Elite Franchise Magazine | May 2016 by Elite Business Magazine

May 2016 ÂŁ4.50

elitefranchisemagazine.co.uk

Trendsetters What sectors are the best fit for franchising?

OUt there

Pyjama drama

Proving the global appeal of kids play

The franchise taking the pain out of weekend planning

On song Angie Coates didnâ&#x20AC;&#x2122;t know what franchising was when she launched Monkey Music in 1993. Now, with 47 franchises under its belt, her pre-school music company is looking to accelerate its expansion across the UK

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

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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.

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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

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CONTENTS

xx REGULARS 9 Editor’s letter 10 Contributors 13 News & events 80 Franchise diaries COLUMNS 15 17 27 29

Cathryn Hayes Karen Kelly Nigel Toplis Tony Bowman

FEATURES

40 Taking centre stage

60 Brand yourself

47 Getting political

64 Check out the tech

54 Better together

70 Finding a remedy

Pyjama Drama is putting kids around the world in the spotlight

Why the government should start supporting franchising

In franchising, it’s common sense for brands to collaborate

An employer brand is the key to obtaining and retaining talent

Prospective franchisees should do their digital due diligence

What treatments can cure an ailing franchise relationship?

30 Welcome breaks

Out There is a hive of activities for busy people

34 On trend

Why do certain sectors prove more popular than others?

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

elitefranchise | May 2016

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20 THE ELITE INTERVIEW Angie Coates is striking a chord with Monkey Music

May 2016 | elitefranchise

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WELCOME

VOLUME 04 ISSUE 05 / 2016

EDITORIAL Adam Pescod – Editor adam.pescod@cemedia.co.uk Josh Russell – Web 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 – Intern 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 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

The next generation

iven the number of franchisors operating in the children’s activities sector, it was only a matter of time before one of them made their way onto our cover. And, having grown Monkey Music into one of the sector’s most successful franchises, Angie Coates is more than befitting of the slot. However, in light of the fantastic work that’s being done to get children off to the best possible start, we’ve also showcased some of the industry’s other leading lights this month. Not only do we speak to Sarah Owen, who has recently taken her kids dramaclass franchise Pyjama Drama

overseas, but we’re also delighted to welcome Little Voices’ founder Jane Maudsley as our new franchise diaries columnist. Elsewhere, Sports Xtra and The Creation Station tell us how their partnerships with Sony and Warner Bros. have helped boost their brands. Certainly the children’s sector is one of many that have found a perfect fit in the shape of franchising. But, if the British franchising industry is to truly flourish, it’s time other sectors gave it a go. This month’s one to watch Out There is an example of how the model can work in markets that aren’t typically associated with franchising. Here’s hoping more will follow.

Adam Pescod - EDITOR adam.pescod@cemedia.co.uk

May 2016 | elitefranchise

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CONTRIBUTORS

Eric Johansson

Our new resident Swede is not only a wizard at assembling flatpack furniture but a talented writer too. This month, Johansson used his keyboard proficiency to answer the burning question of whether or not employer branding matters. When he’s not gracing these hallowed pages with linguistic somersaults, Johansson enjoys cooking, listening to Rollins Band and reading any book by Chuck Palahniuk.

Jane Maudsley

Our new franchise diaries columnist, Maudsley is founder and managing director of Little Voices, a national performing arts organisation that emphasises nurturing talent and building confidence through drama and singing; it’s something she knows a lot about as a former opera singer. Her first column explores the importance of due diligence when buying and selling a franchise. 10

Alex Littner

Littner certainly has pedigree when it comes to finance. Currently managing director at Boost Capital, a business funding company, he previously spent eight years at Amex, working on its Small Business Card Portfolio across EMEA, Asia-Pacific, Latin America and the Caribbean. This month, Littner examines what the government could do to give franchisees a better shot at securing growth capital.

Kate Legg

Legg has recently joined the ranks of Elite Franchise to become our new legal scribe, this month penning a piece on the remedies available when franchise relationships break down. Outside of her judicial duties, Legg recently took a bike ride around Stratfordupon-Avon – not to celebrate the Bard’s birthday but to take in the riverbanks, pubs and tea shops.

elitefranchise | May 2016

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NEWS Queen rewards compassionate carer It is always a pleasure to see franchises being recognised for their hard work but it is particularly enjoyable when a business improving the lives of thousands is rewarded. So imagine our excitement to hear that Home Instead Senior Care has received the Queen’s Award for Innovation. Having established the business in 145 territories, Home Instead Senior Care pairs up carers with clients who have similar interests, enabling Britain’s seniors to age with grace. Fitting, given the award was announced on the Queen’s 90th birthday.

Unveiling the best females in franchising McTablets soon at a restaurant near you Few companies embody the word ‘franchise’ quite the way McDonald’s does. Constantly perfecting its customer experience, the fast-food giant is now installing tablets in the majority of its British restaurants, enabling customers to play games, check social media and browse the web whilst munching McMuffins. The push is part of the company’s Experience of the Future programme, which aims to personalise the fast-food experience for the 21st century. It represents the biggest investment made by McDonald’s during its 41 years in the UK. You want fries with that game of Angry Birds?

EWIF London Meeting May 12 Under 1 Roof, Unit 9 IO centre, Skeffington Street, London, SE18 6SR

Prospective Franchisor Seminar May 16 Harper Macleod Edinburgh, Citypoint, 65 Haymarket Terrace, Edinburgh, EH12 5HD

Prospective Franchisee Seminar May 20 Harper Macleod Glasgow, The Ca’d’oro, 45 Gordon St, Glasgow, G1 3PE

bfa Discovery Hour for Franchisors May 12 Mercure Newbury Elcot Park Hotel, Elcot, RG20 8NJ

Scottish Franchise Business Breakfast May 18 Radisson Blu Hotel, 301 Argyle Street, Glasgow, G2 8DL

EWIF NatWest Awards May 24 280 Bishopsgate, London, EC2M 4RB

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

May 2016 | elitefranchise

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WORDS: ERIC JOHANSSON

Events

Franchising is unfortunately still a male-dominated industry, with the most recent bfa statistics revealing that 77% of franchisors are men. But that’s not to say no one is doing their bit to change this. In a bid to inspire more women to join the industry, Encouraging Women In Franchising (EWIF) has once again announced the finalists of the annual NatWest EWIF Awards. The judges no doubt have their work cut out for them as the 25-women-strong list is brimming with talent. No matter who wins the seven categories on May 24, everyone’s already a winner with ventures like this.

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Cathryn Hayes, head of business support, bfa

Age is no barrier in franchising It’s said that franchisors ignore millennials at their peril but the older generation has just as much to offer According to research by AXA Wealth, more than 500,000 over-55s in the UK have been considering setting up their own business. It’s a far cry from the popular perception of people winding down, ready for their pipe and slippers. Interestingly, another study from PRIME, the charity that supports older business starters, shows that companies launched by people aged over 50 have a 70% chance of surviving their first five years – compared to 28% of businesses started by under-50s. In the UK franchise sector, we have seen older franchisees achieving great success, often after a career in a completely unrelated field. The 2015 bfa NatWest survey indicated that the average age for a new franchisee has remained fairly static at 41 but nearly a fifth of new franchisee recruits were over 50. Some of the advantages that older franchisees can bring include the experience and contacts gained from years working in one or more sectors. Regardless of their previous work history, nothing can replace

experience in dealing with colleagues, customers, offering great service and dealing with problems. And, more often than not, over-50s will be in a stronger financial position than younger people who are looking to buy a franchise. Over the last few years, the bfa HSBC Franchisee of the Year Awards have had a category for ‘olderpreneurs’ – franchisees aged over 55. Last year we saw three

fantastic finalists who have moved on from their previously successful careers to build their own businesses through franchising: Mike Guerin has 13 McDonald’s restaurants across Bristol and Wiltshire, employing over 1,000 staff. He is one of only two franchisees to twice be awarded the McDonald’s Three Legged Stool award in recognition of his success. Guerin launched one of the early McDonald’s apprenticeship schemes in 2008 and eight of his current management team come from the very first programme that he ran. Fran McLean operates a £1m-turnover business with six Pitman Training centres across Scotland, employing nearly 20 staff. She has pioneered Pitman Training initiatives including payment plans for students and flexible diploma courses. She is also using her centre to host exams as an additional revenue stream and this now makes up 10% of Pitman’s business across the UK. Sue Caulfield overcame severe illness and a divorce to build her successful Metro Rod franchise in Oxfordshire. Despite these challenges, Caulfield has grown her business consistently and now operates six vans with nine staff and is set to turn over nearly £750,000 this year. Franchising has plenty of success stories where older franchisees have clearly demonstrated age is no barrier. Without a doubt, career experience can make business ownership a considerably smoother journey. May 2016 | elitefranchise

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To talk to us about starting your own Kumon Maths and English Study Centre call 0800 988 6579 or visit kumon.co.uk. Information sessions are running throughout the UK, book your place now.

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Karen Kelly, founder & managing director, Cleanhome

Recruiting right can help franchisees flourish Many franchisees have little managerial experience prior to acquiring their own business. But hiring the best people can make life a lot easier Given franchising is a great way to start your own business, it’s no surprise that more people are choosing it as a route into entrepreneurship. According to the bfa’s latest survey, 621,000 people are currently employed in franchising in the UK. But what’s more interesting is that the industry seems to be flourishing from within, with a 29% of franchisees in the UK now running multiple units. In addition, the employment rate per unit continues to grow across the industry, with a third of franchised outlets in the country now employing ten or more employees. While attracting top talent is vital to a franchise’s success, it can be a challenge for novice franchisees. Ultimately, when you’re running a business for the first time, you won’t necessarily have the managerial experience, confidence or skills to manage staff effectively. The first step is getting the hiring process right. It’s very easy to be impressed by someone in interview as they can easily be saying the things that you want them to say. That’s why it’s far better to pose more challenging questions, give them some real-life examples of situations they may have to face and ask how they would deal with them. It’s also important to consider how an interviewee’s skill set and personality complement yours. Hiring someone like you may seem like a good idea but what you really need is someone with skills that you don’t possess. If you’re a ‘big picture’ person, you might need someone with more attention to detail.

That being said, it’s still worth making sure that they have the same attitude to your business as you do. While you may be the leader, your team should also have a vested interest in the success of the company as it will contribute to their own career success. Finding somebody with with the necessary commitment and enthusiasm is therefore essential. When you’re running a business, it’s very easy to feel reluctant to let go and trust other people. If you’ve carried out your recruitment process correctly and you’re happy that you’ve hired the right people, you need to encourage them to take responsibility for their own work. The only way the business is going to succeed is for you to focus on growing the business while letting your team focus on the day-to-day responsibilities. It won’t come overnight – after all, you’ve invested into your franchise and it is your baby. But to ensure longterm growth and success, you need to learn to trust your team. May 2016 | elitefranchise

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Advertise your business with Lancaster Toyota and get up to £200 free sign writing The Toyota AYGO is a master-class in efficiency: it’s compact and nimble enough to dance around the city and deliver low running costs all day long... Go Fun Yourself! Toyota Access 2-year Contract Hire example for AYGO x-play 1.0 5dr, 8,000 miles per annum*: 23 monthly rentals of

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THE ALL-NEW RC FROM LEXUS This delightful two-door coupé incorporates elements from the Lexus IS and GS models to create a car with a sleek, bold profile. It is also powered by a choice of petrol or hybrid engines that deliver outstanding performance and fuel economy, perfect for your business.

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Standard EU Test figures for comparative purposes and may not reflect real driving results. Official fuel consumption figures in mpg (l/100km) for the All-New Lexus RC 300h: Urban 55.3 (5.1), Extra Urban 56.5 (5), Combined 56.5 (5). Official CO2 emission figure 116g/km. *For Business Users only. Initial rental and VAT applies. Available on new sales of model shown when ordered and proposed for finance between 1 April 2016 and 30 June 2016, registered and financed by 30 June 2016 through Lexus Financial Services at participating Lexus Centres. Offers only available to businesses within the same postcode area as a Lexus Centre. Other finance offers are available but cannot be used in conjunction with this offer. Subject to availability at participating dealers. We may receive a commission for any introduction to this finance company. Finance subject to status. Applicants must be 18 or over. Guarantees/Indemnities may be required. Terms and conditions apply. Lexus Centres are independent of Lexus Financial Services. Lexus Financial Services is a trading name of Toyota Financial Services (UK) PLC. Registered Office: Great Burgh, Burgh Heath, Epsom, KT18 5UZ. Imagery for illustration purposes only. Jardine Motors Group includes Lancaster Motor Company Ltd, Lancaster Cars Ltd, Lancaster Luxury Vehicles Ltd, Lancaster plc, Lancaster Specialist Cars Ltd and Lancaster Sports Cars Ltd. All of whom are regulated by the Financial Conduct Authority.

