AUTUMN 2014
A rare gem In April 2012, Kate Lester began franchising the business she’d started 20 years previously. With a target of 40 depots and £40m turnover by 2017, Diamond Logistics is destined for sparkling success
AUTUMN 2014
£4.50
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ul f s s e c c u s t s The mo tion a r e t l a t n e garm K U e h t n i e s franchi
Who? • Are you ambitious to run your own business? • Customer driven and well organised? • Can you follow a proven business system?
How? All Zip Yard franchises are finished to a distinctive specification and you are presented with a fully operational and fully supported business with trained staff and comprehensive brand marketing from day one.
Support Includes: • • • • •
Marketing and promotion tools Group purchasing power Internet and web support Ongoing training programmes Continued concept and product development • Day to day troubleshooting
Total Cost: £38,500 + VAT plus shop fit* One-off licence fee Franchise package: - Corporate branding - Production equipment - Marketing and PR launch programme - Opening stock - Bespoke electronic point of sale system, software and computer - Extensive marketing collateral Training and project management Ongoing business support Fully fitted retail unit
“After meeting the franchisor, Nigel Toplis, we were very impressed by the professionalism of the franchise. Since opening the reaction from customers has been amazing and business is going so well that we are looking to open a second Centre, and possibly a third after that.” Richard McConnell, The ZipYard Altrincham
For further information call Emma Downes on 01530 513307 e: edownes@thezipyard.co.uk w: www.thezipyard.co.uk * The exact shop fit cost will be determined by the size and standard of the premises
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ADVERTISING FEATURE
The ZipYard offers a professional tailoring and alterations service in a clean, purpose build environment
Tailor-made for success O
ur award-winning business is all about outstanding customer service. Whilst there are no other specialist alterations and tailoring centres in the area, there are numerous businesses offering similar services and competition is great. As the top performing ZipYard, we have raised a total of 22,500 invoices. Turnover in the first year was £174,500 from 9978 customers. In the ten months to date of our second year we are at £238,000 from 12,675 customers and on track to hit our target of £274,000 by year end.
Added Value
We want our customers to believe that nothing is too much trouble. We don’t charge any extra for the express service and often carry out additional minor repairs for free. If one of the seamstresses notices a button needs replacing whilst they are turning up a hem it takes very little additional time to do the complementary work – and customers are always surprised and delighted. Frequently people come in off the street with a button that’s just popped off. We’ll fix it there and then, again for no charge, confident in the knowledge that he or she will regard us as a lifesaver and talk about The ZipYard to others.
Customer stories
We frequently see brides who have bought a
Richard McConnell being awarded Franchisee of the Year at the ZipYard Conference on Saturday 21st September 2013
dress from the internet. On one occasion a woman came in to the centre in tears with a dress that fitted terribly. By the time we had finished she was parading up and down with a big smile on her face. Another customer spent over £400 altering her wardrobe after a successful diet and an elderly lady brought in all of her clothes to be taken in - all bundled into storage boxes and carried up the high street to us. Nowadays very few people have the time or skill to mend their own clothes – and a lot of our work involves repairs - but even I was surprised when one of our regular customers brought in a pair of her son’s Y-fronts for us to fix a tear! For many of our customers we have become their personal tailors. One well-heeled man left a message on our answering machine to say his wife was bringing in a ball gown the next day so ‘please leave space on your machine’ for her. They expect a very fast service and we rarely disappoint. A regular moved out of the area but saves up his repairs until he comes back to visit friends – travelling over 160 miles for our quality of service.
The Future
Managing customer expectations isn’t easy and it has been a big challenge for us to be able to turn round work quickly as the volume increases. Recently we dealt with 90 paying
“We are all very proud of Richard and his team who have developed a great business in Altrincham – and so successful has this been that Richard has now opened his second Centre in Wilmslow which is testimony to the tremendous potential of the brand” Nigel Toplis, Managing Director
customers in one day which is ten an hour. We already open seven days a week and are looking to employ another seamstress to focus full-time on express work and have installed a second till to cope with the queues that had begun to form outside the door in busy periods. We are looking at ways to extend the range of services we offer including a paid-for delivery and collection service which will appeal to our busier user clientele. At the moment I manage ZipYard with the help of one other but I will be recruiting additional customer-facing staff to free me up to do more marketing and work on plans to open another ZipYard in the north-west. Autumn 2014 elitefranchise 3
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The Elite interview Kate Lester is a shining light in the world of franchising
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Contents.indd 1
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7 Editor’s letter 8 Contributors 12 News & events 16 Talking point 64 Franchise diaries
32
27 One to watch 27
Wagging Tails is winning awards and wooing dog-owners
32 Moving on up
Many a franchisee has an eye on the top job from the off
37 Show me the money
There are many places to turn for those looking to fund a franchise
42 Seeds of change
Franchisees have to be on board with a franchise rebrand
46 Rising stars
Franchising has proven fertile ground for the younger generation
50 Franchising futures
We take a look at the technologies transforming UK franchises
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54 Keeping your distance
Franchisors shouldn’t always pay the price for franchisee misdemeanours Autumn 2014 elitefranchise 5
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the process “of Through joining it became clear that the review of our business practices during dialogue with the bfa was also going to make a huge difference to us as a franchisor. It made us look at ourselves and improve our business.
Associate Member
�
A partnership approach The bfa promotes franchising best practice and helps franchisors meet the membership standards that ultimately provide the solid framework for any franchise business to be successful. We welcome the opportunity to meet you to find out more about you and your business and to discuss in more detail, the value your franchise will gain from bfa membership. We look forward to hearing from you on 01235 820470 or bdm@thebfa.org
British Franchise Association promoting and accrediting excellence in franchising 027-BFA-EliteFranchise1014.pdf 1
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VOLUME 02 ISSUE 05 / 2014 SALES Harrison Bloor Senior Account Manager harrison.bloor@cemedia.co.uk Darren Smith – Account Manager darren.smith@cemedia.co.uk Samuel Darcy – Account Manager samuel.darcy@cemedia.co.uk EDITORIAL Hannah Prevett – Editor hannah.prevett@cemedia.co.uk Adam Pescod – Web Editor adam.pescod@cemedia.co.uk Josh Russell – Feature Writer josh.russell@cemedia.co.uk Ryan McChrystal – Feature Writer ryan.mcchrystal@cemedia.co.uk Contributing writers Jon Card, Joe Jeffrey DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Dan Lecount Web Development Manager dan@cemedia.co.uk Marketing Kelly Dunworth – Head of Communications kelly.dunworth@cemedia.co.uk Claudia Laing – Marketing Manager claudia.laing@cemedia.co.uk Lucy Jones – Marketing Assistant lucy.jones@cemedia.co.uk CIRCULATION Malcolm Coleman – Circulation Manager malcolm.coleman@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk Colin Munday – Management Accountant colin.munday@cemedia.co.uk ADMINISTRATION Charlotte James – Administrator charlotte.james@cemedia.co.uk DIRECTOR Scott English – Managing Director scott.english@cemedia.co.uk Circulation enquiries: CE Media Call: 01245 707 516 Elite Franchise is published by CE Media, 4th Floor, Victoria House, Victoria Road, Chelmsford, CM1 1JR Copyright 2013. All rights reserved
Franchising helps women have it all
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t the age of 21, Kate Lester had a fair bit on her plate. She had both a newborn baby and a newborn business to contend with. “I conceived my business and my daughter in the same week,” she jokes. But the amount of work it takes to get a fledgling business off the ground is no laughing matter. Lester says she worked hard and fast to get her business, Diamond Logistics, to a size where she could hire in a manager and take more of a back seat while her children were young. And that’s exactly what she did. Until her kids were in their late teens, the business ticked over in the background while Lester also worked as a business consultant to keep the kids in paintbrushes and colouring books. Now they are older, she’s back to working full throttle on her business, having begun franchising the company in 2012. Self-employment and franchising in particular are great vehicles for ambitious women, Lester told me. While running your own business can be hugely demanding, there’s a degree of flexibility afforded to entrepreneurs that simply isn’t available to PAYE employees – despite the government’s best attempts to introduce flexible working. What’s more, Lester had the flexibility to choose when she really wanted to put the pedal to the metal and drive the business forward. These days, she has a happy family life and a business that will turn over £40m by 2017. Who says women can’t have it all? HANNAH PREVETT EDITOR
No part of Elite Franchise may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor. Elite Franchise will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the printing process, images can be subject to a variation of up to 15 per cent, therefore CE Media Limited cannot be held responsible for such variation.
cemedia.co.uk
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C
Adam Pescod
We’re delighted to report that Pescod is now a married man, tying the knot with his beloved Bex and honeymooning in Hong Kong and Bali, where he ticked riding an elephant and getting groomed by a monkey off his bucket list. On a sadder note, this is the last time you’ll be treated to Pescod’s cracking copy. He departs Elite Franchise to move into the world of PR at Greene King. Promoting beer for a living? We couldn’t think of anyone better for the job.
Ryan McChrystal
In a previous life, this Irish expat wrote about asset management in the Middle East. Having spent the last few months living a life of leisure – whether driving across America or exploring Essex’s many charming parks and forests – McChrystal has now well and truly crashed back to reality and is settling well into his new role filling Pescod’s shoes as features writer at Elite Franchise. In his first issue, he looks at the sources of funding available to people who are looking to buy and run a franchise.
Jon Card
Card is a freelance journalist who defies the expectations of his peers by being published in The Guardian. We’re lucky to have a double-whammy from him this month: he wrote us two features on how franchises can utilise new technology and give their offering a facelift with a rebrand. In theory, Card loves technology; in practice, he regularly forgets his passwords and says things like, ‘Wow it worked’ when using new apps. Jon Card™ has also recently rebranded and is now a registered trademark.
Emilie Sandy
When she’s not snapping our franchise stars, Sandy has proved a dab hand at business herself, working not one but two businesses: Paper & Primrose and Little Butterfly. Her son, Freddie, is shooting up in height; Sandy Junior has become something of a cheeky monkey and has proved himself a pro at stacking whatever he can lay his hands on, particularly cars. Some logistical planning might assist him with that – luckily his mum met with Kate Lester of Diamond Logistics recently for our cover shoot. Perhaps she could offer him some pointers?
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6218 - Franchise Ad_Layout 1 01/10/2014 12:21 Page 1
Turn over £828k a year with this B2B management franchise opportunity
Entry-level investment from £35,000 (licence fee £30,000) Help available with purchase finance
Our offer to you: Invest in a start-up or an existing business Your own postcodedefined territory National customer contracts with leading companies Comprehensive training and marketing support
Unique software package
Driver Hire is
People like you
Financial returns
• One of the UK’s leading specialist recruiters • A proven franchise with a 30-year record of success • Providing logistics staff to private and public sectors • Over 100 offices, supplying some 3,000 workers per day
• Franchisees from a wide range of backgrounds • No previous knowledge or experience required, but... • A passion for excellent customer service and the commitment and desire to build a successful, profitable franchised business • 93% of franchisees would buy a Driver Hire franchise again!
• Average full year franchise turnover of £828k in 2013/14 • 29% of offices achieved sales of £1m+ in 2013/14 • Low fixed costs and attractive resale values upon exit • Net profit potential of over £100,000 per annum • Opportunity to boost revenue significantly by offering complementary products
Get in touch to discover more about this fantastic business opportunity.
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www.driverhirefranchise.co.uk
01274 361073
franchise@driverhire.co.uk
AWARD WINNER - bfa HSBC ‘Franchisor of the Year’ 2006 and 2012 EliteFranchiseAutumn2014.indd 1
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The Opportunity Are you looking for a better work life balance? ✔ Always wanted to run your own business? ✔ Want to increase your earnings? ✔ Ambitious and aspirational SmartPA is the fastest growing business-to-business service provider Contact SmartPA for your FREE Discovery Pack & Consultation
t:0845 872 2262
e: info@smart-pa.com
www.smart-pa.com SMART PA DPS OCT.indd 1
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ADVERTISING FEATURE
A smart future SmartPA provides market-leading PA, secretarial and administrative support services to businesses. Co-founder Sarra Bejaoui explains why SmartPA Franchise is perfect for those seeking flexible home-working, exceptional training and revolutionary technology
A
t 16 I knew I wanted to be a business owner, the only problem being I didn’t know what that business would be. My first business plan (aged 17), a nightclub that only served water, fell flat quickly for obvious reasons. Undeterred, I started a lifestyle management business but soon realised that the real potential was in the business-to-business market. SmartPA was born, although not without its ups and downs. Determination, patience and vision are essential – success does not happen overnight. That’s why franchises are great: you can build on an already established name whilst benefitting from industry expertise and support. You also bypass the costs needed to start a business from scratch. After several years of outstanding success, SmartPA was ready to take the next steps and expand. Business mentor and coach (now SmartPA CEO), Andrew Wright, had vast experience with global licensing and advised us to franchise in order to achieve the global reach
we aspired to. and development process we are creating new The reaction to SmartPA Franchise has blown solutions to improve efficiency, productivity and us away – we are now one of the fastest growing visibility. SmartPA is benchmarking standards partnerships in the UK, specifically within the within the industry and we intend to continue female demographic aged 30-55 who wish to doing so. work from home. A key element of our success It’s such an exciting time for SmartPA: we is recruiting the right people who are just were recently bfa and FranchisingWorksas passionate about SmartPA as we are. Our accredited. SmartPA has also been developing partners aspire to deliver a phenomenal service a number of technologies which are set to and are committed to continual learning and revolutionise homeworking, not only for the development. partners but worldwide. Not only is it important Besides our recently that your team share your launched social media vision but that they must management tool, Smart also be provided with Social, we are due to the right skills, tools and release a comprehensive learning opportunities e-learning platform and needed to deliver and SmartPA Home. We pride flourish within the ourselves on always being business. Our training one step ahead of the game is the most in-depth in and looking to tomorrow’s the market and provides innovations. SmartPA’s partners with the impressive technology Sarra Bejaoui, SmartPA accreditation they need to roadmap is a testament to run their own SmartPA this. business. The brilliant thing, as well, is that you We continually support our partners and help don’t need PA experience to become a SmartPA them grow. Our promise is to help them build partner. Our partners come from a variety of on their existing success and become experts professional backgrounds and their experience within their field. brings an exciting dynamic to the team. Several Businesses of all sizes will always need of our franchisees choose to pursue corporate additional support to help with workload roles within the business, aiding SmartPA’s and skill shortage. The business community development and growth. recognises SmartPA as experts and market SmartPA is committed to remaining at the leaders within the industry so demand for forefront of the administration and secretarial our services is high. SmartPA guarantees hot sector, so we constantly review and update leads which helps eliminate uncertainty for our practices. We want to ensure that our prospective franchisees. I know better than services, tools and techniques are always fit for anyone that investing your own money in purpose in the current marketplace and for business can be scary but the rewards are our partners. Throughout this analysis, change worth it.
It’s such an exciting time for SmartPA, we were recently BFA and FranchisingWorks accredited
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WORDS: JOSH RUSSELL
There’s nothing we like more than a crumpet with our conversations, which is why the Cash Converters initiative Breakfast with the Boss sounds good to us. Designed to empower staff to introduce ideas for new initiatives, it gives Cash Converters employees a chance to sit down with CEO David Patrick over a teacake to talk about their ideas for the franchise. Thus far it has produced ideas such as free valuations for unwanted goods online and new training guides to be added to the company’s e-learning site. “The meetings are a great way to keep things fresh and new by bringing everyone together in an informal setting to see ways in which we can improve the company as a whole,” said Patrick. We’ll toast to that.
Chimneys are probably far from most people’s thoughts in the midst of a July heatwave. Which is why Wilkins Chimney Sweep is brushing up on its offering with a brand new service aimed at boosting the work available to its franchisees during the summer lull. Wilkins PowerClean brings the franchise’s scrubbing expertise to people’s patios, driveways, steps and decking, offering pressure washing to strip off the dirt and sealant to keep surfaces clear of weed growth, vehicle oil stains, lichen and algae. After 12 months of testing by franchisee Adrian Steel, owner of the North Hampshire Wilkins Chimney Sweep, the service is due to be launched at October’s National Franchise Exhibition. Seems its franchises will soon be sweeping away the competition.
We all love a new arrival, so it’s always great to hear about a new project from an established franchisor. Coming from Yoga Bellies founder Cheryl MacDonald, Birth ROCKS Academy is a new online training programme aimed at helping women learn how to provide a bespoke birth preparation programme for expectant mothers, conduct parent classes or offer pregnancy and baby massages. Targeting women who are passionate about birth and babies and looking for a new career, the online scheme will allow them to train in the comfort of their living rooms.
Typically, your birthday tends to be more about receiving than giving, but it seems Signs Express isn’t about to let tradition get in the way of a great offer. To celebrate its 25th anniversary, the sign and graphics franchise is offering a special birthday package, offering a cut-rate franchise package for new franchisees. To attract a new generation of entrepreneurs, Signs Express is cutting its set-up costs from £81,000 down to £45,000, snipping a whopping 45% off the cost of its package. Kicking off at the National Franchise Exhibition, the deal should hopefully provide new franchisees many happy returns.
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After much waiting with bated breath, the winners of the bfa HSBC Franchisee of the Year Awards 2014 have finally been revealed: top dog was Tina Young, Northumberland franchisee of Barking Mad, the dog boarding franchise, who collected both Franchisee of the Year and Microbusiness Franchisee of the Year, as well as a cool £11,000 from HSBC in recognition of all her hard work. Other well-deserved gongs awarded include Young Franchisee of the Year for Aaron Stewart, Marston’s Sheffield & Mansfield, Olderpreneur Franchisee of the Year for Terry Lucking, Belvoir Peterborough & Cambridge, and Female Franchisee of the Year for our very own Franchise Diaries columnist Rachel Shaw, Subway Thornton Heath & West Wickham. Hearty congrats to all involved and here’s to another year of awardwinning franchise ownership.
Upcoming Events bfa Prospective Franchisor Seminar October 22 Offices of Wragge, Lawrence, Graham & Co, Two Snowhill, Birmingham B4 6WR
bfa Prospective Franchisee Seminar October 23 Offices of Wragge, Lawrence, Graham & Co, Two Snowhill, Birmingham B4 6WR bfa Specialist Seminar: Franchisee Recruitment October 28 British Franchise Association, 85f Park Drive, Milton Park, Abingdon OX14 4RY
It seems Suit the City has designs on a wider market with the brand-spanking new product that it’s rolling out to its franchisees. Through some new partnerships, the bespoke suit-tailoring franchise is now offering designer shoes courtesy of Oliver Sweeney and striking linings by Business Punks to really give customers’ dress that extra pop. Carol Rawson, the franchise’s director, explained: “We want our people to feel excited and knowledgeable about making clients look good in their clothes and details make all difference – a little flourish on fitted shirt, a matt finish on a set of cufflinks or those outfit-completing shoes.” Sounds like the perfect fit for franchisees with a flair for fashion. Magical Maths is having a spell of good fortune. The maths
tuition franchise has exploded in the last six months and has signed 42 territories from Liverpool to the Isle of Wight. It estimates it will reach 100 by December this year, with coverage spanning the bulk of the UK. Meanwhile, established franchisees in Essex and London are finding themselves in such demand that they are having to turn away business. Given the unprecedented growth it has seen across the country, the franchise merits some close watching over the coming months to see what else it has up its sleeve.