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ANGIE COATES

ALL THE RIGHT NOTES 20

elitefranchise | May 2016

ANGIE COATES

From playing the oboe to teaching kids their chords, Angie Coates has lived her life in music. And, since 1993, children and parents have been singing the praises of Monkey Music, her pre-school music franchise BY ADAM PESCOD / PHOTOGRAPHY BY NATALIE SEERY

onkey Music’s founder Angie Coates always seemed destined for a musical career. “I always had music at home,” she says. “My mum is a very keen musician and her grandmother was an amazing pianist.” However, Coates didn’t pick up the bug straight away, as evidenced by her first taste of playing the recorder. “I wanted to leave because it was all boys,” she smiles. “But I’d been thrown out of Brownies the week before, so my mum said I couldn’t.” Coates’ attitude soon changed and her passion for music has flourished ever since. Attending classes at London’s Guildhall from the age of 12, she went on to be accepted as one of only two oboists at the prestigious school. “I went through this hideous audition process to get into the top school,” she explains. “[But] I felt like I’d arrived in the right place; music school was definitely where I was supposed to be.” Yet it wasn’t long after leaving Guildhall that Coates had a change of heart about her career. “When you go to music school you are primed to perform,” she says. “Quite quickly, I realised that I didn’t want to spend my life charging around the country.” She took a teaching role at Thomas’s London Day School in Battersea,

which didn’t have a music department at the time. Within 18 months, she became the school’s first ever head of music, recruiting a number of her friends as teachers. It was an impressive achievement for the 23-year-old Coates. “Looking back now, I realise how big a responsibility that was,” she admits. While the school catered to kids aged three to 13, it was evident which classes Coates found most rewarding. “It was the kindergarten and creche that I got really involved in,” she says. “I realised that pre-school music-making was my favourite part of the job.” The birth of her first daughter also gave Coates some personal insights into children’s relationship with music. “For me, music was like a drug,” she says. “And they seemed to feel like I felt about music at that age.” Equipped with these observations, Coates started constructing the music curriculum on which Monkey Music is now built. But it wasn’t just children that Coates had in mind when developing the programme. “I used to tell parents that their children enjoyed music but they weren’t witnessing it themselves,” she says. “So I thought there was an opportunity to create something for parents and kids – to use music for something amazing.”

May 2016 | elitefranchise

ANGIE COATES

The first Monkey Music class was held at a community centre in Dulwich, where Coates was living at the time. “I remember putting an advert on a noticeboard asking parents to come along and try these classes,” she says. “When I got home I had loads of messages on my answerphone and I thought: ‘Oh god, what have I started?’” Nonetheless, Coates is nothing but grateful for the families who turned up in their droves. “I don’t think we’d be where we are now were it not for those amazing parents,” she says. With the classes proving so popular, Coates decided it was time to step away from her role at St Thomas’s. “Being a teacher is very demanding and I knew that I couldn’t keep up that commitment,” she says. “I wanted to be a little more free.” The classes had also grown to encompass children aged three months up to four years, which was keeping Coates well occupied. “I wanted to make sure I was providing the right thing to different age groups,” she adds. The Monkey Music curriculum currently comprises over 500 songs and compositions, all tailored to a certain stage of a toddler’s development. As Coates explains, teaching a three-month-old baby and their parent is very different to working with a four-year-old on a xylophone. “For a three-month-old, it’s about getting them familiar with sounds,” she says. “It’s also a real bonding exercise for parent and child.” Certainly the focus isn’t on priming children for musical greatness. “Monkey Music uses music as a foundation to support all aspects of development,” adds Coates. “It is using music to develop and nurture life, social, language and physical skills.”

Given the value of the programme she’d created, it wasn’t long before Coates set her sights on expansion. “I was thinking there’s no point just doing this for myself,” she explains. “It could be a curriculum that thousands of children and families could benefit from.” Coates’ relative lack of business acumen meant she was unfamiliar with franchising. But, fortunately, she had a younger brother who was a lawyer. “I remember going for dinner with him one night and saying: ‘I can’t do all of this myself. I have got 500 children at my classes and I’ve got this business to grow,’” she says. “He just looked at me and said: ‘Why don’t you franchise it?’” Recognising that franchising was the right way forward for Monkey Music, Coates’ brother Tim Underhill left his job as a lawyer to become a partner in the company. Today, he is a non-executive director. “He was brilliant at building the foundations of the business, which would have been very wobbly if they had been left to me,” Coates laughs. “We invested a huge amount of time and energy into making sure that the business model was totally bombproof.” Monkey Music’s first franchisees were friends of Coates who initially joined the company as teachers. “They were teaching for about a year or two,” says Coates. “Once the franchise model was established, we offered them the opportunity to become franchisees.” And it was a couple of years before the company sold any more franchises. “It was a very slow, organic process at the start,” she adds. Although many of Monkey Music’s franchisees have previously been teachers or customers, it hasn’t lessened the need for due diligence. “If somebody wants to be part of Monkey Music, I find it difficult to say no,” says Coates. “But it’s not always fair to say yes because it isn’t right for everyone. That’s why our recruitment process is very strict.” As they take the classes themselves – at least in the early stages – being able to sing in tune is a minimum

I felt like I’d arrived in the right place; music school was definitely where I was supposed to be 22

elitefranchise | May 2016

ANGIE COATES

I thought there was an opportunity to create something for parents and kids â&#x20AC;&#x201C; to use music for something amazing

May 2016 | elitefranchise

Angie Coates

Monkey Music wouldn’t be what it is today without my family

requirement for prospective Monkey Music franchisees. That’s in addition to certain personal traits. “We look for a lot of qualities but ultimately it’s passion, drive and energy,” says Coates. Once recruited, a franchisee is put through Monkey Music’s bespoke teacher training programme before receiving ongoing support from head office. The franchise opportunity is also markedly broader than it was back in the late 1990s. In addition to the compulsory 36 weeks of term-time teaching, franchisees have the option of running holiday workshops and parties. It means that a single territory is generally enough for a Monkey Music franchisee. “Our model has grown to such an extent that one territory is a very ripe business opportunity,” says Coates. Now with 47 franchises under its belt, Monkey 24

Music is starting to ramp up its rate of expansion on these shores. “At the moment our aim is to recruit ten new franchisees per year,” says Coates. This growth will be managed by Hannah Garcia, who was appointed as franchise sales and recruitment manager last September. “We had almost reached saturation point in some areas,” Coates continues. “So we recruited Hannah to help us spread our wings and be more strategic with our sales.” But, despite some interest from aboard, international expansion isn’t currently on Monkey Music’s radar. “We haven’t ruled it out but it’s impossible to do everything at once and do it well,” says Coates. “There is still so much to do in the UK.” And that extends beyond growing a franchise network. Monkey Music has recently signed a deal with Campbell Books, the specialist pre-school division of Macmillan. It will see Monkey Music’s first book – Let’s Sing and Play – published this July, with a second set for publication in June 2017. “It was fantastically rewarding to have that recognition from a publisher,” says Coates. Recognition has also come in the shape of awards. As well as scooping a number of gongs from the preschool and parenting communities, Monkey Music was named Express Newspapers Brand Builder of the Year at the bfa Franchisor of the Year Awards in 2005. “The awards have helped enormously,” says Coates. “We are providing a service for children and families so it’s really important that we are taken seriously.” The importance of family to Coates’ own story certainly can’t be overstated. All of five of her daughters have been through the Monkey Music programme, with her oldest, Millie, going on to teach music professionally. “Monkey Music wouldn’t be what it is today without my family because it’s come from me being a mum and a musician,” says Coates. Her husband Duncan, a Bafta-winning TV producer, has also leant his creative input. “He pushes me, challenges me and takes me out of my comfort zone,” says Coates. “He has given me a lot of confidence.” And how does he cope being the only man in the family? Coates smiles. “He loves it.”

elitefranchise | May 2016

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

Do you have:

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

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04/04/2016 13:45

Nigel Toplis, managing director, The Bardon Group

Building a long and happy franchise relationship Cautious courtship is key to preventing heartbreak for franchisor and franchisee alike Whilst the relationship between franchisor and franchisee is absolutely fundamental to the success of a franchise, there is no single definition that totally explains the nature of that relationship. But it is worth exploring the dynamics of this partnership, what a franchisee should expect from it and what steps they should take to ensure the chemistry is right before signing on the dotted line. Evidently, where a relationship is founded on mutual respect, openness of thought, common objectives

and a comparable level of energy, dedication and drive, there is every chance it will thrive. Conversely, if a relationship has become acrimonious, neither party sees eye to eye and all enthusiasm and trust has dissipated, then for the sake of everyone involved, it is probably worth initiating divorce proceedings. Before you take the plunge Taking on a franchise is a big decision – right up there with getting married – so it requires careful and due consideration. As with any new

That first heady flush of infatuation can wear off very quickly; make your decision based on fact, not emotion

relationship, only fools rush in. That first heady flush of infatuation can wear off very quickly, so it’s best to take your time, find out as much as you can to check out your compatibility and then make your decision based on fact, not emotion. When you think you have found the right business, stand back and ask yourself the following questions. Can it offer solid, reliable returns? What support is provided by the head office? How strong a foothold does it have in the market? Does the company have a finance facility with the banks? Then, like checking out a prenuptial agreement, franchisees should take the franchise agreement to a bfaaccredited lawyer and get feedback on its contents and meaning. Once the courtship is done, make your decision. Only if it feels absolutely right should you sign up. Like a marriage, it’s significantly easier to break off an engagement than file for divorce. Happily ever after? Clear, open communication between the franchisor and franchisee is vital at all stages of the franchising relationship, from courtship through to marriage. As in any family, there’s bound to be ups and downs but the main thing is you are part of a group of people with a shared vision: to build a successful business. If you put as much as you can into your business while maximising the mentoring and support available to you from the franchisor, you will both be celebrating many anniversaries to come. May 2016 | elitefranchise

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04/04/2016 14:18

Tony Bowman, managing director, etyres

Having the A-team on your side As a franchisee, there can be nothing more valuable than a head-office team that has been in your shoes Having the best team alongside A senior member of personnel with an extensive you to offer advice and support background in the business is powerful for three key should be something all new franchise reasons. Firstly, they are experienced in building owners look for from their franchisor. successful branches. Secondly, by stepping into Whether their expertise lies in accounting, management roles, it demonstrates their commitment marketing, sales or IT, you want to feel and loyalty to the company. And thirdly, their input into confident you’re getting support from management decisions will always be evenly balanced the best and that the company’s strategy with the views of the franchise owners. is based on the decisions of the most While our finance director and sales and marketing experienced team members. manager both have a wealth of experience in their In certain circumstances, respective fields, team members it is possible that some who have hands-on experience of Team members of the people in these running their own branch command who have hands-on positions are also currently, a special kind of respect from our experience of running or have been, franchise franchise owners. their own branch owners themselves. Having From a franchise owner’s point of someone on board who view, it is important to consider the command a special understands the day-tocalibre and track record of the headkind of respect day trials and tribulations office team before signing up to a of the franchise – as well franchise. After all, you are investing as having a wider overview of how the in the brand and the individuals behind it; the people who company needs to be run – means that ensure it is well-managed and driven forward. Because of you will be dealing with an individual who this, when you are given a tour of head office, it is a good both knows the business inside-out and idea to chat to the team. Whilst framed awards and a has a strong bond with the brand too. smart meeting room are good indicators that the business For example, two of our key etyres is ambitious and successful, you want to know that these head-office staff have invested in their people can support you when you need to overcome a own territories. Our head of IT has sudden supplier problem or complete a VAT return. enjoyed tremendous success running four Finally, for the franchisor, it is vital to have a professional branches with his business partner, while team at your side and to prize those with first-hand our operations and field sales manager was experience. Along with the franchise owners, these are the at the helm one of our busiest branches for people who will help to shape your company and have a many years. big impact on the level of success you all achieve. May 2016 | elitefranchise

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29/04/2016 12:20

Out There

Living for the weekend Lifestyle and marketing platform Out There is aiming to ensure that the world stays busy BY Eric Johansson