Women Working Well November 20 Eastwood Hall Mansfield Road, Eastwood, Nottingham NG16 3SS Prospective Franchisor Seminar November 25 Offices of Bird & Bird, 15 Fetter Lane, London EC4A 1JP
Prospective Franchisee Seminar November 26 Offices of Bird & Bird, 15 Fetter Lane, London EC4A 1JP A full event listing is available on our website: elitefranchisemagazine.co.uk/ events
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ADVERTISING FEATURE
A five-star initiative Business research firm Smith & Henderson recently released the results of its innovative 5 Star Franchisee Satisfaction programme. Its aim is to truly identify exceptional franchises from the point of view of an investor. It reviewed which franchises stood out and what this new transparent method of evaluation could potentially do for investors
I
am sure you will agree, transparency in the franchise industry is crucial; it’s what everyone is looking for. One of the largest problems quality franchise operations have faced since the start of franchising has been putting clear distance between them and other poorly run operations posing as franchises in the eyes of an investor. Now, thanks to a ground-breaking idea from Smith & Henderson, the research firm, franchising has entered a new age of ultra-transparency – allowing only the best businesses to come out on top. Smith & Henderson’s 5 Star Franchisee Satisfaction programme identifies the best franchise operations in the UK by talking to the people who know them best – existing franchise partners. In 2013, over 2,000 franchise partners were asked to confidentially provide information about their franchisor on a multitude of different areas to find out what the support is really like for those benefitting from it today and how it has compared with their expectations before going into the business. Steven Frost, managing director of Smith & Henderson explains: “5 Star Franchisee Satisfaction is based on this principle. Each year, we ask thousands of actual franchisees to rate their franchise partnership experiences. We guarantee that their answers are confidential so they give honest feedback. We then award 5 Star Franchisee Satisfaction to franchisors that receive above average feedback in all five areas that we measure.” Analysis is thorough enough to ensure that only the best Franchisors receive the 5 Star award. The first step for franchisors wanting to be assessed is that they register their details
online, all contact details for existing franchise partners must then be provided, in order for research to take place. Once the businesses are registered, all franchise partners are invited to give 100 per cent anonymous feedback in an online survey. The anonymity ensures franchise partners can be honest without fear of repercussions. The online survey consists of 30 questions and covers five main areas, including training/ support, the franchise system, franchisor relationship, franchisor leadership and overall satisfaction. This year’s winners in order were ActionCOACH Business Coaching, Helen O’Grady, Home Instead Senior Care, Little Kickers, McDonald’s, Music Bugs, Platinum Property Partners, Puddle Ducks, Tatty Bumpkin and TaxAssist Accountants. All of these brands can now boast genuine franchise partner satisfaction in accordance with Smith & Henderson’s firm valuation. Ian Christelow, managing director of ActionCOACH UK said of the award: “I feel honoured to be part of a company with such an amazing team of franchise partners. To win the prestigious 5 Star Franchisee Satisfaction award as a result of our team’s positive
“I feel honoured to be part of a company with such an amazing team of Franchise partners” Ian Christelow, Managing Director of ActionCOACH UK
ratings and comments makes everything we strive to achieve thoroughly worthwhile. ActionCOACH is a referral-based business and building a team of delighted franchise partners is and needs to stay front and centre of everything we do.” The research process is arduous and obtaining the results of the 5 Star Franchisee Satisfaction programme takes careful analysis. But for those qualifying brands, the label is a rubber stamp of approval for continued quality in the industry. Steven Frost continues: “There are hundreds of franchise opportunities currently being advertised and it’s difficult to stand out from the crowd. Receiving the 5 Star Franchisee Satisfaction award helps to differentiate your franchise from the competition, demonstrates the level of support you provide and helps build trust with prospective franchisees.” Franchise operations that achieve the soughtafter award can provide additional evidence in the form of third party analysis, showing that everything they promise in the lead up is 100% accurate. More importantly, people looking for a franchise can be sure that a 5 Star business
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ADVERTISING FEATURE
L-R: Ian Christelow, ActionCOACH; Steph Jones, ActionCOACH; Stephen Frost, Smith & Henderson
is one with many happy franchise partners already in existence, which is sometimes difficult to tell. “Franchisors that have recently been awarded 5 Star Franchisee Satisfaction have on average, happier and more satisfied franchisees,” says Frost. “While nothing guarantees that a particular franchise is a good fit for you or that you will be successful, franchisors that have recently been awarded 5 Star Franchisee Satisfaction are a great place to start.” Frost points out that looking at 5 Star franchises is definitely a good idea but adds that there are other important factors to consider. “There are some other important considerations like evaluating if you have what it takes to run your own business, what you are passionate about and researching the market that the franchisor serves,” he says. “In addition, before investing in any franchise we strongly recommend that you receive professional legal advice from a bfa-accredited franchise lawyer. “Knowing a franchise has 5 Star satisfaction will of course give people confidence in what is perhaps a very new sector to them.” This year’s presentation evening for the prestigious 5 Star Awards was held alongside
the Best Franchise Awards, which recognises several outstanding brands. The evening, sponsored by Franchise Development Services, brought famous faces of the franchise world out in force and was a celebratory evening for the positives that franchising brings to the wider UK economy. Frost adds: “We received exceptional feedback from franchisors receiving the awards, franchisors who are yet to participate in the programme and prospective franchisees.” Smith & Henderson has a bright vision for the awards as a way in which excellent franchise operations can distinguish themselves from other, lower quality businesses. Frost concludes: “In the last few years, we’ve seen a new level of transparency when booking a holiday, buying a car or even a vacuum cleaner, thanks to websites like Trip Advisor and organisations like Which? Our vision is that 5 Star Franchisee Satisfaction will bring the same level of transparency to franchising, helping outstanding franchisors stand out and helping prospective franchisees to make better-informed decisions.” For franchisors and investors alike, 5 Star Franchisee Satisfaction is undoubtedly important.
“ActionCOACH is the only franchise company I know that will offer a written guarantee to the right candidate that his or her investment is safe (as long as the investor does the marketing and uses the ActionCOACH system of course). When they say the right candidates can earn £50,000 a month, I know it is true, and not hype.” Michael Angel Plaza, CEO, CompareTheFinancialMarkets If you would like more information on the ActionCOACH, Business Coaching Franchise then please call Rainy or Sam on: 01284 701 648 Alternatively you can watch the six minute overview video at: www. actioncoach-franchise.co.uk/overview
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Helga Esteb / Shutterstock.com
Greater autonomy leads to greater productivity
Happy holidays Richard Branson has announced he’s giving staff at Virgin’s UK and US headquarters an unlimited holiday allowance. No doubt they’re happy with the news but does it make good business sense?
WORDS: Ryan McChrystal
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f you’re lamenting the end of summer and worried you won’t see the sun again for another year, you’re probably dismayed at the news that head honcho at Virgin, Richard Branson, will allow staff to take as much holiday time as they want with no questions asked. The only catch being that they can only jet off when they are sure they and their team won’t suffer or lag behind as a result. It can’t affect the business – or their careers. Branson says he got the idea from his daughter, who heard about a similar plan at Netflix. The on-demand media streaming service rolled-out a plan in 2010 whereby salaried employees could basically wander off without their hours being tracked or asking permission as long as they got the job done. This idea may sound like a workplace-utopia in the vein of sleeping pods at Google; both are designed to make employees more comfortable and therefore more productive. But, as a policy, unlimited holiday is laced with the risk of potential abuse. It has certainly gotten the staff here at Elite Franchise talking but is Branson’s generosity a dangerous corrosion of the workplace or a crucial and courageous shift in mindset?
To allow staff to take as much holiday as they like, any time, without approval is a great idea for Branson, who has clearly built Kate Legg associate, Higgs & Sons a team he trusts implicitly. But it may not work quite so well where the relationship between employer and employee is less collaborative. The foundation stone of the policy is that Branson trusts his employees to only take time off if it does not harm the business. In other words, staff are responsible for ensuring cover is available and that the work still gets done on time. This policy is in line with current thinking that giving staff greater autonomy leads to greater productivity. It is a clear incentive to work harder earlier in the week in order to take a long weekend. Overall, this could lead to higher levels of happiness and job satisfaction; some recent studies have shown that happiness is a much more important factor in predicting success than traditional qualities such as qualifications or experience. There is also a self-regulating mechanism in that staff won’t want to let their team down and leave their colleagues high and dry. There is, however, a risk that employees may never feel able to take time off – that their work is never quite finished or that they don’t want to leave colleagues to cope without them. But I suspect the greatest barrier to the policy becoming widespread is the leap of faith needed by employers to trust employees not to abuse the policy.
Small businesses can really struggle for time Richard Branson’s proposal is innovative. But one of the issues for me is the idea of an employee taking time off when they feel Sharon Bassett 100% comfortable they are up-to-date with co-founder & director, work and that the business will not be A-Star Sports affected. Each individual’s interpretation of ‘100% comfortable’ varies – colleagues may have a different view on the work done and the position they’re being left in. So much more communication would be required for this non-policy to be effective. In the context of small businesses, especially those that are customerfocused and built on strong relationships with specific timetables and not just deliverables, it’s not likely to be viable. Small businesses can really struggle for time and resources, so the ‘whenever they want for as long as they want’ would pose a huge problem because there may only rarely be a practical time when a team member’s absence would not damage the business. Some small businesses only just scrape by with a very organised/planned approach to holiday leave. Having said all that, Branson is talking about a much larger organisation, which has the staff and resources to sustain this flexible approach. But the key will always be that ‘they’re up to date on every project and their absence will not damage the business’, and the rest of the team can cope with any unexpected changes that impact on time and resources during a colleague’s absence.
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A CUT ABOVE Logistics has not typically been considered a female-friendly industry. But Kate Lester says her feminine traits have helped her create a business built on teamwork, ethics and respect
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ne afternoon, Kate Lester, founder of Diamond Logistics was working in her Guildford office when there was an unexpected interruption. “I was wearing a pair of bike leathers, bent over a filing cabinet and someone walked in, spanked my arse and asked, ‘Where’s the boss?’ I replied, ‘You just smacked her arse, so F-off,’” says Lester. Sexism is rife in the logistics business, she explains. But that doesn’t mean that women should be afraid to be women. “A bit of elegance, respect and decorum can go a long way. It’s very important for us to retain our differences and bring an entirely different perspective on things. I’ve had hairy-arsed lorry drivers trying to scream at me at the tops of their voices, and when I touch their arm and say, ‘Listen, would you talk to your wife or daughter in this tone or manner?’, they’ve said, ‘No’, and I’ve said, ‘I suggest you don’t do it in this depot either.’” It seems particularly ironic that Lester began a business in a male-dominated industry, considering her father chose to move the family to the UK from Perth,
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western Australia, because “he thought the misogyny of Perth wasn’t the best place to bring up three ambitious daughters”. Lester’s parents had moved Down Under in the 1960s and after 25 years returned to Blighty with Lester, then aged 15, and her two sisters. The transition was difficult. “It was a horrible time to come over here,” she confides. “I was taken out of school at a time that meant I was too late to join GCSEs and too early to join A-levels. I found it difficult to make friends; we moved to the southeast of England, which is not really known for its sociability.” After taking her A-levels in economics, English literature and history, she took a gap year in which she says she became “a bit addicted to the green stuff”. The lure of money meant she never enrolled in the course she’d been accepted to study at the University of Sussex. “I had a couple of jobs working for different organisations where I probably had ideas well above my station,” says Lester. “I was really working on the team effort and trying to help bring everyone forward together but people would steal your ideas or you wouldn’t get promoted because people thought you were just an 18-year-old. So my ambition had always been to do something of my own but while I was finding my way I did everything from cleaning to working in a pub.” She had also been inspired by her parents, who had both demonstrated entrepreneurial flair. Her mother had owned a boutique in Perth, though joined the NHS when the family relocated to England, and her father had always owned his own business. “He was frequently locked in his study until 10 o’clock at night,” says Lester. “I followed my father’s footsteps. I’ve got a similar temperament to him; I don’t mind the long working hours and I’ve got quite a thick skin.” At 20, the opportunity arose to make her own mark. “I was working for a courier company that wasn’t doing very well and just as they went bust I approached their major client and said, ‘If I take this on and a couple of couriers, will you still work with me?’ They said yes – that was in March 1992, and the rest, as they say, is history.” Only it wasn’t quite as easy as Lester makes it sound. When Diamond Logistics was in its formative stages, she had two very small
We’re not doing this to flog franchises; we’re doing this to build the best courier network in the UK
THE ELITE INTERVIEW
children on her hands. “I conceived Chloe and the business in the same week,” she jokes. Chloe, now 21, is studying geology at Imperial College London, while younger brother Oscar, 19, will shortly begin a degree in art and art history at Plymouth University. “Self-employment is a marvellous machine for women to work and have children – and balance both of them,” Lester enthuses. “I don’t know how women who have PAYE jobs cope with having children.” Running her own business allowed Lester to focus on raising her children while also earning a good living, which was crucial as she was the only breadwinner, having been divorced three times. Starting the business was tough, says Lester.