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rganising activities for the weekend can be a struggle for full-time workers. As their weeks flash by in a haze of deadlines, meetings and workouts, they can be forgiven for finding themselves with nothing to do once Saturday comes knocking. Fortunately, lifestyle and marketing platform Out There is doing its bit to simplify the planning process. The brainchild of husband and wife team David and Nicola Palmer, Out There doubles up as an activityfinding service for the general public and a marketing tool for local leisure companies. Customers can either sign up for newsletters on events, places and services in their area or simply peruse Out There’s website, scanning the pages for things to do. Either way, advertisers benefit from the permission-based marketing approach as they can be certain their audience actually wants to see their advertising. But while Out There might sound like a credible business model, its future as an enterprise wasn’t always set in stone. “It was never our plan to start a business,” says Nicola Palmer. “It evolved by itself.” Out There’s origins can be traced back almost a decade to when the couple began renting out their holiday home on Fuerteventura, one of the Canary Islands. “We quickly discovered that we were quite good at renting out our home,” says Palmer. It wasn’t long before neighbours and friends began asking the couple to rent out their holiday homes too – not just in Spain but across the globe. And this is what sparked the Palmers’ first venture: Perfect Getaways. Launched in 2007, the company specialised in renting out properties to travellers who were weary of hotels and would rather opt for a home-away-from-home experience. As the company grew, Perfect Getaways took up an increasing amount of the couple’s time. Palmer soon chose to forgo her financial services job in order to work on the startup full-time. “And then David was offered a redundancy on a really good plan,” she

explains. “So he took the deal and started working for the business full-time a couple of years after I did.” Having established Perfect Getaways, the Palmers decided to launch a second venture in 2013: My Travel Pal. The platform, an early version of what eventually became Out There, catered to travellers looking for things to do whilst on vacation in Europe. “When you rent private holiday accommodation, you don’t have a concierge advising you on the best places to eat or where the nearest golf course is,” explains Palmer. And that’s exactly what the Palmers’ new platform set out to solve. “It is like travelling with a pal who tells you about all the best things to do,” she adds. As Palmer explains, there were some very sound reasons why My Travel Pal was launched on the continent and not in Britain. “We avoided the UK market at the time because we felt that competitors like Groupon had filled the market already,” she says. However, launching My Travel Pal in Europe proved trickier than expected. “We quickly realised that Europe was a very difficult market for us to get into because it required us to sell our product on a face-to-face basis,” explains Palmer. Opting out of constant business trips, the Palmers decided to bring My Travel Pal back home to Blighty where another surprise was waiting for them. Instead of travellers looking for new and exciting things to do whilst on vacation, the marketing platform’s main UK audience turned out to be locals searching for things to do on their days off. “We didn’t expect that,” confesses Palmer.

It was never our plan to start a business

May 2016 | elitefranchise

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Out There

Adjusting to the revelation, the Palmers reimagined and relaunched My Travel Pal as Out There in 2015. They also opted for a slightly different growth strategy, solving a problem from their days in Europe in the process. “We decided to franchise so that franchisees could go and do the face-to-face meetings,” Palmer explains. Franchising also meant that the couple avoided giving away huge chunks of their company to investors and saved them having to employ people across the country themselves. Just two months shy of its one-year anniversary, Out There has 12 franchisees covering 22 areas across the UK. Suffice to say, each franchisee has been carefully selected by the Palmers. “We need people who understand the trials and tribulations of running a business, as well as the hard work that comes with it,” explains Palmer. “We will turn someone down if they think that they can do it part-time or that it is going to be a quick and easy way to raise money.” To ensure that service is kept consistent across the country, new franchisees embark on a four-day training course where they learn more about how the company operates. They also have a chance to attend a one-day sales academy run by Neil Clough, a former contestant on The Apprentice who is currently serving as non-executive director of Out There. But the support doesn’t end with the training. Out There’s central account management team is just a phone call away, eager to pounce on every opportunity to help franchisees set up meetings with clients or to assist them during those appointments. The Palmers’ investment in the technology behind Out There has also helped deliver consistency across the network. “Our website does a lot of things for us automatically,” she explains. “At the push of a button, it sends out everything for us; it can set up an advert and it ensures that we keep the service the same.” Given they run a company that caters to consumers’ weekend plans, it is not surprising that the Palmers leave their jobs at the office. “We completely switch off,” Palmer says. “We used to work from home in the beginning, which was a challenge. But now that we have two young children, we don’t do any work in the evenings or at the weekend.”

We quickly realised that Europe was a very difficult market for us to get into

And while other business leaders may refrain from working with their spouses, the Palmers are adamant that they benefit from the partnership. “He’s good at some things and I am better at others, so we complement each other really well,” says Palmer. Ultimately, the couple aims to expand Out There to the continent and across the pond. But growing the company domestically is their first priority. “We’ve got lots that we want to do here,” explains Palmer. “We want to establish national partnerships with different businesses in the leisure industry.” Although the Palmers hooked up with the likes of Ryanair during their Perfect Getaway days, building those relationships is still some way down the road for Out There. The company first has to grow to at least 60 territories across the UK. “We are running quite an aggressive marketing plan to sell those areas or to employ people there ourselves,“ continues Palmer. “So we’re probably looking at the end of this year.” Once those relationships are established – a process the Palmers expect will take two to three years – they’ll look to expand Out There beyond the borders of the UK. “We’ve left Europe for the moment,” Palmer concludes.

elitefranchise | May 2016

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29/04/2016 12:22

Educational, Therapeutic, Stimulating, Motivational, Music Based Activity Franchises! Children’s music franchise £5,997 +VAT Music for the elderly franchise £5,997 +VAT Complete package - both for £8,977! +VAT

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04/05/2016 17:27

Franchising trends

On trend Whilst franchising is a very flexible model, thereâ&#x20AC;&#x2122;s no hiding from the fact that it has achieved particular success in certain sectors. So whatâ&#x20AC;&#x2122;s driving success in these industries? BY JOSH RUSSELL

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Franchising trends

People are always surprised to learn what a wide range of businesses can actually be franchised Bill Pegram, The Franchising Centre

rowse through a franchise catalogue and it’s likely you’ll quickly notice that specific trends emerge. Whether it’s coffee or cleaning, certain sectors have proven to be incredibly fertile ground for franchising. But why is it that some industries are more suited to franchising than others? When thinking about trends in franchising, many people’s minds go straight to the classics. “People tend to think about the high-visibility stuff like retail and food,” says Bill Pegram, director at The Franchising Centre, the franchise consultancy. “But they’re always surprised to learn what a wide range of businesses can actually be franchised.” Far from being the sole preserve of high-street brands like Clarks and McDonald’s, franchising has also flourished in sectors such as fitness, lettings and childcare. The sheer versatility of the model means that franchising can be translated to a wide variety of sectors. “We speak to people every week who had never realised their business could be franchised,” adds Pegram. So what is behind the explosion of franchises in certain verticals? “Franchises have often hit the market at a time there’s a massive growth potential,” says Richard Holden, head of franchising at Lloyds Banking Group. One example he gives is that of domiciliary care. With an ageing population and a government keen to reduce the burden on the NHS, franchises providing home-based care were in the perfect position to capitalise on booming demand. Viewed through this lens, the emergence of large-scale national success stories was perhaps inevitable. “The trends in what’s popular in franchising mirrors what’s happening in the general economic climate,” Holden explains. And this isn’t the only thing driving the rapid proliferation of franchise outlets in certain sectors. “Things are so fast-moving these days that a lot of new businesses are aware of the fact that they’ll soon have competition,” says Pegram. “Everybody is interested in the land grab now.” In much the same way that startups like Facebook or Twitter focused on securing market share in the early years, businesses in many emerging sectors have become aware that they are engaged in an arms race with the competition. “They need to get rolled out across the country quickly and become the market leader before their competition catches on,” he says. “The quickest, most costeffective way to do that is through franchising.” That’s not to say every sector lends itself to this kind of rapid expansion though. “There are certain models that may not have the ability to grow as quickly,” says Emily Price, operations manager at the bfa. “Where you’re dependent on finding a very specific skill set in a May 2016 | elitefranchise

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Peter Moore, Director PMA Ltd t/a www.superyachtsdirectory.com “I have sold (and bought) through the Business Partnership and have found them to be very thorough and professional in all their undertakings. I would not hesitate to recommend them and would hope to use them again in the future.”

COULD YOU BE A BUSINESS BROKER? Do you want an exciting and rewarding new business career? Would you like to manage a home-based business that offers greater job satisfaction and provides an excellent life work balance? The Business Partnership helps hundreds of business-owners every year to sell their businesses. Why not join our network of professional business brokers? As a regional partner, you will enjoy the benefits of being part of a mature organisation, which has been trading since 1979, and the support of like-minded professionals.

“I could not operate as cost effectively without the support of the franchise. The knowledge and support from fellow partners is always useful and allows me to run my own business, whilst being part of a good network of business brokers.” Paul Dodgshon, ManchesterCentral

Whatever you want for your future, we can help you get there. For more information: 0870 444 0 555 | www.business-partnership.com | enquiry@business-partnership.com ULTI001 Business Partnership FP Feb16.indd 1

28/01/2016 17:54

Franchising trends

franchisee, that may hinder growth.” When working in highly technical disciplines, reducing all the core competencies required to a simple, replicable model may not be realistic. In light of this, disciplines like engineering or dentistry are never likely to be major franchising trends. “Purely because you are dependent on finding a very niche person to service each territory, you might not find that you can expand fast enough in that particular sector,” she adds. Another thing to watch out for is trying to piggyback on the latest craze. “Franchising is not very good for fad industries that are here today and gone tomorrow,” Holden says. An example he gives is the vogue for fish pedicures a few years ago. Whilst the huge explosion in demand meant that it was really tempting for franchises to get involved in the sector, this enthusiasm was short-lived. It transpired that there was a risk that the fish could help to spread certain bacterial infections and the outlets rapidly dropped out of popularity. “The businesses didn’t last very long,” he says. “So obviously that didn’t give the franchisee very long to be able to get a return on their initial investment.” The only other sectors that don’t tend to lend themselves to franchising are those with razor-thin margins. “With a franchise, you’ve got two people in the pot,” says Holden. “There has to be enough profit for both the franchisee and the franchisor to make money.” Whilst sole traders can easily thrive on smaller profits, these industries are unlikely to support a wealth of thriving franchises. The one exception to this is sectors where franchisees have lower margins but have a very high turnover to compensate. “In those circumstances, you have enough profit because you’ve got ample sales,” he says. Either way, it’s hard to deny that certain sectors have proven particularly popular. But one still has to ask if this might be something of a double-edged sword. “It’s great for the franchise sector because it means that the businesses are doing well,” Price says. “It gives us an opportunity to highlight the success stories within the industry.” Unfortunately, whilst these success stories are good news for franchising as a whole, they can also encourage imitators. “You get the ad hoc brands that decide they’d like to hop on the bandwagon,” she says. “They try and get in there because they see that there are other companies doing well.”