Self-employment is a marvellous machine for women to work and have children – and balance them both
“Rookie error number one: I had no money. I literally had to start the business and live off it straight away. My earnings in the first year were £5,000 and even in 1992 that was a pauper’s salary.” While the business ticked along under the watchful eye of her management team, Lester set up a lucrative consultancy where she’d offer advice to other entrepreneurs setting up their businesses or help to turn failing companies around. The business continued to grow organically while Lester raised her kids and undertook consultancy contracts. At the beginning of 2011, she was doing some work for a company in Surrey. “I had taken them from £5m to £8.5m, brought them back into profit and totally transformed their performance
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Everyone we choose has to be someone we’re prepared to do business with for a longterm period
statistics,” she explains. “I had been offered a share deal by the proprietor and therefore worked over and above the odds for a six-month period. But by the time it got to the May or June, I just thought, ‘Oh my God, he’s going to shaft me.’ And he did. He bailed out of the share deal.” The upside was that it provoked something of an epiphany. “I just thought, ‘When are you going to stop doing this for other people, Kate?’ All of this going into other people’s businesses had meant I’d really taken my eye of the ball at Diamond. When I took a long, hard look at what I’d achieved at Diamond, it was nowhere near to satisfying my personal ambition and it was nowhere near what I was capable of. I’d just got caught up in the whole thing of earning lots of money and keeping my children in the manner to which they’d become accustomed,” she says. Reading the book Rich Dad Poor Dad by Robert Kiyosaki in June 2011 forced a shift in Lester’s mindset: “I started thinking about turning the business into a valued asset [the creating, owning and selling of valued assets and not merely being an employee is one of the central tenets of Kiyosaki’s book]. In 18 or 19 years of working, I had a business that was turning over bugger all; it wasn’t worth that much – especially given all of the effort I’d put into it over the years.” First of all, this meant waving goodbye to the consultancy money. “It was difficult giving up that cash. I had to say goodbye to six figures a year and that was painful. But if I didn’t, I was never going to have the kind of asset that Diamond could be.” She also poured in her own cash reserves. “Divorce number three was really bad: he was going to take me to the cleaners anyway so I thought, ‘Fuck it, I’ll put all of my money into the business.’” So Lester set about turning Diamond Logistics into a valued asset, and franchising
was going to be the means by which she did it. The first pilots were in Bognor Regis and Southampton. “That formed the avatar of what our franchises would look like in the future. It’s important that people have a lot more money than we had in the beginning – which was nothing – to start their business because we want them to spend money on sales and marketing, we want them to follow a formula.” After all, Lester has grand designs for the franchise. “There’s no point establishing a load of little, local courier companies. We’re not doing this to flog franchises; we’re doing this to build the best courier network in the UK.” This means making sure every single franchisee is the right one, she adds. “Everyone we choose has to be someone we’re prepared to do business with for a long-term period. We’re building a business with them in a real partnership sense: they share our ethics, mission and values. That’s very much based on our shared success principle. You cut through my arm and it will have shared success through the centre, like a stick of rock,” she states. Shared success is all about partnerships and collaboration – a novel idea in an industry that’s known for “big companies milking the masses”. The quality in the work comes from the quality of the team, says Lester. “Franchising was a way of capitalising on that quality because we didn’t have access to a lot of money. I did it without any help from the bank at all. I had a terrible bank at the time and they were very responsible for holding us back between 2001 and 2008.” These days,
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Diamond is a very happy Metro Bank customer. “When I came across Metro, I couldn’t believe that a) they were normal people and b) they didn’t seem like wankers. You know what banks are like,” she says. Lester admits that her foray into franchising has been a steep learning curve. “People ask why, at 20, I started a courier company and I say it was naivety and belief. This whole franchising thing was naivety and belief as well,” she says. Still, it certainly hasn’t held her back. “We’re in the process of securing bfa accreditation and we’re going to reach critical mass next year.” She’s also tweaked and refined the necessary literature for new Our original franchisees. “My first goal was to franchise agreement was probably half a centimetre achieve £40m thick and the legal document was written on the back of an turnover but A4 piece of paper. My new we’ll probably franchise bible weighs half a kilo and the legal document exceed that has a hefty thud as it lands on a desk.” Lester may have been a franchising newbie alongside the growth of the firm’s franchise when Diamond delved into that world but network. “Our original goal was to achieve there’s nothing wrong with learning on the £40m turnover but we look like we’ll probably job, she says. “If we’d waited until we’d exceed that now,” says Lester. perfected the art of franchising or waited until International expansion could well be on the we’d perfected the art of replicating our cards too, with conversations taking place business, we would have launched too late.” between Diamond Logistics and people The core business has evolved too. Once a interested in franchising opportunities in same-day courier specialist, Diamond now America and Ireland. Happily, Lester is a keen offers overnight and international deliveries as traveller, though she can more often be found well as warehousing services. “That gives us heading east for her holidays. “I love travelling, the stability of a three-legged stool,” says particularly to southeast Asia,” she says. Lester. “We’re diversifying into related areas Lester’s experiences in countries such as which are very complementary and it means Cambodia, where people have experienced we can be a one-stop logistics solution.” appalling hardships, have informed the way Diamond’s client base is hugely varied: from she thinks and acts – both at work and at kitchen-table start-ups that need a total home. “I adore Cambodia. It’s one of those logistics solution to blue-chips such as Rolls places where you feel so grateful for the Royce, John Lewis and Maclaren, which may opportunities over here. The people were left just take advantage of one or two of the core with nothing and yet they retain enormous services. At the moment, the company is positivity, happiness and hope. I think we carrying out between 5,500 and 6,000 learn such great lessons from visiting that part deliveries a week but this is escalating rapidly of the world. It’s a real humbler.” 22 elitefranchise Autumn 2014
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Every cloud has a silver lining Franchise cost £15,000 + VAT Set up costs £1,000 + VAT
Since its launch in 2010, Cloud Bookkeeping has won Best Growing Franchise sponsored by Lloyds Bank twice, voted for by their own network of franchisees and a panel of franchise industry specialists.
franchisees with marketing, sales, IT, operations and bookkeeping. Our unique Prism process system of workflow templates and checklists helps our bookkeepers and their clients know they are delivering a quality controlled service. The Cloud Bookkeeping franchise has been set up so it can run as a management-style franchise but it is left to the franchisees to determine ith over 20 franchisees across the UK, Cloud Bookkeeping when they are ready to take on processors to do the basic bookkeeping offers bookkeeping services, using the most up-to-date cloud as their business expands. Head office now has a processing centre to software and is growing at a fast pace. The founder Mandy support the franchisees as they grow so that they do not have to take on Bagot, a qualified certified accountant, who trained their own employees. in both industry and practice, is a cloud technology The franchisees all get together for quarterly Our 6 franchise enthusiast, researching and developing new cloud development days at head office where they have products for her Cloud Bookkeeping franchisees on sales training and representatives manuals and 10 day seminars to use themselves and to offer to their clients. “This from the software companies come in to show training programme them the latest updates and then they all go to gives us an edge over our competitors,” says Bagot. “With the ever changing cloud solutions we have dinner together afterwards. helps our new to keep on our toes and ensure we are aware of all the latest bookkeeping software on the market franchisees with and that we do not need to turn work away. This marketing, sales, makes us attractive to potential clients and is one of our USP’s. We also work closely with the software IT, operations and companies. We are launching our new website bookkeeping comparethecloudsoftware.com to help clients with their cloud solution decision making and to show them what is available at a price they can afford. People who join our franchise do not need to be qualified bookkeepers because we give full training. They just need to like numbers, be analytical and have an avid attention to detail, like to solve puzzles and want to meet business owners at business breakfast meetings. Our six franchise manuals and ten day training programme helps our new
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ADVERTISING FEATURE
Case Study Damien Cassidy – franchisee, Solihull Cassidy had spent over 25 years as an internal auditor with the National Grid when a re-organisation was announced; he decided it was a good time to reassess his career. He came across an article about franchising whilst on a flight to Belfast to visit family. He liked the idea of starting his own business within an established structure and with support and decided to look into it more. Cassidy started looking for franchise opportunities that would let him be his own boss and improve his work–life balance. “I actually looked at a few different franchise businesses,” says Cassidy. “My wife is a qualified nurse, so this included care homes and domiciliary care.” Cassidy attended a franchise exhibition at the Birmingham NEC. It was there that he met Mandy Bagot, Cloud Bookkeeping’s founder, for the first time. Cassidy was immediately impressed by Bagot’s enthusiasm and passion for what she does. After taking voluntary redundancy in February 2014, he decided to invest into a Cloud Bookkeeping franchise. Why did Cassidy choose Cloud Bookkeeping? He explains: “From day one I’ve found Mandy and her team to be incredibly supportive. And that’s matched by the training and support materials Cloud Bookkeeping you receive, like the Prism process templates. clearly put a big It makes running your emphasis on business so much easier, and the cutting-edge providing a firsttechnology is also a really class service, good selling point to and that’s very clients.” Like many Cloud important to me Bookkeeping business owners, Cassidy recognised a dedication to service that sets the brand apart from its competitors: “Its appeal wasn’t just that I had a background working with numbers. They clearly put a big emphasis on providing a first-class service, and that’s very important to me. I want to make a difference to my clients.” Although Cassidy only launched his Solihull-based Cloud Bookkeeping business in March, he has already landed his first clients. And he has no doubts that becoming his own boss was the right decision. He concludes: “I knew I wanted to buy into an established name with a proven track record. Cloud Bookkeeping has all this and more. I’m already starting to see the benefits of the Cloud model and, although it’s still early days, I’m confident I’ll be able to achieve the work-life balance I’ve been seeking. “Which hopefully means more time at home and getting to watch a lot more cricket!”