Franchising is not very good for fad industries that are here today and gone tomorrow Richard Holden, Lloyds Banking Group

Thankfully, savvy consumers will typically spot copycats for what they are. “You tend to find that the cream rises to the top,” says Holden. “The ones that succeed are those that have a competitive advantage or unique selling point.” By way of example, he points to care brands Home Instead Senior Care and Bluebird Care; whilst they weren’t necessarily the first through the door, they have endured purely because they have created an offering that truly stands out from the crowd. “There are businesses that launched before them but they are the ones that have actually developed the best through franchising,” he says. However, outside of these well-established sectors, should the UK be doing more to spread the word about franchising? “We tell businesses about franchising and they say they hadn’t even thought of it,” Pegram says. Often businesses only become aware that franchising is a viable option in their sector when they begin to see franchised brands crop up. Pegram believes the franchise sector should be doing more to reach these businesses before this happens. “It would be nice if we could get that message out there so a business learns about franchising before seeing it work for their competition,” he says. “We need to raise awareness and provide education about what franchising has to offer.” May 2016 | elitefranchise

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04/05/2016 14:13

PYJAMA DRAMA

Starting as a single class in Wales, Pyjama Dramaâ&#x20AC;&#x2122;s fun-filled sessions are now entertaining kids in all corners of the globe BY ADAM PESCOD

elitefranchise elitefranchise || May April2016 2016

PYJAMA DRAMA

hen Sarah Owen founded Pyjama Drama at home, grabbing a few of the kids’ instruments, making back in 2005, she probably didn’t envisage up a few songs and hiring a hall,” says Owen. “It’s a cottage her children’s drama classes being taught in industry really.” Australia, Malaysia and the USA 11 years later. However, Despite the strong start Owen had enjoyed in her she is now taking international expansion in her stride. hometown, the idea of franchising Pyjama Drama wasn’t Owen launched her first class in yet on the agenda. “When it started to hometown Welshpool following a career as be successful in Welshpool, a few people The children were said I should franchise it,” she says. “But I a secondary school drama teacher. Having had her three children close together, she responding with thought that was too far down the line. At introduced them to drama by playing time, I was enjoying what I was doing such imagination the games and making up songs at home. “One and organically developing the programme day I thought: ‘I wonder if I can turn this through trial and error.” to the things I into a class,’” says Owen. “The children But, when her youngest son started was doing were responding with such imagination to school, Owen was faced with a decision: the things I was doing.” should she return to full-time teaching or Realising she might be onto something, Owen sent a continue building her new venture? Opting for the latter, flyer about the classes to her son’s playgroup. “There was Owen decided it was time to franchise. As she explains, it a good response straightaway,” she says. And from there, was the route that made the most sense for the business. she started working with Welshpool’s three nurseries. “Pyjama Drama is quite personal and you put a lot of Fortunately, it didn’t take much capital to get the fledgling yourself into the sessions,” she says. “You need to feel like business off the ground. “It was just printing off a few flyers you own it rather than employing teachers who maybe don’t have that same sense of ownership.” Before she could start recruiting franchisees, however, Owen had to alter the name of the business, which was launched as Dinky Drama. “It was indicated that Dinky Drama probably wouldn’t be approved as a trademark as there was another business called Dinky Dancers that offers pre-school dance,” says Owen. “So I had to change the name to Pyjama Drama.” Once the new name was approved, Owen brought Anna Lingard on board as her first franchisee. As a mother who already attended the classes, she was the ideal candidate. “Anna was a perfect fit because she knew first-hand what the classes were all about,” says Owen. “She also had two young children of her own, so she wanted something that fitted in flexibly around her family.” The other thing that worked in Lingard’s favour was her drama skills, which Owen looks for from all Pyjama Drama franchisees. “You don’t necessarily need to have taught it but you do need the skills,” she explains. That’s in addition to ambition, tenacity and a personable nature. “Franchisees need to be good with children but they also need to be good with mums, dads and other nursery workers,” she adds. Pyjama Drama currently has 32 franchisees in the UK, with another four set to join before July. “The last six months have been really busy,” says Owen. And, for the past year, Owen has been juggling UK expansion with the company’s first foray into international territories. The company’s overseas expansion was sparked when existing franchisee Amanda Plumridge decided to move to Australia. “She was very determined to take Pyjama Drama with her,” says Owen. Having not previously entertained the idea of taking the franchise outside April May 2016 | elitefranchise

pyjama drama

the UK, leaving it in the hands of somebody she knew gave Owen some much needed peace of mind. “Because Amanda and I have built up a lot of trust, that was a really good starting point for our international development,” she says. “If it had been somebody I didn’t know, it would have been a lot trickier.” Aside from a few tweaks to the vocabulary – “flip-flops are called thongs and duvets are called doonas,” Owen explains – the Pyjama Drama programme has translated quite well to the Australian market. And, once Plumridge has proven the model in Perth, she will be given the chance to expand the brand across the rest of the country. “The agreement with Amanda is that she is going to take on the master licence in the not too distant future,” says Owen. It’s a similar case in Malaysia, where Pyjama Drama launched this January. Rather than proactively exploring opportunities in the Asian country, Owen was approached by franchisees Karen Tan and Shanie Loo, who had been following the brand for a couple of years. “They liked what we do and decided to make contact when they saw we had gone to Australia,” says Owen. After numerous conversations 42

It wouldn’t have made sense to just sell one franchise in Malaysia and walk away over the course of six months, Tan and Loo started delivering classes on Malaysia’s Penang Island earlier this year. “I just thought they were the right people,” continues Owen. “They are the kind of franchisees I had been searching for over here.” Because English is the second language for the majority of children in Malaysia, the structure and content of the classes haven’t needed too much altering. “There is a slight change in delivery, so training is taking a bit longer,” says Owen. “But the feedback from Karen and Shanie is that the children are responding fantastically.” Given the size of the Malaysian market, the intention is to eventually expand Pyjama Drama beyond Penang, with Loo and Tan taking on the master licence. “It wouldn’t have made sense to just sell one franchise in Malaysia and walk away,” she adds.

Most recently, Pyjama Drama landed in California. After stumbling across the company online, drama teacher Sarah Rijnen is now delivering classes in the Central Coast region of the US state. “If Sarah proves that Pyjama Drama can work there, we will set up a franchising company together,” says Owen. “The laws are slightly different in America so Sarah isn’t a franchisee; she is a partner who will hopefully go on to sell franchises across the country.” Having snapped up three international territories in a little over a year, things certainly seem to be on the up for Pyjama Drama. However, the franchise isn’t looking to add any more countries in the near future. “The strategy now is to just stop and focus on what we have got,” says Owen. “It would probably be a little bit naive to take on another international franchise at this stage.” And if her initial overseas experiences have taught Owen anything, it’s that finding the right people can make life a lot easier. “If you take on the wrong franchisee in the UK, it can be difficult,” she says. “But it’s never going to be as challenging as taking on the wrong person abroad.”

elitefranchise | May 2016

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Action Coach advertorial May16.indd 1

04/05/2016 10:06

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I banked on myself

Joanna Martorana was at a pivotal point in her life when she discovered ActionCOACH

uring my 12-year career in investment banking, I had married and had two children whilst working 12-hour days. I was well aware that sacrificing time with my family was far too big a price to pay. I had a wake-up call in 2013, which led to my marriage ending a year later. I knew that this huge, life-changing decision was still not enough and that by 2015 I had to have made another big change to find happiness through my own personal fulfilment. I had to be doing something different to spend more time with my family. I had to invest in us. In October 2014, the lightning bolt hit. I went to Brad Sugars’ seminar and, on the spot, I was hugely inspired and I knew that this was my calling. It was a catalyst for changing my life for the better. I had not been looking to start my own business or buy a franchise but my gut feeling said that ActionCOACH was what I had been looking for to make that change.

On June 22 2015, I attended two weeks of ActionCOACH University. I went there as my old self and came out on a new journey to become an Action Business Coach, ready to take on my ActionCOACH business. I started my ActionCOACH business in July 2015 and won my

The perceived risk I took to leave my job in banking and start a business has paid off almost immediately first client in just three weeks. Three months in and I had secured four clients through a mixture of business development strategies suggested by the franchise support team. I have three strategic alliances where I’ll be running business growth workshops with their clients and referrals. I have also used ActionCOACH’s Chesterfield client generation centre to bring in two clients. I build

relationships with their marketing team, which includes Jon Asquith, a former BFA franchisee of the year finalist, and his dedicated team. Following the ActionCOACH franchise system is another reason why my business has taken off so quickly. I like following systems and I think the support from the franchise team is excellent. John Cottrell is my coach’s coach and I work with him every month on developing my business, my coaching skills and, more importantly, myself personally to become a better me for my family and my clients. And as for Julie Wagstaff, co-founder of ActionCOACH in the UK, she is a fantastic support along with the rest of the team in head office - they have a smile in their voice whenever I call. Work-life balance On a personal note, the perceived risk I took to leave my job in banking and start a business has paid off almost immediately. My work-life balance changed overnight. I can now take my kids to school and pick them up because I choose to work from 9am to 3pm Monday to Friday. The first three months were stressful but that was expected. What I didn’t expect was to bank £5,000 in my third month of operation, reach my goal of £10,000 client income in month five, and how great a feeling it is to know that my clients are already benefiting way more. There is a famous quote from business coach and author Tony Gaskins: ‘Don’t chase love, fame or success. Become the best version of yourself and those things will chase you.’ I banked on myself and embraced personal development. ActionCOACH is already changing my life for the better and the investment was worth every single penny. The whole team deserve all their successes.

You can find out more about ActionCOACH by calling 01284 701 648 or watch their opportunity overview video at actioncoach.co.uk May 2016 | elitefranchise 45

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TAXA001 04/04/2016 13:36

Government support

Getting political With franchising’s economic contribution undervalued by politicians and many franchisees ineligible for existing SME support, it’s time for the government to step up by Alex Littner, managing director of Boost Capital

ranchising is a great British success story. The industry made a contribution of more than £15bn to the UK economy last year – a huge 46% increase over a decade. But it could do more. Few franchisors have reached their saturation point in the UK, leaving significant room for growth. So where is the government backing to encourage this untapped potential? Politicians say SMEs are key to the nation’s economic health, yet they rarely mention franchising. Most seem unaware that franchises are small businesses too – even if they often have large and influential parents.

Lack of financial support As with many things, much comes down to money. A lack of finance was named as the greatest barrier to franchise growth in the latest bfa report, with insufficient capital cited as the most likely reason for franchisors to turn down would-be franchisees. Given that three out of five franchisees need to

borrow money to get their business up and running, it stands to reason that access to outside capital is vital for franchise owners looking to launch and grow their operations. But what has this got to do with politics? Surely it’s an issue for the banks? Up to a point, it is. Yet the government has the power to push those banking institutions to open up their loan books to entrepreneurs. Traditionally, the banks have looked more favourably on franchises than standalone businesses because their failure rates are lower. But, according to research by the University of East Anglia, many franchisees still express frustration that the government doesn’t work more to encourage bank lending to franchises. The financial establishment has been markedly less keen to lend to smaller companies – franchises included – since the economic downturn. This is where political influence could really improve the lot of Britain’s small business and franchising communities. May 2016 | elitefranchise

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Government support

Help for some – but not all A vast range of government funding does exist to help Britain’s small firms, from £1,500 grants towards the cost of hiring apprentices through to tax breaks for firms investing in energy and water-saving technologies via the Enhanced Capital Allowance scheme. But, unfortunately, many of the pots of cash set aside for SMEs are out of reach to those running franchises. Grants and tax perks for areas such as research and development or technological innovation are unlikely to be applicable to many franchises. As franchisees operate within established systems where the franchisor takes responsibility for any major new developments in processes and infrastructure, it means R&D usually remains within head office. The Start Up Loans scheme is another example of where franchises sometimes lose out. This government programme offers those over the age of 18 loans up to £25,000 to get a new business off the ground but it is not open to everyone investing in a franchise system. Franchisees who buy and hold stock and earn revenue on items sold can apply but others cannot. Such exclusions are found in the small print and it is not surprising that franchise owners are often confused and frustrated when their research efforts prove fruitless. The paucity of support for franchises may be a reflection of their higher comparative success rate – less than 5% fail annually

Politicians say SMEs are key to the nation’s economic health, yet they rarely mention franchising

compared with one in ten firms in the general business population – but that’s scant consolation to the franchise owner who needs help. Funding failures One political initiative that promised to give a boost to small businesses was the Enterprise Finance Guarantee (EFG) scheme. This sees the government guarantee 75% of bank loans granted to eligible small firms. The intention is to give the financial behemoths greater confidence in lending to SMEs, and franchises that are part of a credible franchise network can apply for finance through the scheme. In his last budget – one that George Osborne insisted ‘backs small business’ – £1bn was committed to fund SMEs through the British Business Bank, with much of that money channelled through the EFG programme. But behind the headlines this project isn’t helping many businesses at all. At the time of the Budget announcement, I pointed out that the British Business Bank’s own EFG lending figures showed just 446 companies were lent a total of £55.7m in the last quarter of 2015. Additionally, only 1,835 enterprises received EFG-backed loans during the whole of last year. When the UK boasts 5.4 million businesses, 99% of which are SMEs, one realises how small these sums are. Add to this the failure by the government to announce a definitive launch date for its bank referral scheme – a measure first unveiled in 2014 and designed to introduce businesses rejected for bank loans to alternative finance providers – and official efforts to help small enterprises begin to look tokenistic. Reduce confusion and simplify searches Westminster’s power is often wielded indirectly, with official funds directed to SMEs in the form of grants, tax breaks and, importantly, May 2016 | elitefranchise

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Government support

Unfortunately, many of the pots of cash set aside for SMEs are out of reach to those running franchises business advice. Despite the comprehensive guidance provided by most franchisors to their networks, more help in the form of mentoring, advice on running an enterprise and training in essential business skills are all things that many franchisees acknowledge they would find useful. Since the demise of the government advice service Business Link in 2011, many SME bosses are at a loss where to turn for authoritative help. And their bemusement is understandable. When it comes to official sources of support, both financial and general, the picture is fragmented, with many schemes administered at a regional or local level. The government’s main online portal does have a list of possible sources of funding and guidance but the onus is on the business owner to do the hard work, trawling through hundreds of grants, funds and schemes for what might suit them. Again, a franchisee might wade through this information only to find they’re not eligible in most cases. Finding new types of funding The irony is that help is available for small firms and franchises that want to grow. Alternative finance – which encompasses short-term lenders, invoice finance providers, crowdfunders and peer-to-peer platforms – has the capital to lend to SMEs but has yet to reach large swathes of the small business community. Government intervention of the

type outlined in the proposed bank referral scheme could make this important shift. This would be official support of an indirect sort but one that could prove extremely effective in producing the desired outcome – betterfunded, flourishing businesses that contribute yet more to the country’s prosperity and success. In many respects, the franchising industry is doing well on its own – the evidence of its success is there for all to see. But its growth could be phenomenal with additional government help. Franchising deserves more official recognition than it currently receives and should certainly get more targeted support. The powers-that-be could push the banks harder to lend, whilst also encouraging SMEs to engage with new funding providers. Solutions are available – what we need now is a little political will to action them. May 2016 | elitefranchise

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ADVERTISING FEATURE

A Dynamic and Recession-Proof High-Street Franchise The ZipYard is the fastest-growing garment-alteration franchise in the UK. With distinctive branding and well-planned shop fits that minimise square footage for maximum profit, the opportunity provides owners with a business that is welcome on any high street

fficially launched in Britain by The Bardon Group in 2011, The ZipYard’s growth has been very strong and the company is well on the way to achieving its first target of 50 centres in the UK. The business provides a much needed service and has a real role to play in the rejuvenation of UK high streets. The ZipYard concept offers total flexibility, providing the opportunity to simply run one centre or build a bigger business through owning multiple ZipYard centres throughout the country. Specifically designed to project a stylish, high quality image, the ZipYard offers a wide range of alteration and tailoring services, all done on site by trained professionals in purpose-built, beautifully shopfitted centres, branded with the ZipYard’s signature eye-catching yellow and black colours. From dress restyling and taking in or letting out to bridal-wear fitting and formal wear alterations, The

ZipYard provides convenient, speedy and cost-effective clothing alterations and repairs. The ZipYard franchise package is a total turnkey operation, comprising a complete shop fit, state-of-the-art machinery, computer systems and a comprehensive marketing package that includes regional PR activity. The package includes industrial sewing machines, specialist alteration and repair machinery, a computer, software, EPOS system, signage, fixtures and fittings, various consumables, starting stock, plus training and ongoing support from the franchisor, and a marketing and PR campaign to launch each centre. Why choose The ZipYard? Former driving instructor Richard McConnell opened England’s first ZipYard franchise in Altrincham in 2011 followed by a second centre in Wilmslow in 2013. “We did lots of research in the franchise press and online, and looked into a wide variety of franchises,” says McConnell. “The Altrincham ZipYard has exceeded all of our expectations and the model is so well thought out that it was easy to replicate in Wilmslow. Our reputation went before us and the customer base in the new ZipYard is building very nicely. “Initially it was my wife who noticed the ZipYard advert and she thought it was a fantastic idea. We did some research and quickly realised that there was no real competition in our area. Most of the time clothing repairs

are done as a bolt-on service at dry cleaners. The turn-around time isn’t very good and they don’t offer a very wide range of services.” Marketing Head office provides a wide range of marketing support to the network including email marketing, a comprehensive range of promotional collateral and window posters that are supplied free of charge throughout the year to each centre. All franchisees also have access to a retained PR agency that carries out regular activity on behalf of the ZipYard to raise awareness and generate footfall.

I have been extremely pleased by the success of our ZipYard store so far. As with any business, if you can combine excellence in service with excellence of products you have a winning formula and we certainly have that here at the ZipYard Bedford Graham Mulheron, The ZipYard Bedford

Contact: Emma Downes t: 01530 513307 e: edownes@thezipyard.co.uk Total Cost:£38,500 + VAT plus shop fit

elitefranchise | May 2016

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THEB002

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BRand Collaborations

Better together Hooking up with another brand can be a great way to grow your market share. But the trick is finding the right partner BY ADAM PESCOD

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BRAND Collaborations

ike any business, a franchise’s growth depends on building up a solid base of customers and keeping them engaged with its brand. But while the temptation might be to throw money at a digital marketing campaign, there are plenty of alternative avenues available to franchises when it comes to creating some additional exposure. One of the most popular options is to partner with another brand that shares the same values and target demographic. Not only can this position a franchise in front of the right kind of people but it can also elevate it in the eyes of consumers and franchisees alike. However, despite the clear benefits of joining forces with another brand, it doesn’t reduce the need for an ample amount of due diligence before making a commitment. And that’s regardless of the size of the company in question. Ultimately, if the chemistry isn’t right, a brand partnership can do more harm than good. With that in mind, we hear from three franchises that have seen collaborations work in their favour.

“The most important thing is brand match,” says Cressall. “It’s about finding a family-friendly brand that ideally has a link with creativity.” As a result, the company has also had to turn down a few brands. “We are very selective over who we partner with,” she adds. Other brands that The Creation Station has partnered with include Lego and Aardman Animations. As part of a collaboration between itself, Aardman and the Intellectual Property Office, the company ran a week of innovation-themed workshops based on the animator’s popular kids’ TV show Shaun the Sheep. “The children were making little contraptions, thinking about patents, innovation and how creativity is critical in our society,” says Cressall. Not only have these partnerships aided The Creation Station’s mission to get children thinking creatively, they have also been well-received by franchisees. Creative collaborations “It’s a very good brand-positioning The Creation Station, the children’s arts tool,” says Cressall. “Our franchisees and crafts franchise, has partnered with love the fact that by being part of The a number of national and international Creation Station, they can be involved in brands since launching in 2002. “We like Sarah Cressall, The Creation Station partnerships that a one-man band down to associate with other great companies,” the road couldn’t do.” explains Sarah Cressall, The Creation Ultimately, Cressall concludes, the success of such Station’s founder and managing director. collaborations hinges on trust. “If we’re putting their Most recently, the company teamed up with brand in our hands, we just need to be very careful Sony Pictures Home Entertainment, running to respect it,” she says. “And we would expect them creative workshops to tie in with the release of to do the same.” Hotel Transylvania 2 on DVD. The partnership was sparked after a member of the PR team working on the film took their child to a Creation Station class. Breaking the ice “It literally happened because of the positive impact Pizza franchise Papa John’s has enjoyed some being made by our franchisees,” says Cressall. impressive growth on these shores over the past 15 “Childhood creativity is being crushed by the years – reaching the landmark of 300 outlets in July education system, so people are attached to what we 2015. But while most people will be used to seeing are trying to do.” the brand on their local high street, the partnership However, despite the allure of working with a that Papa John’s struck last year with Planet Ice, global brand like Sony, The Creation Station is Europe’s largest ice leisure brand, highlighted careful not to rush headlong into new partnerships. another part of its expansion strategy.

We are very selective over who we partner with

May 2016 | elitefranchise

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Join the UK’s leading packing and shipping specialists

PACK & SEND is very different from a simple courier or shipping company Our retail-based one-stop shop franchise for collection, packing and delivery to anywhere in the world is unrivalled in the UK and is used by individuals and businesses alike. We are now in the process of expanding our UK store network, and are keen for more high-calibre candidates to join the team! • High gross profit margins • Rapidly cash generative business model • No direct competitors • 20+ years of trading success since our global launch in Australia • Low staffing levels and B2B trading hours • Low levels of non-perishable stock • Comprehensive pre-launch training • Hands on in-store support post-launch To learn more about owning your own PACK & SEND store contact our franchise development team now on 0118 958 4628 email them at franchises@packsend.co.uk or visit packsend.co.uk/pages/uk-franchise-opportunities/

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Brand Collaborations

The collaboration has thus far seen Planet Ice open Papa John’s outlets in its Milton Keynes, Uttoxeter, Coventry and Basingstoke centres, all of which host professional ice hockey matches. “It’s good for prospective customers to see our brand in association with some high-level ice hockey,” says Anthony Round, business development manager at Papa John’s. “We have had some success in the States doing the same kind of thing, so it is a good fit with the business.” And, as a Papa John’s franchisee, the partnership has also delivered tangible benefits to Planet Ice. “Having a branded food offer has helped them develop and grow their business,” says Round. “Hopefully they are seeing increased revenues from the association with a national brand.” Beyond Planet Ice, other Papa John’s partners include Welcome Break service stations, as well as a handful of holiday parks and universities. However, Round explains that partnerships of this kind will continue to represent a small slice of the company’s overall UK presence. “We are not actually seeking a lot of partnerships,” he says. “We are more selective on who we want to work with because they have got to offer the same quality as us in terms of product and service.” Suffice to say, Round has some sound advice for franchisors who might be eyeing up a

brand collaboration or two. “As well as doing your due diligence on a proposed partner, you should also pick the market segment that is most aligned with the demographic of your own business,” he says. “And don’t take the first offer that comes your way.” A taste of the limelight There’s nothing quite like hooking up with Hollywood when it comes to boosting your brand. It’s certainly proven fruitful for Sports Xtra, the children’s activity franchise. Last year, the company joined forces with Warner Bros. to help promote Tom & Jerry: Spyquest, which was released to mark the 75th anniversary of the classic cartoon. “They were looking to promote it through different on-the-ground activities, which is how they found us,” says Rob Oyston, managing director of Sports Xtra. “Our ethos is all about engaging children to enjoy physical activity.” Although Sports Xtra was already running a Spy Xperience course, it was evident how partnering with Warner Bros. would help elevate the brand. “By joining up with Tom & Jerry and Warner Brothers, we saw that we could engage a different type Rob Oyston, Sports Xtra of child and have a positive impact on children who might be more inactive,” Oyston explains. Attracting more children to the classes also brought a healthy uplift in revenue. “The more participation we have, the better the franchises do as well,” he adds. The company has since gone on to strike a deal with Sony – and its experience with Warner Bros. was the perfect preparation. “We learnt a lot of lessons,” says Oyston. “A lot of work goes into designing lesson plans exclusively for a film, so we made sure we could deliver them for longer and promote them better.” As well as advising other franchisors to treat their first brand partnership as a pilot, Oyston says companies need to ensure they are partnering with the right type of company. “If you are going to enter a partnership, particularly with brands that are bigger than yours, you just have to make sure that the fit is right,” he says. “Despite any temptation we have been careful to only enter into partnerships with brands that will reinforce the values of Sports Xtra and encourage children to have a positive experience in physical activity and sport.”

If you are going to enter a partnership, you just have to make sure that the fit is right

May 2016 | elitefranchise

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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.”

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

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An individual launch marketing plan and marketing campaign enable franchisees to hit the ground running. We work with you to make your business a success. To register to attend a Discovery Meeting near you, visit www.home-xperts.co.uk or email at us at franchise@homexpertsuk.com

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Our top franchisees become members of the HomeXperts ‘Altitude Club’ by earning more than £25,000 in a month in invoiced commissions. Clever marketing has helped our franchisees to achieve proﬁtability and sustainable businesses. Our intensive training academy trains to National Federation of Property Professional (NFOPP) standards. 22 weeks of ongoing support to guide new franchisees through their business set up process.

Each franchisee has a Support Manager to guide them through the launch processes and business development. Monthly one-to-one’s to discuss your progress. To join HomeXperts call us on

01905 678853

HOME003 Untitled-15 1

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ADVERTISING FEATURE

Xperts leading the way

ired of making money for someone else? Is it time to take more control over your daily life? Do you want a rewarding and challenging career working for yourself? If you want to expand your skillset, meet lots of new people and deliver an exceptional level of customer service then an estate and letting agency could be right for you. If you’re passionate about property and helping people move into their dream homes, then one company worth seriously considering is HomeXperts. Why choose HomeXperts? Its innovative estate and letting agency franchise model enables you to work from home or a small serviced office, eradicating the expensive rental costs of a high-street store. You could secure your financial future by working hard and following the proven franchise model. HomeXperts’ top-earning franchisees join the HomeXperts Altitude Club by earning more than £25,000 in invoiced commissions in a month.

gold in 2015. The innovative franchise model also won Best Use of Technology to Improve your Business at the 2015 West Midlands regional Chamber Awards, becoming one of eight national finalists. What if you’re new to the industry? An initial two-week intensive training academy trains you to National Federation of Property Professional (NFoPP) standards. All HomeXperts franchisees finish its training academy with the consumer-focused approach: ‘We don’t just sell or let houses, we really help people to move’. Following your initial training, you will receive 20 weeks of ongoing mentoring and support to help you through the business set-up process.