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Cloud Bookkeeping DPS OCT.indd 2
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www.wokandgo.co.uk EliteFranchiseAutumn2014.indd 1
02/10/2014 18:00
ONE TO WATCH
While the awards won by dog-boarding franchise Wagging Tails are a real vindication of its approach, for co-founders Lisa and Jim Suswain, the company’s success is all about placing the needs of dogs first
WORDS: JOSH RUSSELL
IMAGES COURTESY OF WAGGING TAILS
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or a dog owner, there are few things more stressful than leaving your precious pup behind when you go on holiday. While most kennels provide a degree of one-on-one time, knowing that while you’re enjoying sun, sea and surf your canine companion might be sat on their own for hours on end makes it hard to really relax. Fortunately, Wagging Tails, a dog-boarding franchise with a difference, knows that happy dogs make happy owners. Wagging Tails co-founder and managing director Lisa Suswain is certainly no stranger to the spotlight. “I was a professional ballet dancer; I’m ex-Royal Ballet,” she explains. After an injury forced her to retire, she worked in a handful of customer-service positions for institutions such as NatWest, but she was eager to take on something a little more fulfilling. “I realised how lucky I’d been when I was dancing to be doing something I enjoyed, rather than having to go out to work just to earn a living,” she explains. And she didn’t have to look far to find her calling; when asked by Jim Suswain, her future husband and co-founder, what she enjoyed doing, the answer was inevitable. “My parents breed and show cocker spaniels, so dogs have been part of my entire life,” Suswain explains. Whenever Suswain’s parents went away, she and Jim would board their dogs; they had also begun to offer the same favour to friends and look after their dogs in a friendly, homely environment. And while they were aware of other dog-boarding services, there seemed to be few that truly put the dog’s happiness and comfort first. “It was spotting that gap in the market and thinking, ‘Here’s my opportunity to do something I really love,’” she says. Despite this, at the time, the Suswains didn’t have designs on a huge national business. “It was very much never intended to be this big,” Suswain says. “It was only ever meant to be something for me to do.” Autumn 2014 elitefranchise 27
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ONE TO WATCH
Dogs are used to company and people around the house, so being left in a cold, dark kennel can be very stressful
But after a few ads went up in Post Office windows, word began to spread and suddenly demand rocketed. To ensure dogs are happy in their holiday homes, Wagging Tails will only board one family’s dogs in each home at a time and this meant it wasn’t long before Suswain had to take on additional help. “Within a couple of months, I was taking on a team of carers,” she says. “They were all people like myself; very experienced past owners who just love dogs’ company.” Wagging Tails continued to grow exponentially and it gradually became clear that only franchising would allow it to start offering enough coverage to satisfy the demand. “We had owners travelling from around the country,” Suswain says. Even now, dog owners will happily travel hundreds of miles for the peace of mind that comes with having a Wagging Tails carer board their dog; owners have even come from as far away as Spain to utilise the service. “There are other franchises there but they’re not offering the service that dog owners want,” she says. “It was just reacting to that demand really and franchising was the best way to be able to expand the business without compromising.” What sets Wagging Tails apart from its competitors is that the franchise recognises effective dog boarding needs to start from seeing things from the dogs’ point of view. “The majority of dogs are family pets; they live in a family home,” says Suswain. “They’re used to company and people around the house, so being left in a cold, dark kennel can be very stressful.” A form of care that still gives them plenty of contact with a family can change a challenging separation from their owners into a positive experience for the pups involved. The way Suswain developed the Wagging Tails offering was heavily influenced by her own experience both as an owner of dogs and an expert in their behaviour; she has experience in a range of dog-related
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ONE TO WATCH
subjects and a diploma in dog behaviour. “I built it from a dog lover’s point of view,” she explains. “‘As a dog owner, what do I want for my own peace of mind?’” It was through this understanding of dogs and their owners that she came up with a key part of the Wagging Tails offering, one that ensures dogs, owners and carers are all happy with where the dog has been placed. “Owners and dogs get to go for what we call a ‘sniffing out’ meeting,” she explains. The opportunity for owners and their dogs to check out their potential holiday home comes with myriad benefits; not only does it put the owner’s mind at rest that their dog will be staying in a happy home but it is also of huge benefit to the dog itself. “They’re very clever; their sense of smell is extraordinary,” says Suswain. “And that’s why we call it a sniffing out meeting – the dog can have a good sniff around its holiday home.” Getting time to ensure its home is up to snuff means that when it returns the dog is entering a familiar environment. “Because of that, we’ve never had an issue of a dog not settling.” Unsurprisingly, in light of this, Wagging Tails proves immensely popular with owners and dogs alike. Regular customers become champions of the franchise. It has vets and dog trainers not just recommending the service professionally but becoming loyal customers themselves. The franchise was also the subject of a recent spread in Dogs Monthly, the UK’s biggest dog magazine, because everyone the publication spoke to about dog boarding pointed it toward Wagging Tails as the one to watch. “It’s great because that’s not us talking about it; we’ve got owners, pet professionals, journalists talking about it,” she says. “That’s really the best recognition: when you’ve got other people shouting about you.” Franchising has played a key role in helping the business secure this success but what makes a great Wagging Tails franchisee? “Somebody who’s dog mad,” laughs Suswain. Good management skills are an essential part of running a Wagging Tails franchise, particularly when you take into account the fact that a franchisee might be managing up to 50 carers and several hundred dogs. But the most important thing for Suswain is that franchisees understand what owner’s concerns are. “We insist all of our franchisees are actually dog owners,” she says. “A lot of them actually found out about us by looking
for an alternative to kennels. Being dog owners themselves gives them that additional empathy and understanding of what a dog owner is looking for.” In return, the franchise offers those passionate about canine care a full package of support, including lots of editorial and marketing resources. Guiding franchisees through the process and providing them with up-to-date resources is a key part of ensuring they can continue to reach and serve pet owners. “I do hear horror stories about franchisees who are told, ‘Here’s everything, now get on with it,’” says Suswain. “We don’t do that.” The efficacy of this approach has been demonstrated by the fact that last year Wagging Tails won a Franchise Marketing Award for Best Franchisee Marketing Support. And this isn’t the only gong that the franchise has collected. “We won Franchisor of the Year at this year’s NatWest EWIF Awards and one of our franchisees won Franchisee of the Year as well; it was a good day,” Suswain laughs. The accolades are still coming in thick and fast: one of Wagging Tails’ franchisees is currently up for a Pet Industry Federation award for Best Pet Service, while a male franchisee is up for a Mum and Working Award for Most Inspiring Business Parent. “All of our franchisees come from a variety of different backgrounds but with the support and the structure of Wagging Tails they can all be very successful, be it in franchise awards, local awards or pet industry awards,” says Suswain. But Wagging Tails isn’t letting awards season distract from its mission of making sure dogs have a homely environment in which to stay when their owners are away. “At the moment, we’ve got dog owners who are literally travelling hundreds of miles,” says Suswain. The franchise’s aim for the next couple of years is to ensure there is Wagging Tails within easy reach of their home. “The idea is to continue to grow so that all dogs can get the opportunity of having a Wagging Tails holiday and owners get that peace of mind that they really do deserve,” she concludes.
That’s why we call it a sniffing out meeting; the dog can have a good sniff around its holiday home
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ADVERTISING FEATURE
The perfect match Mr Franchise, a matchmaking service for prospective franchisees established in 2012 by Iain Martin and Brian Armstrong, is going from strength to strength. With a company-owned unit operating from Stourbridge, and two franchises in the north west, Martin & Armstrong believe that now is the time to roll out the business nationwide
M Iain Martin, co-founder & director, Mr Franchise
Brian Armstrong, co-founder & director, Mr Franchise
r Franchise’s vision is to establish a network of 50 franchises across the UK, each serving its own community. Each local consultant will provide information on all aspects of franchising (either directly or by referral to others), and will deliver the matchmaking service personally. Unlike other brokerage services operating in the UK, the Mr Franchise business is based on working face-to-face with prospective franchisees, enabling the consultant to build a more complete understanding of a candidate’s attributes and aspirations, leading to a better success-rate when making introductions to franchisors. The methodology used by the business is well proven, and includes an innovative online profiling tool, which has been customised for Mr Franchise. Mr Franchise is now part of the Parable Group, which has business interests around the world, and brings valuable additional expertise and resources to the company. Development plans include recruiting another six to eight franchisees this year, ideally in geographic locations that will give the business a genuine national presence, meaning that marketing can be ramped up accordingly, resulting in a significant increase in candidates profiled and successfully placed with franchisors. David Nelson, who was the ‘founding franchisee’ for Mr Franchise, has been working closely with Martin & Armstrong to refine the business system, particularly the ways in which prospective franchisees are identified through referral marketing. Nelson has a strong background in franchising, having been a Concept Building Solutions franchisee for a number of years. He is passionate about the benefits that franchising can bring to the right individuals if they understand what it means, and get involved with the right franchisor – hence the Mr Franchise vision struck a chord with him. Kathryn Orange, the second franchisee, came on board as a result of going through the Mr Franchise matchmaking process with Nelson. Orange has extensive local community contacts, high level commercial experience, and wanted to be involved in a business which puts something back into the local community – Mr Franchise fits the bill
perfectly for her. One other slightly unusual aspect of the Mr Franchise model is that 2.5% of franchisee revenue is given to local charities; these are chosen by the franchisees, and typically will support young people in particular to fulfil their potential in the workplace. Franchisors pay a fee for the service, once a franchise has been awarded to a candidate introduced by Mr Franchise; in addition, candidates are charged an initial fee to take advantage of the matchmaking service but this is refunded in full when a franchise has been awarded. Therefore, in line with best practice, Mr Franchise receives payment from one party only; thus ensuring that candidates are fully committed to the process, and should they not proceed for any reason, the consultant receives some reimbursement for time and effort expended. Whenever the business is discussed with those involved with creating new business at the local level, they are, almost without exception, surprised that this type of service has not been provided before, and have welcomed it with open arms. The focus is very much one of reaching out to those who aspire to be self-employed and, through education, guiding them towards franchising, if that’s going to be the best option for them. The future certainly looks good for Mr Franchise, and its growing network of franchisees.
The focus is very much one of reaching out to those who aspire to be selfemployed
30 elitefranchise Autumn 2014
Mr Franchise Autumn.indd 1
03/10/2014 11:01
Become a franchise Matchmaker Business Ownership Made Easy
With the desire of individuals to take control of their own lives, business ownership has never been more popular, and acquiring a franchise represents a low-risk way to achieve this goal. The challenge is knowing which one... This is where Mr Franchise comes in. Our matchmaking model is now proven, and with franchisees operating in Cheshire and Lancashire, Mr Franchise is ready to offer suitably qualified individuals the opportunity to become one of our local franchise directors. If this is for you, you are likely to be well-connected in your local community, enjoy meeting people and networking, have good commercial experience, and want to run a homebased business where you control your diary. Total investment is under ÂŁ25,000, but you will need additional funds to cover living costs until your business becomes established. Contact Mr Franchise today for a copy of our prospectus, and to find out how you can help others achieve franchising success.
Call us on: 01562 261162 Email us: iainm@mrfranchise.net Or visit us online: www.mrfranchiseuk.com Mr Franchise Limited, Wassell Grove Business Centre, Wassell Grove Lane, Stourbridge DY9 9JH
Mr Franchise FP July14.indd 1
01/07/2014 22:28
ANALYSIS
STEPPING UP While it may look a tall order on the surface, assuming the role of franchisor shouldn’t be too taxing for those with prior experience of operating as a franchisee. Indeed, many franchisees have their eyes on the big job from the outset
I
WORDS: ADAM PESCOD
t’s been well-documented why so many people with aspirations of business ownership buy into a franchise instead of starting their own enterprise from scratch. More than anything, it offers the best of both worlds: the chance to run a business but without the pressure of having to go it alone. “We work in a very brand-conscious world these days and unless you have a unique idea for a completely new business, you’ll struggle on your own to set up something that’s already being done by other brands,” says Simon Bartholomew, franchise director at Oscar Pet Foods and chairman of the British Franchise Association (bfa). “For instance, if you really wanted to be your own hamburger restaurant, you are always going to struggle unless you partner with one of the big brands.” Of course, this isn’t to say that franchisees lack the ambition that typifies your everyday entrepreneur. Granted they may not be blessed with an ability to conjure up a product that revolutionises a market – few of us are – but franchisees still possess a high level of business acumen and a capacity to manage anywhere between one and 50 restaurants, coffee shops or pet stores. Indeed, for a number of franchisees, buying that first franchise is simply the first step towards bigger things: becoming a serial franchisee, whether that’s across a number of different brands or a multi-unit franchisee for one established brand. However, some go one step further than this and assume the role of franchisor or a position in the franchise management team.
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ANALYSIS
THINKING BIG
To take on a mature franchise without any experience in the franchising world would be very difficult Darren Taylor, StumpBusters
Bartholomew is one of those who have trodden this path. Yet his first foray into life as a franchisee came following stints in management positions at both McDonald’s and KFC, overseeing franchise operations for both and assisting with the opening of the first McDonald’s franchise on these shores. His decision to become a franchisee for Blimpie – Subway’s biggest competitor in the States – had more to it than just the opportunity to run a business on behalf of an established brand. “I did some consultancy work for the guys who were trying to bring Blimpie over here, as well as being a franchisee in my own right for them,” he says. “I always wanted to be part of the development.” Suffice to say, Bartholomew is not the sort of person who was going to be happy earning his keep running one or two franchises. “I was never going to be a one-restaurant franchisee,” he explains. “I was either going to be part of a big franchise as a franchisee or as a member of the franchisor team.” In 2002, an opportunity arose for Bartholomew to join the franchise management team of Oscar Pet Foods, the family-owned UK pet-food franchise. “The founder of the business was retiring at the time but the two family members who were taking it on were putting a management team together and they wanted to bring somebody in with franchise experience,” says Bartholomew. Twelve years later, he is still enjoying his role as franchise director for Oscar, along with that of bfa chairman, which he assumed last December. That’s not to say it doesn’t come with its challenges, which are markedly different to those a franchisee has to face. “As a franchisee, you are fully responsible for the profitability of your own business, although you are obviously dependent on how the brand is performing,” says Bartholomew. “As a franchisor, you are responsible for how the brand performs but you are very dependent on how the franchisees perform. No matter how strong the Oscar brand is, if
Autumn 2014 elitefranchise 33
ANALYSIS
our franchisees aren’t growing then the business isn’t growing.” Thankfully though, Bartholomew’s time as a franchisee – albeit for a different brand – helped stand him in good stead for his role at Oscar. “It’s a completely different discipline but having done it for yourself gives you credibility with your franchisees and it gives you a much clearer idea of what they’re going through,” he says. “Franchisees will always think that the franchisors perhaps don’t understand it quite from where they are, whereas I can because, although I have not been a franchisee for Oscar, I have been a franchisee. So I know where that feeling comes from.”
FROM THE GROUND UP
Succeeding in a senior management position in a franchise would certainly be a tall order without any prior experience of franchising. Another person who can vouch for this is Darren Taylor, managing director of StumpBusters, the tree-stump grinding and removal franchise. Taylor initially bought into StumpBusters as a franchisee because it presented the ideal means through which to expand his wife’s garden maintenance business. He’d also become drawn to the
idea of being his own boss. “I liked the idea of being self-employed and I was fairly confident in my ability to sell stuff,” he says. “I was working as a senior sales rep for a medium-sized electronic security company, turning over about £3m a year, of which I was responsible for about a quarter.” Taylor went on to snap up another two franchises and upon hearing that StumpBusters’ franchisors might be looking to sell in 2010, he decided to throw his name into the ring. “I heard that the current franchisor was interested in selling and began speaking with them about it, but for various reasons a deal never came to fruition at the time,” he says. Two year later, his luck was in. “At the end of 2012, I phoned one of the thenfranchisors on another matter and asked on the off-chance if they were still interested in selling – and we started the process again, this time with a successful conclusion.” Now occupied with growing the StumpBusters brand across the UK, Taylor believes his initial stint as a franchisee geared him up well. “To take on a mature franchise without any experience in the franchising world would be very difficult,” he says. “Having been a franchisee for eight years
for the brand that I was buying put me in a unique position. An existing franchisor from another business could have come in but I don’t think the existing franchisees would have been so accepting of them.” Life as a franchisee also helps build an understanding of the financials entailed in running a franchise. Niall Power and Gurmukh Randhawa, directors at Myhome, the residential cleaning franchise, reduced the business’s franchise fees soon after assuming the role of franchisors. “In the early days, franchisees do not feel the effects of paying royalty fees as they are still learning the systems, growing their businesses and reliant on the franchisor,” says Power. “As time lapses and the business becomes more independent and less reliant, to have to pay large amounts as royalty payments can become disheartening. We reduced the Myhome franchise fees to a level whereby there would be continued benefits to both parties.” Much like Taylor at StumpBusters, Power and Randhawa have benefitted from the working relationship they had already established with other Myhome franchisees. “Not everybody is accommodating to change [but] luckily for us we had a good relationship with the network, hence it was easy to adapt,” says Power. “We have managed to secure some great savings for the network by way of supplies and this has proved to be very popular.”
BALANCING ACT
Franchisors who care about their franchisees and remember that it’s a partnership are the ones who’ll succeed Simon Bartholomew, Oscar Pet Foods
Of course, the majority of franchisees who assume the role of franchisor still retain ownership of the franchises they’d been running up until that point. Being able to juggle these commitments is thus one of the principal challenges that face people who take the step up. “I’d advise not trying to continue running your franchise without staff to cover your duties when you are settling in to the role of franchisor,” says Taylor. “You will need learning time as well as time to carry out the day-to-day duties of franchisor.” For Bartholomew, the key is not to lose sight of the dynamic of the franchisee-franchisor relationship. “You’ve got to remember what it’s like to be a franchisee, remember that franchisees have a valuable opinion and remember that franchising is a partnership between the franchisor and the franchisee,” he says. “Franchisors who care about their franchisees and remember that it’s a partnership are the ones who will succeed.”
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Stepping up (L).indd 3
02/10/2014 16:33
Be your own boss – join one of the world’s most successful franchise groups! At Mail Boxes Etc. we need energetic people with drive, determination and enthusiasm to join our expanding 145-strong UK network. You don’t need any previous experience because we have 21 years’ in the UK franchising industry and everything is covered by our comprehensive training programme.
Mail Boxes Etc. franchise opportunities offer:
Established, fast-growing network with a proven system; Full support of a globally-recognised brand; A complete turnkey start-up package from £60,000; Comprehensive start up and initial training; Continual operational and marketing support
Call Rachel on 01608 649238 or email franchise@mbe.co.uk mbe.co.uk/franchise_opportunities Mail Boxes Etc. Centres are owned and operated by licensed franchisees of Mail Boxes Etc. (UK) Limited in the UK and Ireland. © 2014 Mail Boxes Etc.
FP AD PLACE.indd 1
01/07/2014 22:21
Want to run your own letting agency? Let’s do the numbers.
OFFICES
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**Average turnover of our top 25% of offices YTD July 2013
Be part of the equation. Contact us today.
franchising@belvoirlettings.com 01476 570 000 / www.belvoirfranchise.com
Belvoir FP.indd 1
28/02/2014 19:22
FINANCE
Going it a loan?
Franchised businesses are becoming more popular and your options for funding are many. But finding the right option for you can be tough
A guide to funding your franchise
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hey say it makes the world go round – whoever ‘they’ are. The truth is, if you’re serious about making a business work, you need to think about the moola, clams, cheddar, dough, Benjamins and deng. In other words, the money. The first question anyone looking to buy their franchise should ask is: how am I going to fund this thing? And there are a plethora of options out there. “You’re going to need to work out how much it’s all going to cost before deciding on one path or another,” says Mark Scott, director of franchising for NatWest. According to this year’s NatWest/bfa Survey, the average set up costs for a franchise are around £50,000 to £60,000, though in reality this can range from a few thousand to millions. So which funding option is best for you?
WORDS: RYAN MCCHRYSTAL
Family matters
Some franchisors actually provide finance to their franchisees but if you aren’t one of the lucky few, the immediately obvious place to look would be your own finance – whether that’s savings, investments or money from a recent redundancy. Sadly, for a lot of people the pocket money they’ve been saving since they were 12 isn’t going to be enough. “Alternatively you could turn to friends or family who are likely to support your vision,” says Scott. This option has three major benefits: you have an extra pair of eyes on board to assess your investment; interest rates do not normally apply when borrowing from those you know; and, in some circumstances, the money may be offered as a gift. Lucky for some. On the flipside, with family and friends Autumn 2014 elitefranchise 37
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FINANCE
Crowdfunding success stories can be intoxicating – going from zero to hero in days there is always the danger they may ask for it back at some point when you are unable to, therefore affecting your relationship with them, Scott warns. That is why it is essential that clear conditions are set before accepting any money.
Loan ranger
Failing that, you could always pop on down to your friendly neighbourhood bank. “If you do manage to raise the initial 30%, banks with a dedicated franchise team will lend up to 70% of the total start-up costs,” says Scott. You may only need £5,000 to £10,000 to begin with. From there you have the option of going with a loan or an overdraft; whichever you choose will require a business plan, including profit and loss forecasts. “You could think of the plan as a business sat nav – you know where you want to go and you can see the route as matters progress,” adds Scott. Often your franchisor will have a template for your plan but, if not, banks have tools you can use. A loan would be best used to fund set-up
costs, such as the franchise fees, shop fittings and other capital expenditure. The great thing about some loans is that if you find yourself falling behind on repayments, financial flexibility plans are available to help get you back on track. For example, you could take a ‘loan holiday’, whereby you stop making payments for a short period of time and pick up the slack at a later, more convenient date. Once the business begins to trade, an overdraft can be used to fund initial expenses, such as wages for staff during training. “This is also is a handy option if you are just looking for stock,” says Scott. While not always required, an overdraft may only be in place for the first 12 months.
Viable alternatives
Instead of a loan you could opt for asset finance for a specific item, such as a van, car, oven or printing equipment. This entails using balance sheet assets – such as short-term investments or inventory – as security to obtain a loan or borrow money. Many franchisors have arrangements in place for
asset finance. Invoice finance could also be a viable alternative to an overdraft. This entails issuing an invoice to a customer for work undertaken – for example the cleaning of their drain following a blockage – with the invoice finance provider lending you a percentage of the money due on the unpaid invoice, which could be up to 80%. When the customer pays the invoice it goes to the invoice financier and they pay you the remaining balance minus interest and their fees. If you use a factoring service, the invoice finance company will even issue the invoices for you and chase for payment, though the costs, as a result, are normally higher. “This is only relevant for franchises that operate in the business to business sector, rather than retail or business to consumer,” Scott explains.