What support will you continue to receive? The award-winning HomeXperts franchisee hub hosts all of the documents you need to run a successful and profitable estate and letting agency. The cloud-based hub provides 24/7 access to over 1,000 training documents, more than You could 300 webinars and in excess of 100 marketing secure your materials. The comprehensive training and support package is completed with quarterly financial future by working hard franchise meetings, monthly business reviews and twice-weekly webinars. and following

the proven franchise model

Do you want to join the best of the best? The multi-award-winning HomeXperts franchise was the winner of The Sunday Times’ Best Estate Agency Franchise for the last three years, retaining

How will you build up and establish your business? You will receive a personalised launch marketing campaign to help you to build up your brand presence in your local area. You will have your own local website including access to their free instant online valuation tool, which provides users with an instant valuation of their property and generates more leads for you. How will you fund your business? HomeXperts is the sole estate and letting agency partner of the government-funded back-to-work scheme FranchisingWorks, enabling you to receive up to 100% funding. HomeXperts franchisees are eligible for up to 70% funding towards the initial franchise fee and first year’s running costs through all the major high-street banks.

Interested in a HomeXperts franchise? To find out 100% of the information, book your discovery meeting by emailing josh@homexpertsuk.com. If you have any initial questions, please call Josh Birbeck, HomeXperts’ franchise recruitment manager on 01905 678853. Visit brochure.home-xperts.co.uk to read through our virtual brochure. May 2016 | elitefranchise

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Employer brands

BRAND YOURSELF B

Franchisors looking to win the talent war cannot afford to have bad employer brands By Eric Johansson

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usinesses live and die by their ability to attract the best talent. Without the right people, franchisors are left with no one to launch their companies into the stratosphere. But, in an increasingly candidate-led labour market, finding high-quality employees to man the take-off is easier said than done. While an unemployment rate of 5.1% may sound like stellar news for the UK, the skills shortage has left franchisors with a limited talent pool from which to source candidates. It also means that jobseekers can afford to be picky about who they apply to work for. â&#x20AC;&#x153;More and more people want to work for employers that they believe will treat them well and offer an attractive working environment,â&#x20AC;? says Joao Araujo, country manager at Universum, the employer branding experts. The trick to winning the talent war for franchisors is to ensure that they have strong employer brands. For anyone unfamiliar with the term, an employer brand is a companyâ&#x20AC;&#x2122;s reputation for how

elitefranchise | May 2016

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Employer brands

it treats its staff. So while a company brand attracts customers, an employer brand attracts potential employees. “Without a good employer brand, we’d lose market share, our franchisees would miss opportunities and we’d miss the best candidates,” the case. “All companies try to says Suzie McCafferty, franchise director at Select create a good culture and employer Appointments, the recruitment agency. brand but you cannot hide from Poor employer branding doesn’t just slash social media if you are not great,” franchisors’ chances of attracting talent; it can also says McCafferty. Ultimately, ‘fake it see recruitment costs skyrocket. Recent research until you make it’ won’t cut it with from LinkedIn revealed that companies with employer branding. Franchisors have subpar employer branding on average have to offer to make a genuine effort to be a great 10% bigger pay packages than competitors with employer in order to build a fantastic better reputations. In other words, franchisors employer brand. who don’t take control of their employer brands Araujo advises franchisors looking can find themselves failing to recruit candidates at to boost their employer brands reasonable prices. “It’s crucial that your company to start by asking themselves one can tell its own story,” says Mark Di-Toro, careers question: “Why do we exist as expert at Glassdoor, the online employer review an organisation?” By asking that service. “Your employer brand is your reputation; if question, employers can pinpoint you don’t define it, someone else will.” what the company’s And that someone could be a vision and values are, franchisor’s own workforce. Social Without a good which can also help media and employer-review sites like employer brand we’d motivate staff. “They Glassdoor have provided employees will feel that they are with countless platforms to vent how lose market share part of something they really feel about employers. and miss the best larger than just the And it seems prospective jobseekers candidates office they are working are interested in their comments. in,” says Berry. “Candidates are looking to hear from Suzie McCafferty, Select Appointments For the past year, their peer group, rather than from the Bluebird Care has been employer,” says Duncan Berry, COO at busy articulating what its values are Bluebird Care, the care company. “As an employer, in a bid to improve retention and you have to be increasingly aware of social media recruitment. “People don’t generally comments and how people rate you online.” have a very good perspective of what So while an exceptional About Us page on a it is like to work in the care sector,” company’s website may have been enough to says Berry. The solution was to ask convince candidates in the past, that is no longer themselves what values Bluebird Care actually stands for. “Having those values helps our franchisee network and carers understand why they get up every day,” he explains. Yet establishing company values and vision is only the first step. McCafferty advises franchisors to consider the identities of the candidates they look for, what kind of employer they are and what the company culture is like. That way, employers can May 2016 | elitefranchise

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Employer brands

Your employer brand is your reputation; if you don’t define it someone else will Mark Di-Toro, Glassdoor

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better understand what they may have to change in order to attract much-needed talent. Just like selling a product, attracting jobseekers comes down to knowing your audience. “You may be an employer working in a fast-paced environment but not all candidates may want to be working in a fast-paced environment,” explains McCafferty. Needless to say, franchisors rely on franchisees to ensure that the employer brand rings true throughout the organisation. Franchisors are therefore advised to establish a manual and code of conduct for their franchisees. “That way, everybody shares the same vision, values and beliefs,” says McCafferty. But the top-down approach is not the only way to establish a good employer brand. Franchisors should also be open to ideas coming from the bottom-up. “I spoke with a franchise owner yesterday who’d introduced a random-acts-of-kindness box,” says Berry. The box allows franchisees and

staff to give employees small tokens of appreciation, making them feel valued for their efforts. “Being able to share fantastic little ideas like that across the network is one of the advantages that franchises have,” he adds. While franchisees can come up with brilliant ideas, they could also hurt the employer brand by treating employees unfairly. “You must react to that quickly because your franchise network is only as good as your worst franchisee,” says McCafferty. In the case of a franchisee not conforming to Select Appointments’ employer brand, McCafferty would sit down with the franchisee and explain where they have deviated. “Then we give them more training and set up a plan to get them back on track,” she says. According to McCafferty, constant reconfirmation of the employer brand is key to ensuring that franchisees conform to it. “We have regional meetings where we share best practice,” she says. “We also organise national field competitions and awards to ensure that standards are being maintained.” Finally, it is important to recognise that establishing a great employer brand is not a one-off effort. Maintaining a good reputation requires continuous improvement and awareness of what employees actually think of you. “Franchisors should conduct regular studies to understand the current satisfaction levels of employees in different branches,” explains Araujo. “They should also monitor social media to hear what people are saying about them.” With a good employer brand, employees will take to social media, encouraging talent to apply for roles at your company. However, just because they talk about you with passion and excitement now doesn’t mean that their enthusiasm will last. “You cannot rest on your values as a brand,” concludes McCafferty. “You have to continuously look at what’s next.”

elitefranchise | May 2016

29/04/2016 14:02

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04/04/2016 13:56

Tech for franchisees

Check out the tech In an increasingly digital world, finding a tech-savvy franchisor can be the key to success for any first-time franchisee by Josh russell

give tech due consideration echnology isn’t necessarily always the first thing people when eyeing up franchises. think of when making a foray into franchising but it can “They should assess what prove both an invaluable asset and ally when trying to grow they need to run a business in a business with limited resources. their field and then see if the Ultimately, anyone looking to grow their own business has one franchisor is offering all the main goal. “Every franchise owner wants to make as much profit tools they require,” says Ben as possible,” says Nick Strong, Brookes, director of franchising managing director of Franchise at Agency Express, the provider Intelligence, the franchise of estate-agency board services. consultancy. But the more time Whilst a franchisee’s first a franchisee spends on nonpriority should be any industryrevenue-generating tasks like specific software they require payroll or capturing enquiries, – whether that’s booking the less time they have to focus systems or point-of-sale on bringing the brass into the technology – it’s also important business. By automating some not to undervalue more generic of these processes, technology Ben Brookes, Agency Express solutions like cloud accounting can help them refocus their tools or invoicing solutions. energies on the task at hand. “The more the franchisor can bolt on the better,” he says. “Technology allows franchisees However, merely having an extensive software suite isn’t enough; it to spend more time with clients also needs to be kept up to date. “Software changes all the time and and less time on admin, so so do the requirements of the client,” Brookes says. “If something more money can be earned and dramatic changed within the industry, you’ve got to be able to their margins can be larger,” move with that.” Ultimately, it’s no good putting your life’s savings Strong adds. into a tech-focused franchise if most of its network is still running Because of this, it’s important Windows XP. Perhaps even more than a comprehensive tech that prospective franchisees

It’s a continual process; if they’re not investing in their systems, they’ll be falling behind

elitefranchise | May 2016

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29/04/2016 14:04

Y E A R S Established in 1996

IN FRANCHISING

llect money or t having to co no l, ia nt so have a te po e earning onal office. I al th gi re b, y jo m e th in of aff s ttings agencies friendly st â&#x20AC;&#x153;I love the hour e staff in the le rstanding and th de of un e e m th so d n an ow chase debts, nts, and have kn hip with my clie nchisee.â&#x20AC;? fra a as e great relations tim e ork, for my entir with whom I w (W London) e for 20 years ise ch an Fr ly Dennis Hea

What you can expect from us... If you are gas and/or electrically qualified

Sales and Marketing is carried out by the regional management franchisee and work generated for you Our Bureau facility collects and allocates all payments from clients Credit limits are set and a credit control process is implemented for all clients A bespoke IT system caters for all aspects of the business Payments are made to all franchisees twice a month upon receipts and VAT calculated for you All franchisees are audited in the field by our technical gas and electrical experts

www.g as-elec.co .uk/franchise Celebr

0 800 0 15 20 3 0

ating 20 years in fran chising & business! GASE001

GasElec.indd 1 Franchise Recruitment - Business Franchise - Feb 2016 (20 Years A4 - awards entry).indd 1

04/04/2016 13:50 19/02/2016 13:57:19

Tech for franchisees

toolkit, franchisees should be looking for indications that a franchisor makes a point of keeping up with the latest tech trends. “It’s a continual process,” he says. “If they’re not investing in their systems, they’ll be falling behind.” Even if a prospective franchisee finds a tech-savvy franchise, this doesn’t mean they should just sign on the dotted line without digging any further. Due diligence is an essential part of buying a franchise, so a potential franchise owner should subject a franchise’s software to the same level of scrutiny as its financials. Brookes recommends that they arrange a one-to-one meeting with the franchisor and ask if they can get a first-hand look at how its systems work. “That would be my first question: ‘How are you utilising the technology that is out there and can you show me?’” he says. “If they can’t, then I’d be very concerned.” But this is far from the end of the process: Brookes suggests getting in contact with existing franchisees Don’t focus on and asking them questions on how the franchisor’s tech is helping them. technology; “Does it provide all of the services focus on what that they need it to?” he asks. life will look “What are the pitfalls? What are like as trading the problems?” The next step is to franchisee speak to competing franchises and see how their technology compares. Nick Strong, Franchise Intelligence “Assess whether what they’re offering is equal, better or worse,” he says. “That obviously gives you a good yardstick.” Finally, prospective franchisees should ask the franchisor if it is able to put them in touch with clients to find out how its systems benefit them. Another important consideration for a prospective franchisee to make is the potential return on investment that a given franchisor’s tech can offer. “Look at the cold, mathematical calculation of the investment that has gone 66

into a franchise’s technical systems versus the cost of taking it on,” says Strong. As long as a franchisee is getting more value in terms of tech than it’s spending in fees, it will represent incredibly good value for money. “If you’ve got access to half a million quid’s worth of development, you’re just never going to be able to top that,” he says. “In which case, it’s worth getting involved.” All of this is well and good but it presupposes that a franchisee has a certain level of technological knowledge. What about those who are less confident when it comes to tech? “Don’t focus on technology,” Strong says. “Focus on what life will look like as a trading franchisee and what will be incumbent upon you to be successful within that franchise.” Concentrating on what they need to build their business should prevent even the most technophobic franchisee from becoming overwhelmed. “As long as a system still enables you to be nimbler, faster and earn more money, then the technical side of things is something that you don’t need to worry about,” Strong concludes.

elitefranchise | May 2016

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Kitchen Duct and Kitchen Deep Clean experts

FRANCHISE OPPORTUNITIES This is your opportunity to become part of an established, accredited and successful organisation. We already have work for you with some of the world’s leading brands, including KFC, Crowne Plaza and McDonalds.