Working the crowd
Crowdfunding is the new kid on the block in financing and while it isn’t used prominently in franchising now, Scott believes it could become more widespread in coming years. In a nutshell, it is a process whereby money is raised in support of your business through a growing number of social networks which facilitate contributions from the general public. Crowdfunding success stories can be intoxicating – going from zero to hero in days – but examples are few and far between. “Evidence shows that crowdfunding can work for some enterprise but it is not necessarily the right solution for all,” says Scott. In most cases if you don’t raise all of the money, you don’t get any. One significant drawback is that the very kind of people who donate will sometimes get a stake in your business, which leaves you with less control of your new venture. Buying a franchise can be a life-changing experience but, as Scott says, “first you must get the funding right.”
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ADVERTISING FEATURE
The franchise with a difference In the world of franchising where there are literally thousands of opportunities to choose from – with franchise descriptions using words such as ‘unique’ and ‘different’ – we question what actually makes a franchise stand out
E
veryone has a unique opportunity or so unique features and elements that distinguish it seems. But to be unique you have to be it from other brands? absolutely one of a kind, with no replicas The Interface Financial Group (IFG) believes and no look-a-likes – which also probably it still retains features that are truly different means no competition. from other franchise models. IFG comes The world of franchising or for that matter with over 42 years of history and during small business in general, has moved from the that lengthy time span it has maintained rented office concept to a home-based office its position as the primary funder for small setup. What was once unique, in that it was a businesses in a non-bank environment. IFG home-based business, is now common place. has sought to deliver a high standard of Employees represent another personal service – unique enough ‘unique’ area that isn’t so in today’s high-tech environment IFG has sought unique after all. It was at one – while at the same time time certainly different to say embracing technology to improve to maintain its that you had a business with no the day-to-day operations of the position as the employees. With the advent of model. primary funder business technology and outsourcing, the The IFG approach to for small ‘no-employees’ claim is again franchising is to share the day-tofairly common place in the small day operations of the business businesses in business world. with its franchisees. This means a non-bank Inventory represents another that the franchisor is actually environment changing area – most businesses involved with the franchisees in that produce or distribute a each transaction. The franchisor product would always have as does not actively compete with much inventory as they could afford. In this the franchisees but rather complements day and age, we tend to be focused less and and supports their efforts. They style their less on making a product and instead choose franchise as a 50/50 approach. This requires to import it, often at a much lower cost the franchisee to undertake what is referred than making it domestically. ‘Just-in-time’ to as the ‘people’ part of the business, while production has also meant that inventory the franchisor (IFG) handles the ‘paper’ part. levels can and are drastically reduced. The As a general rule, this works out very well as claim that you have a business with no most IFG franchisees readily admit they would inventory now starts to be common place. rather be out talking and working with their The next question would then be: is there clients than processing paper. really any business or franchise that still has The Interface Financial Group is in the
business of helping small businesses expand rapidly by unlocking capital that is tied up in accounts receivable. In other words, IFG clients have sold their product or service to their customer and are now waiting to get paid. That waiting period for many small entities creates a major finance and cash flow issue. Interface injects capital by buying those unpaid invoices at a small discount to produce instant funding for their clients. In their quest to deliver a unique franchise system for their franchisees, the fact that the franchisor handles all of the transactional paperwork goes a long way to set their model apart from other opportunities. But it does not end with a 50/50 approach to paperwork – IFG also offers a 50/50 approach to funding transactions. This means that every time an invoice is purchased from a client, it is a joint purchase by the franchisee and the franchisor. The paperwork and funding elements help to create a franchisee comfort zone. Franchisees can take comfort in the fact that IFG handles the paperwork, based on its 42 years of industry experience. They can also take comfort in the fact that every time they engage in an invoice purchase, the franchisor is working alongside them and investing its own money in the same transaction. The Interface Financial Group franchise is naturally a capital-intensive franchise. Capital is the key to growing a business, both for IFG clients and IFG franchisees. It has, therefore, created a capital leverage program that assists franchisees with their capital needs. The program effectively lends capital to the franchisees to enable them to complete a greater number of transactions. Having access to funding from the franchisor enables franchisees to not only assist their clients but also to allow them to grow their franchise entity at an exponential speed. These are unique features – even if the word ‘unique’ is somewhat overworked, these features truly represent a franchise opportunity with a definite difference.
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Interface Financial Group.indd 1
03/10/2014 14:03
Thumbs up for the New Franchise Opportunity from IFG! 3 great features of the IFG 50/50 franchise • Leverage your capital • We handle the paperwork • Create exponential growth
This is your opportunity to be in control of • Your Income potential • Your Capital • Your Work Schedule While earning a well above-average ROI!
IFG 50/50 franchisees provide short-term working capital for small businesses by purchasing current, quality invoices at a discount. For more information: Tel: 0845 834 0332 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.co.uk Interface Financial Group.indd 2
03/10/2014 14:04
SALES & MARKETING
Identity crisis? R
ebranding a franchise business is not a job to be taken lightly. It’s expensive, time-consuming and can have a major impact on the fortunes of the business as a whole. For franchisors, complete rebrands, including a name change, are largely off the table as an idea. The valuable intellectual property (IP), such as trademarks and logos, which enable franchisees to become a part of a successful business make this a no-go. However, franchises do regularly overhaul their brands to keep up with the times, reflect their current offerings and, ultimately, ensure they are appealing to their customers.
Brand is key to the success of franchises, so extra care should be given when alterations are made
The big questions
Any franchisor considering a rebrand needs to ask themselves a few simple, but revealing questions: • Why are we rebranding? • What problem are we attempting to solve? • How will this affect customers? • What new message are we trying to convey? • What are our aims and hoped-for results?
WORDS: JON CARD
Bringing in the experts
Any established business planning a rebrand would be wise to seek out an agency with past experience of successful rebrands. Attempting a rebranding in-house can lead to costly mistakes and has the potential to undermine the entire company. Furthermore, the UK has great strength and experience in this sector and so finding the right agency shouldn’t be that difficult. Franchisors should seek out a number of potential candidates and invite them to pitch for the business. When deciding on the agency, it’s important for a franchisor to feel comfortable with the people they are engaging and to be convinced they share their passion for the project. Cost is a factor but franchisors shouldn’t simply select an agency based on price as this may only prove to be a false economy. 42 elitefranchise Autumn 2014
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SALES & MARKETING
Choosing the right brand
For a franchise, choosing a new brand is a big decision as Kumon, the education franchise, recently worked on the it will impact on all the franchisees across the network. It company’s rebranding exercise, which it hopes will propel should not be a solo effort and a team of people needs to the company into the 21st century. Figures from the be assembled prior to the work beginning. These people company suggest a surge in take-up since it relaunched its should be involved in answering the initial questions and online offering. Williams says communication with ensuring they are fully explored. Franchisees should also be franchisees is key. “We would advise that franchisors involved in the process, if practical, as they are stakeholders consider what it is they want to achieve through their and need to be kept on-side. rebranding, and to think about what they want to put The new brand, of course, needs to reflect where the across before communicating it with their company is and where it feels its main appeal now lies. franchisees. In order to get franchisees to buy into The new brand, Kerry Noble is part of the marketing team that has the idea, they should have an understanding of been working on the Esquires Coffee rebrand in the why the changes are taking place and how of course, needs to UK. She says much of the company’s rebrand was they can be beneficial to them,” she says. about highlighting to the customer the provenance reflect where the New phase of its core product. “We needed to reflect the fact Roll-out can also take time and doesn’t that we are organic and Fairtrade. Before, our logo company is and need to be done in one go. Noble says that was a penguin and many of our stores were blue. Esquires is starting with one store in Now they are orange and yellow, and the whole feel where it feels its Durham, which is currently being is more earthy,” she says. refurbished, before rolling out the new look main appeal now across the UK. Also, the rebrand is part of a Communication Franchisees not only need to be brought on-side but also new phase in the business with new IT and till lies educated on how the new brand will affect them. The systems being implemented. “Our first fully franchisee manual will need some updating and there rebranded store is due to open in Durham city centre in will also be extra training days to schedule in. But the key early October. We are hoping that that the fresh new look message that all franchises will want to hear is how the will attract the same loyal customer base as before, as well as new brand will help their businesses and, ultimately, help converting new customers to regulars. Each store is to be them to make money. installed with a brand new till system, which will allow for Sian Williams, local communications co-ordinator of better tracking of sales and profitability.”
SIGNS EXPRESS
Rebecca Dack, marketing manager for Signs Express, recently led a team of people that worked on the rebranding of the company
I had been pushing for it for a couple of years and we were ready to do something different in terms of our look. Firstly, we undertook a series of focus groups with customers, asking them about their opinions of the brand look, their experiences with our franchisees and how they felt about the company as a whole. We then carried out a survey of 1,000 businesses, asking them what they look for in a supplier, what frustrates them and how they view signs and graphics within their own business. The results showed that customers value input from their suppliers and are frustrated when suppliers show a lack of professionalism, knowledge and customer service skills. We had a convention with franchisees,
showed people what our market research had found and what was going to happen, and everyone was up for it. We used a brand consultant and an agency. They really helped and it was really useful getting a perspective from someone not in the company. We thought about changing the whole look but decided to modify it, as we have a really recognisable logo and I think it would have been too much for the customers to change it completely. When the recession was going on, a lot of people decided to rebrand and refresh their look. It seemed almost contradictory for us that we still had the same look when our customers were modernising. The time was right for us to move into a different era.
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03/10/2014 11:57
Starting a Here’s one we Starting a business is no walk in the park, and unless you’re a multimillionaire with a crack team of experts at your disposal, it never will be. So why are so many people in the UK choosing to go it alone? Is having a boss starting to lose a little gloss? Investing into a franchise model is the perfect fit for some; offering a ready-made business model with a loyal customer base; a tried and tested brand; relationships with suppliers; and a dominant online presence. It’s all there, boxed up and ready to go. If businesses came flat-packed, they’d probably look like franchises.
Of course, a franchise isn’t for everyone, but here are a few reasons why a franchise might be a smart move for you... The security obtained with a franchise is second to none. You’ll be running a business with a tried and tested framework, a brand that is trusted, and with the ongoing support of the franchisor. The franchise industry has rarely been in a better, more profitable state than it is today. The franchise industry isn’t monopolised by fast food joints and coffee shops anymore; there’s now a broad range of franchises covering almost every area of business imaginable – from property investment to photography, comedy clubs to chocolate shops – so selecting the right brand could be your toughest decision in the whole process. At every stage of the franchise process, you’ll benefit from support of the franchisor and a network of franchisees. This support will enable you to get on top of potential problems quickly, and bounce ideas off others who’ve been in the same position. The franchise industry has seen significant growth in recent times and it’s now more diverse than ever before, with the UK proving fertile breeding ground for franchises of all shapes and sizes. The industry is now ripe with opportunities for franchise first-timers hoping to get a foot in the door, and even for hardened business owners looking to expand their business portfolio.