Benefits of owning an Envirogroup Franchise:

Commercially proven business Recession proof /legislation led Fully supported through telemarketing and website Ongoing training and technical support package Exclusive protected territory Van livery, racking, own branded chemicals and specialist equipment

     

Five franchisee in the last five months have realised the advantages of an envirogoup franchise

Investments from £19,500

Envirogroup have business waiting for you in all areas of the UK. For more information or an appointment to discuss, please contact:

John Brooks

Franchise Director

t: 0284 175 4035 e: john@envirogroupni.com w: www.envirogroupni.com

ENVI001

BUYING AN EXISTING FRANCHISE IS A GREAT WAY TO RUN YOUR OWN BUSINESS. Buying a resale gives you the security of buying a franchise with the added bonus of an existing business with customers and a running cash flow from day one. Franchise Resales are the UKs only dedicated franchise resales broker in the Uk affiliated to the bfa. Franchise Resales offers franchisors support and guidance in their resales process as well as providing a hand held service to selling franchisees businesses.

FRANCHISES WE WORK WITH: • Dyno • Minster • Signs Express • Mail Boxes ETC • ServiceMaster • GreenThumb

THE BRAND AND THE BUSINESS STRATEGY IS ALREADY IN PLACE, ALL YOU HAVE TO DO IS IMPLEMENT IT. t. 01522 246811 e. info@franchiseresales.co.uk w. http://www.franchiseresales.co.uk

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HP Ad Place RHP.indd 1

04/05/2016 17:55

ADVERTISING FEATURE

Probably the best franchise in the UK today thebestof might not be the most well-known franchise in the country but, with a ten-year track record and more than 150 UK franchises, it’s certainly one of the most successful

fter it was launched in 2005 by Yorkshire-born entrepreneur Nigel Botterill, thebestof quickly became the fastest growing franchise in the UK. Over the last few years the franchise has shown no sign of losing pace: thebestof continues to go from strength to strength, with Botterill and his team amassing a cupboardfull of awards along the way. Franchising has a faultless formula. After all, what securer way is there to start your own business? Throw together an ambitious business owner and a successful model with all the support you could dream of and your business has a far better chance of success.

What is thebestof? Thebestof is a marketing franchise. Our franchisees identify the best businesses in their area and, using marketing tools unique to thebestof, work with the business owner to showcase and promote them. There’s only room for one thebestof franchisee in each town – one individual, partner or team who will champion the very best local 68

businesses in each area. So could that town’s hero be you? “It has been the most fun that we have ever had running a business” Adrian Keeling, thebestof Woking, attended an information day and met head of the franchise Michelle Downey. “And what a fascinating day it was,” Keeling says. “The whole concept is well thought out and fun as well.” He and his wife Amanda were impressed with the support infrastructure available. “It’s amazing,” he says. “It’s clear that they really care about their franchisees. We purchased the franchise for our home town of Woking and were on the next induction day for new franchisees just five days later. We now have over 70 clients and a residual income of £5,500 a month. We can only say it has been the most amazingly fun experience that we have ever had running a business.” Residual income is the key Stuart Pate, franchisee for thebestof Kettering, says: “The earning potential is very simple. It’s very black and white: if you get five businesses per month, that will get you £72,000 by the end of the year and £15,000 in sign-up fees. “Imagine doing that in year two, year three and so on and you can clearly see what can be achieved. With 200 businesses, your monthly residual income would be in excess of £19,000. Residual

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ADVERTISING FEATURE

income is the key. It means that you do not have to think about how to earn each month because your income comes from monthly membership payments from your local businesses. “There are additional revenue streams also. Every day is different but you get such a sense of satisfaction from this role, which is why I have been a franchisee with thebestof for ten years now and still enjoy it as if it were day one.” Connecting local people and businesses With thebestof, a franchisee becomes part of the community and works to connect local people, the businesses and organisations that serve them. Quite simply, thebestof is the go-to place for everything happening locally. Because of the nature of the business, it’s a huge help if franchisees are passionate about their local community. Thebestof team are choosy about who they accept as a franchisee – it’s a people business after all. They know well the characteristics required to become successful. Thebestof ’s application process may be rigorous, but new franchisees don’t necessarily need sales experience or technical skills. What matters most is that each new franchisee is a genuine people person. If you’re bright and switched on, not intimidated by hard work and you’re passionate about making a positive difference to your community, then thebestof could be the perfect franchise opportunity for you.

This is a business that can be developed by working hard but also gives time for family. I work from home with my team of four. thebestof provide support and training delivered by expert franchisees and keeps abreast of changes in marketing. Diana Vickers, thebestof Pembrokeshire

With a young family, I wanted to be able to grow a business, yet fit work around my children. I work extremely hard, yet I’m able to take my children to school, work from home and enjoy growing an interesting business that has exceeded my expectations. Penny Wilby, thebestof Sudbury

It’s a great ambition isn’t it? Wanting to be your own boss. We are only recruiting 25 new franchisees in 2016... Could you be one of them? To see if your area is available:

visit www.getthebestof.co.uk or call 0121 765 5556 and speak to Rosie

THEB007 May 2016 | elitefranchise

The best of advertorial May16.indd 2

04/05/2016 18:41

Legal remedies

A remedy for th i y r eve ng BY Kate Legg,

CEO of Komerse

Most relationships between franchisor and franchisee go off without a hitch. But, in the rare cases where things don’t go to plan, it’s important to know which legal remedies can help you

ranchise agreements are signed with the hope and intention that they will sit in a drawer gathering dust, never to be referred to again. But, in actual fact, if things do go wrong, the franchise agreement will be one of the first points of call. In the event that one of the parties doesn’t uphold their end of the bargain, it’s worth making yourself aware of some of the legal remedies available. Damages The most common remedy if one party breaches the franchise agreement is to claim financial compensation, which is referred to as ‘damages’ or ‘unliquidated damages’. The purpose of damages is to compensate the injured party for their loss, not to punish the party in breach. All forms of financial loss are potentially recoverable as long as they were reasonably foreseeable at the time when the parties entered into the agreement. Franchise disputes often cause the parties a great deal of stress and upset; but damages generally can’t be recovered for emotional distress. The amount of compensation that will be awarded is decided by the courts based on all of the relevant facts. The starting point is to consider the difference between the position that the innocent party is actually in and the position

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that they would have been in but for the breach by the other party. The burden of proof is on the claimant to show that they have suffered a loss, although the actual amount of the loss may be difficult to quantify. A claim for damages is not a blank cheque – the injured party is under a duty to do what they can to mitigate their loss. Liquidated damages The franchisee and franchisor will sometimes agree in advance on the amount of compensation that will be paid in the event of a breach. This is known as ‘liquidated damages’ and avoids the difficulties of having to prove the amount of the actual loss at the time. The amount stated in the clause must be a genuine estimate of the losses that the parties expect to suffer, otherwise the clause may be considered an unenforceable penalty. Alternatives to damages Occasionally, financial compensation will not be enough to adequately compensate the injured party. In that case, the injured party may be able to claim an equitable remedy. This is a court order that requires the defaulting party to do something (known as ‘specific performance’), not do something (an injunction) or to account to the innocent party for the profit they have

elitefranchise | May 2016

29/04/2016 14:06

Legal remedies

committing a breach of contract. As a result, legal advice should always be sought before using this remedy.

made as a result of the breach (account of profits). The court also has the power to undo the entire contract and put the parties in the position they would have been in had the contract never been entered into in the first place (rescission). However, these remedies are rarely used in practice. Termination If a breach is extremely serious, it may ultimately result in termination of the franchise agreement. This can be done either under the terms of the franchise agreement itself or using the legal principle of â&#x20AC;&#x2DC;repudiatory breachâ&#x20AC;&#x2122;. Termination under the franchise agreement The terms of the franchise agreement will usually give the franchisor the right to terminate if the franchisee is in breach or becomes insolvent. In most cases, the franchisor wonâ&#x20AC;&#x2122;t be allowed to terminate immediately but will have to give the franchisee the opportunity to remedy the breach, going on to terminate only if the franchisee fails to correct the position within a set time frame. Only in very serious cases will the franchisor be permitted to terminate the franchise agreement immediately.

All forms of financial loss are potentially recoverable as long as they were reasonably foreseeable Termination for repudiatory breach Both franchisor and franchisee have a right to terminate under the legal principle of repudiatory breach. This means that if one party is in breach, the innocent party can terminate. However, in this case, the breach must be something extremely serious that goes to the very essence of the contract. Care must be taken before terminating for repudiatory breach because getting it wrong might see the innocent party themselves

Alternative dispute resolution Alternative dispute resolution (ADR) clauses are becoming standard practice in franchise agreements. An ADR clause will allow the parties to settle a dispute using mediation or arbitration instead of court proceedings. Both mediation and arbitration have the advantage that the proceedings are held in private rather than in open court where anyone will be able to observe. Furthermore, the parties will be able to appoint a mediator or arbitrator of their choosing. This can be particularly useful if the dispute involves very technical issues, as the parties can appoint someone who is an expert in that field. The main difference between mediation and arbitration is that in mediation, the mediator will try to find areas of common ground between the parties and facilitate a settlement that both parties are willing to agree to. In the case of arbitration, the arbitrator will hear both sides of the story and then make a decision in favour of one party or the other, in much the same way that a judge does in traditional court proceedings.

Whilst litigation should always be the last port of call, timely use of legal remedies can prevent a dispute from doing any long-lasting damage. May 2016 | elitefranchise

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29/04/2016 14:07

Where’s the fire? Secure your Future with a Jackson Fire & Security Franchise A Jackson Fire & Security franchise meets the constant demand for legally compliant Fire Safety systems from businesses and organizations throughout the UK. Profit from 25 years of industry experience, gold standard industry accreditation and a solid reputation within this lucrative sector. With an increasing demand for property protection and surveillance, and an ever present need for fire protection why not find out how you could profit from running a Jackson Fire & Security Franchise. • A Recession resilient business • Fire Alarms - a requirement for every business and managed property • Growing demand for property protection and surveillance • Repeat business maintenance and servicing • 25 year reputation • Gold standard Industry Accreditations As this is a management franchise no previous industry experience is required.

Call us on 01352 755866 for more information or email: franchise@jacksonfire.co.uk

www.jacksonfire.co.uk

JACK001 Jackson Fire & Security.indd 1

28/01/2016 17:55

Buy a coffee franchise with

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

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

Untitled-2 1 Advert - November 2013.indd 1 Talk Business

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

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

Jani-King – cleaning franchises with a real difference…

As a result of planned retirement we are offering three going concerns for sale: · Yorkshire circa £50,000 · East Midlands circa £100,000 · East Anglia circa £30,000

This is a unique opportunity to buy established and profitable businesses (£15k to £35K monthly turnover). Usually franchise partners build their businesses up over time as we source and deliver the contracts for them as needed, but in this case the businesses already exist, are fully operational and profitable. These are established business with long term customer contracts in place, unlimited capacity for additional growth and income from day one.

The purchaser will benefit from:

· High revenues from day one · Fully staffed business with experienced operations management structure in place · National Blue chip clients · Cash collection service · Ongoing business management and development support · Significant million pound growth potential with no need for selling, we’ll win the business for you To enquire about any of these business for sale please call Freephone 0800 917 3293 or email info@janiking.co.uk

JKFR001

Franchise RESALES - sponsored by Franchise ReSales May16.indd 1

04/05/2016 17:33

Location: Merseyside £425,000

Looking for an established business in Merseyside? - How about one that’s already turning over in excess of 1 Million per annum? Minster Merseyside is a management franchise, and as such a franchisee can include a mix of marketing, client liaison and team management in their day to day activities. A typical day could include: • Travelling to see new clients and preparing proposals • Area management team meetings to discuss the day to day running of the business • Checking budgets and cash flow to keep the business on track Everyday is different and very busy which keeps it interesting. The current franchisee of Minster Merseyside is looking to retire and the business is available to offers in the region of £425,000. Please contact us on 01522 246811 or email info@franchiseresales.co.uk

Franchisee: Ipswich Location: Ipswich Investment: TBC Established: 2010 Turnover: £58,850

MINS001

A resale opportunity has arisen for one of our Franchises based in Ipswich. The franchisee started the practice in 2010 from shop front premises. The business has 102 clients with gross recurring fees of c£55,000. As the business operates from a shop front, any purchaser would be walking into a ready-made business with a fully fitted shop complete with furniture, IT and telephone systems. This represents an excellent foundation upon which a new franchisee can further develop an already established business. The business has enjoyed regular growth with the majority of new clients coming from recommendations, walk in business and inbound leads generated from the Support Centre. For a franchise re-sale you only pay us a half franchise and training fee as we recognise that you will also be investing in purchasing the business. You will of course benefit from the training and support that a new franchisee would expect.

TAXA001

Franchise RESALES - sponsored by Franchise ReSales May16.indd 2

04/05/2016 17:34

BE PART OF THE EXCITING NEW CURRENCY REVOLUTION

Largest cashless banking facility globally

Generate revenue 24/7

22 year old pedigree

Enjoy exponential profits

Franchising in 13 countries

Be part of a franchise community

Over 60% of businesses need our service

working ahead of the curve

UNITED KINGDOM

CHINA INDIA

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 WXEǺ

NEW ZEALAND

BBX001

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

BB UK

BUSINESS BANK EXCHANGE 29/01/2016 16:57

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

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

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

Regional P&L Forecast YEAR

P&L

£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

FRANCHISE FOCUS

ActionCOACH

ActionCOACH is a multi award winning franchise. ‘Best Overall Franchise Award’ for 2014 in the £25k to £75k investment category. ‘5-Star Franchisee Satisfaction Award’ - 2nd year running. ‘Award for Continuous Improvement’ & Compare The Financial Market’s ‘UK’s Best Business Opportunity’. ActionCOACH is the world’s number one business coaching franchise, with more than 1,000 offices in 50 countries. Our teams of coaches were originally frustrated, undervalued entrepreneurs and white-collar managers.

• Best UK Business Opportunity according to Compare The Financial Markets • Guaranteed £10k per month by month 7 for the best applicants (Ask us about Ts & Cs) • 1st to achieve 5 Star Franchisee Satisfaction Award • Personal investment can be as low as £10k • You get to reap the rewards; the more you put In, the more you get out • Winner 2014 Best Franchise Award sponsored by RBS • Break the 9-5 routine!

Watch a six-minute overview video at www.actioncoach-franchise.co.uk/overview

Contact Rainy or Sam | Call: 01284 701648 | email: rainy@actioncoach.com | www.actioncoach-franchise.co.uk

ACTI002

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

Caremark

Caremark offer a management style franchise, within the home care sector. Franchisees have the opportunity to grow and develop a business providing care and support to those wishing to remain living independently in their own home within an exclusive territory. On-going support both in field and office based ensure franchisees have the best possibility to replicate Caremark’s system. Enabling them to build a business in this growing sector, which can provide both financial and personal rewards.

• Proven business model • Outstanding support • Comprehensive ongoing training • Established network • Elder sector set to grow by 51% by 2030

Call 01903 266 392 | email: franchise@caremarklimited.co.uk | www.caremarkfranchises.com

Cookery Doodle Doo

Are you a Star Baker? Share your passion for food with young cooks and grow your own successful business with Cookery Doodle Doo. We’re looking for smart cookies to join our franchise network and launch cooking classes for children aged 3-10 in your area. Speak to our founder Katie today and find out why we’re the fastest-growing children’s cooking school in the UK! Call 07588692955 | cookerydoodledoo.com/franchise

BBX001

CARE001

• Turn your passion for baking into a business • Work that fits around your family and lifestyle • Training, equipment, support and original child-friendly recipes provided • Featured on ITV, BBC, Bloomberg and Gurgle Magazine

COOK001

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FRANCHISE FOCUS

DNS Accountants

The flexible, efficient & highly rewarding Accountancy Franchise Whatever your experience we have the PERFECT Franchise solution for you. Whether you have many years accountancy experience or are a trainee accountant / bookkeeper looking for a great product, training and support, then we have the Accountancy Franchise for you. Our Franchise Package also includes fully integrated cloud-based bookkeeping and accounting software, as well as high quality leads through our proven lead generation marketing; we give you the tools to succeed and stand out in this highly competitive industry.

• Award Winning Business • Proven Sales Program and Leads • Free Accounting & CRM Software • Large Marketing Territory • Full Training & Unlimited Support • IT Set-up, Back-up & Support • Low Overhead Zero Risk Solution

Call: 020 7148 1706 | email: info@dnsaccountantsfranchise.co.uk | www.dnsaccountantsfranchise.co.uk

The Best Of

Residual Income, Low Maintenance and HUGE growth potential. Our franchisees identify the best businesses in their local area and then using a suite of marketing tools unique to thebestof, work with the business owner to showcase and promote them. Your core income will be from the monthly membership payments made to you by local businesses. When you’ve got 200 featured businesses, your regular monthly income should be heading north of £19,000 each month. Remember: residual income is a beautiful thing.

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

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

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.

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• 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

May 2016 | elitefranchise

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Franchise Diaries with Jane Maudsley, founder and managing director of Little Voices

The good, the bad and the ugly A franchise partnership is unlikely to prosper unless each party knows each other inside-out Having met the founder of one of the pioneering franchises in my sector this week, I am acutely aware of how much competition has arisen in performing arts in recent years. It’s something that our forefathers in the late 1980s and 1990s did not have to worry about. At Little Voices, this increased competition means it’s never been more crucial for us to be seen above the crowd. That’s why each individual child’s vocal and dramatic development remains at the heart of all that we do and every decision that we make. We have to be the best. It’s a similar case for franchisees when it comes to picking a franchise. Not only do they need to find the franchisor that’s best for them but they also need to prove themselves as the best person to represent the franchisor’s brand. Certainly, with so many franchises to choose from nowadays, it can be incredibly hard to differentiate between them all. It is not necessarily that franchises are good, bad or indifferent. Sometimes the franchisor and the franchisee just aren’t suited to each other. As a result, there’s as much due diligence demanded on the franchisee’s part as on the franchisor’s. 80

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I am sceptical of a potential franchisee who quickly makes a decision to apply for a franchise

From the franchisee’s point of view, it is very much about being chosen rather than choosing. I am equally sceptical of a potential franchisee who quickly makes a decision to apply for a franchise; this is a life-changing decision and it needs to be considered in full and over time. Remember it all hinges on you I am very clear with prospective franchisees that they may be joining an award-winning franchise with a superb business model and outstanding support but its effectiveness and success depends on them. They will not just get pounds flooding into their bank accounts because they have stuck a Little Voices sign over the door and done a bit of marketing. An individual needs to be focused, dedicated, committed, highly organised and determined to succeed. They need to have a hunger for continuously learning. This entails having a big vision, a plan and a daily, weekly, monthly and yearly set of targets.

Diligent recruitment processes I would be very wary of a franchisor that is keen to sell you a franchise. At Little Voices, we are very happy to turn people away if they are not right for us; a prospective franchisee needs to meet our high expectations. My top tip for anyone thinking of franchising their business would be not to rush the recruitment process as you will live to regret it.

ask about the failures Any company – both in franchising or otherwise – will have had unhappy customers or issues with their products and services. Anyone that professes otherwise is probably lying. Try to ensure that you have satisfactory explanations and reasons behind historic issues of failure or dissatisfied customers so that you have a sense of what could go wrong. If you have the full picture you know what to look out for and the pitfalls to avoid. Go with your gut The franchisor can do all the due diligence in the world but going with your gut remains a part of my decision process when recruiting franchisees. Listen to that voice inside or that niggle. Equally, a franchisee needs to go with what feels right and the people that they think they can learn most from and work best with. There are hundreds of franchise opportunities out there, so listen to your instincts.

Talk to current franchisees You wouldn’t buy a car without test driving it first and you certainly wouldn’t buy a house without having a survey. The people that will be able to tell you the truth about the business model, the support on offer and the franchisor are the franchisees in the network. They are living and breathing the franchise and are fundamental in your decision process. I would also look to see if the particular company has any awards to their name and who they were received from. On the other hand, franchisors need to be really open and upfront about their franchisees being happy to chat with potentials. Often the network makes a better interviewer than the franchisor themselves. May 2016 | elitefranchise

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ADVERTISING FEATURE

Not all franchise opportunities are created equal Will Gavan of Jani-King UK explains

et’s face it: there are a lot of franchise choices out there and an almost infinite range of industries, specialisms and business types to choose from. So how do you make that choice? It makes sense to go for a franchise with stability, one that offers you an established brand with proven recession resistance, extensive support and training and flexible startup options. So far, so obvious. But what else is out there and what else can you get? Looking around, it’s clear that not many franchise opportunities can offer gold-plated guaranteed offers of monthly All our business and immediate and ongoing franchisees are demand in every area. That’s where Janiguaranteed to King comes in. Jani-King is one of the be offered an largest commercial cleaning franchise agreed amount companies in the world and has been of monthly present in the UK for 23 years. We thrived business during the recent economic downturn and 2015 was a particularly buoyant year, generating £1.2m of new business for existing franchisees. We also won a prestigious new contract with national restaurant chain Byron Burgers last year, adding them to our existing client list that includes H&M, Wagamama, Diesel, Lexus and Mercedes car showrooms, Yo Sushi and Giraffe, amongst others. 82

So how does this benefit you? All of our franchisees are guaranteed to be offered an agreed amount of monthly business and we deliver on that guarantee. The average increase in turnover for our franchisees in 2015 was 24% (resulting in an average turnover for franchisees of £72k per month). Our best performing franchise saw their turnover increase by 55%. This surprising level of growth is directly attributable to the high level of holistic support that Jani-King provides to its franchisees. As well as delivering on the initial guarantee we know that businesses have to grow to survive, so we ensure that our franchisees have unlimited access to a dedicated locally-based sales team that is supported by a proven national sales effort. In addition to winning new business for franchisees, Jani-King’s proven system provides ongoing business management support, including customer invoicing, cash collection, customer-service calls, customer management and on-going technical training. This means there is always someone to help and you are never alone. Jani-King UK franchisees also have the added and invaluable benefit of ongoing business mentoring and support to help their franchise business achieve its potential and to give them the personal and business skills needed for each stage of business growth, including putting systems, processes and organisation in place to create a real scalable and saleable business asset. If you are keen find out how you could be part of the Jani-King success story, why not get in touch to see how we can work together to build your business for the future? Freephone 0800 917 3293 Email info@janiking.co.uk Web www.janiking.co.uk

elitefranchise | May 2016

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04/05/2016 14:25

Looking for an opportunity to become a successful, independent business owner, backed by one of the world’s largest franchised cleaning companies?

Plans start from as little as

£18,000

New franchise plans start from as little as £18,000 and go up from there in line with the investment you wish to make and the amount of guaranteed offers of business you want. Success with national accounts means we urgently need new franchisees to service existing business in: Bristol Cardiff East Anglia

East and West Midlands Yorkshire London and M25

If you are interested in becoming the next Jani-King success story why not get in touch to find out more and start the ball rolling?

“When I was looking into different franchise opportunities the one offered by Jani-King stood out to me over the competition for a number of reasons. I was reassured because it offered a proven business model with guaranteed turnover, which they delivered, and the chance to work with some well-known national brands. I am glad that I chose Jani-King, they have more than fulfilled their promises and, with their comprehensive support, I have built an extremely successful franchise business that has grown steadily, even during the recent economic downturn.” Tony Vockins, Jani-King franchisee of 8 years

Freephone 0800 917 3293 Email info@janiking.co.uk www.janiking.co.uk JKFR001 Jani King DPS.indd 2

28/01/2016 18:12

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

Could you be our next regional director? • Executive’s business – Monday to Friday • Needs an office and only 3 employees • Can build to a multi-million turnover business • Multiple income streams • Unit franchisee sales • Direct sales of commercial cleaning • Product sales • Full training at Jan-Pro University in Atlanta included in franchise fee • Up to 50% of the initial franchise fee can be paid over three years • Existing profitable business in key areas already operating in the South and South West • Sales and marketing focus – either directly or by employing a professional

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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