The Franchise Show will take place on 20/21 February 2015, ExCeL London The Franchise Show DPS.indd 1
03/10/2014 17:01
business? made earlier
Over the last four years, The Franchise Show has helped thousands of people to make their move into business, offering access to the very latest information and opportunities within this fast-moving industry.
The next show will take place at ExCeL, London on the 20th and 21st of February 2015. Tickets are free, simply register at www.thefranchiseshow.co.uk or call 0800 1577 950 With much of the work already done for you – the brand building, the marketing strategy, the idea development – a huge part of getting started in franchising isn’t running the business itself, but researching and pinpointing a franchise model to suit your budget, character and ambition. The Franchise Show represents the industry’s diversity to its fullest, continually delivering an event that puts visitors at the heart of unmatched information, opportunities, and contacts, spanning every area of franchising conceivable. Whether you’re searching for the right franchise system, or you simply wish to find out more about the industry, The Franchise Show’s comprehensive conference schedule is a great place to start. You’ll discover seminars on everything from master franchise operations to retail franchises, and with the new Focus On seminar schedule, finding the right information has never been easier.
FOCUS ON
Focus On is a series of 30-minute seminars delivered by the most respected and experienced professionals in the industry, each seminar focusing on a different franchise sector. Starting with a brief introduction to franchising, the seminars look at the characteristics of the market, investment levels, expected return, skills needed, the common pitfalls and the day-today operations. These sessions cover the most up-to-date practical, legal, strategic, and financial issues, allowing visitors to get straight to the heart of what they want to know.
International Opportunities
We have a number of great brands from The United States and the rest of the world who are looking for UK master franchisors at the event. These brands offer an unique and exclusive opportunity to bring a globally successful brand into the UK. If you think you have want it takes to do this, you can arrange a one-to-one appointment, at the show, to discuss what’s involved – call 0800 1577 950 to do this. High investment, high return opportunities are also available at The Franchise Show, offering visitors the chance to meet people who have successfully established master franchises. Attend a series of seminars and workshops presented by leading experts in their field; and enjoy face-to-face meetings with organisations seeking to offer master franchise opportunities, many of whom will be promoting their concept for the first time in the UK. To complement the huge number of UK brands at the show, many international franchises will be present, all looking for willing franchisees to take the reins of concepts new to the UK. Visit in February and find out why The Franchise Show is regarded by many as the must-attend event for anyone looking to start a franchise business.
Tickets are completely free and available at www.thefranchiseshow.co.uk or call 0800 1577 950 The Franchise Show DPS.indd 2
03/10/2014 17:02
PEOPLE
The next generation Young franchisees are on the rise and proving they have just as much business savvy as their elders
WORDS: JOE JEFFREY
S
etting up one’s own business for the first time can be a daunting step. And without signs of a successful business model in place, most banks won’t be too inclined to throw wads of cash at you. But entering into a successful franchise can prove to be an excellent way for young people to get a taste of ownership while having the protection of a tried and tested business model. For many graduates, leaving the squalor of their student digs and bidding farewell to a staple diet of beans on toast doesn’t necessarily mean they’re going to walk right into their dream job. Or any job, considering the UK economy has sat in the doldrums since 2008 and is only now showing slight signs of recovery. For that reason, the idea of operating a franchise is becoming more and more appealing for the latest generation of young professionals. One person who experienced how difficult it was to find work post-degree is Matt Woodall, franchisee for Revive! Auto Innovations, a franchise providing high-quality minor paint repairs to retail, trade and fleet customers. “I graduated at a time when there were very few jobs available with hundreds of people applying for every vacancy,” Woodall begins. “I had read about the franchise model as part of my studies so decided to look into it further. Just before my 22nd birthday, when most of my friends were planning gap years or staying on at university for further studies, I used all of my savings, borrowed some money from my parents and the bank and bought the Revive! franchise in Bath.” Quite an investment to make at such a tender age but Woodall thinks the sooner the better. “The fact that I started my business young can only benefit me in the long run,” he continues. “By the time I decide to settle down and have a family, the company will be well established and hopefully I will be able to enjoy life without the work demands I am facing now.” And he’s not the only one whose professional aspirations started young. Phylly Jones, franchisee for Pyjama Drama, the child drama
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PEOPLE
I graduated at a time when there were very few jobs available, with hundreds of people applying for every vacancy Matt Woodall, Revive! Auto Innovations
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PEOPLE
franchise, has always had her eye on owning her own business. “Subconsciously, I think the groundwork had begun when I was as young as six and tried to sell stories I’d written to the general public by putting up hand-drawn posters on the fence and watching out the window for passersby,” the drama graduate begins. “Throughout my childhood, I developed a branded theatre company and directed amateur family productions for my mum’s large family featuring younger members.” Choosing to franchise wasn’t exactly a difficult decision to make. “I fell into franchising because I wanted to start a small business,” Jones continues. Working with an established brand meant she was able to take on her own business without the risks and restrictions that come with starting from scratch. “As a graduate in lots of student debt, it was far more realistic to buy a franchise, in terms of being able to receive a business loan.” But the security net of a tried and tested brand isn’t the only reason young people enter into franchises. The additional time involved in setting up a new enterprise from scratch compared with taking on a ready-made
business model can prove a significant factor. “I was aware that time was precious,” Jones continues. “It was taking me an awful long time just to research and come up with my own product, let alone the time it would then take to test it and market it. Why wouldn’t I take the option that allowed you to operate under a fantastic programme and brand a franchise had already created?” Jones isn’t alone in buying into a franchise because of the additional structure it provides, as Aaron Stewart, franchisee in the Marston’s pub chain, reveals. “I was encouraged by all the advantages and benefits of franchising: the training, operations manual, encouragement and on-going support are all excellent, covering every aspect of the business,” Stewart begins. “If you need to know more, there is a highly specialised team at Marston’s head office to offer guidance. You can have confidence in a business that has operated in its sector for 130 years.” Like Jones, Stewart also expressed a strong entrepreneurial flair from an early age. “I always wanted to run my own business, and from a very young age I struck out for what
It’s time I took another dive and started swimming towards more success Phylly Jones, Pyjama Drama
I wanted,” he says. “I have always been ambitious; while I left school without qualifications, I was determined to do something worthwhile and make money.” Having a strong work ethic, as well as high expectations of himself or others, Stewart had no doubt that he was suited for running his own business. “As an employee, I always treated every business I worked for as my own,” Stewart says. “By the time I had acquired knowledge and experience of the licensed trade, I knew I could make it work for me as my own boss. Franchising seemed the most likely and quickest way to succeed.” This work ethic definitely seems to be paying off for Revive! Auto Innovations, with its operations already growing significantly. Woodall is looking to recruit another technician later this year. “By the time I’m 40, I’d like to be employing a number of technicians with a fleet of vans and have an indoor unit to work from,” Woodall says. “I would like to take a more back-seat approach and enjoy the fruits of all the hard work I have been putting in.” Jones has already started to expand her franchise by employing an additional member of staff. “The demand is such that it has grown too large for the one person,” she says. “It’s a big step and I have my concerns but it’s time I took another dive and started swimming towards more success. The product is a proven success in my territory but it can only go backwards if I carry on trying to hold the fort single-handedly, so necessary action has been taken. It is ultimately teamwork that makes the dream work.” For any other upcoming graduates looking to follow in the footsteps of these budding franchisees and venture into the world of franchising, Stewart offers some stellar advice. “Find out as much as you can about the sector you want to join, and make sure you are really ready for the commitment and responsibility of being self-employed, and are sufficiently motivated to run your own business. In practice, that means long hours, little free time and hard work,” he says. “The rewards, which can be considerable, come later.”
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Inspiring, educating and supporting women considering or involved in franchising
The mission of the group:
The EWIF group is dedicated to encouraging women into franchising. Its members come from all areas with franchising industry and include: Franchisors, Franchisees, Banks, Consultants, Accountants, Solicitors, Media Providers, Exhibition Organisers, as well as other associated businesses.
3 target groups:
Women looking to become franchisees
Women business owners looking to expand through franchising
Existing Franchisors that have businesses suitable for woman franchisees
EWIF also....
Undertakes research into women in franchising Raises the issues facing women in franchising Publicise "Women in Franchising" in the media
www.ewif.org | info@ewif.org Inspire | Educate | Encourage | Support
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TECHNOLOGY
Through the looking glass W
e’ve all seen laughable Tomorrow’s World type predictions of flying cars and robot employees. But the pace of change today means that no one dares to make predictions 50 years into the future any more. However, government departments are now willing to put resources and policies into areas where they believe breakthroughs are imminent. When in government, David Willetts, the former minister for science and universities, outlined what he thought were the ‘eight great technologies’ of the future. He believed that the sectors of big data, space, robotics and autonomous systems, synthetic biology, regenerative medicine, agri-science, advance materials and energy were the big ones to watch. However, he also said he thought the impact of developments in these fields was likely to create winners and losers. “These new technologies are often deeply destabilising,” said Willetts. “They are a challenge to traditional businesses, which find themselves having to adjust to the arrival of new technologies that disrupt what they do. The ones that survive have to move way beyond their traditional technologies and sectors.” According to The Organisation for Economic Co-operation and Development (OECD), a high-tech business is one which invests more than 4% of turnover in R&D. However, even those that do not are affected by those that do. The rampant pace of technological change means we are all embroiled in a constant game of catch-up. In all likelihood, a business operating in the same way as it was five years ago is probably not at the top of its game. Franchise businesses need to overhaul and update their operations on a regular basis to ensure they aren’t overcome by the opposition. Many of these businesses are already making strides in this direction, both by conducting their own R&D and by harnessing the best the market has to offer.
WORDS: JON CARD
Franchise owners and franchisees are as keen to use new technologies as any other business owners. But which key areas should they be investing in?
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TECHNOLOGY
These new technologies are often deeply destabilising David Willetts, former minister for science and universities
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want to be able to plan and predict costs with as much accuracy as possible. IRT Surveys operates in a niche part of the energy sector, providing infrared thermal images of buildings so that surveyors can spot inefficiencies and defects in properties. Company founder Stewart Little says investing in software is paying off in a rapidly evolving sector. “For us, the future is software. We embarked upon the software development journey back in 2006 with one goal in mind – could we turn the pixels into pounds? We found that we could, and raised venture capital to fund the development of software that differentiates us in the market,” says Little. “The energy market is a fast, emerging and challenging sector. Our software means that we have something truly unique to offer our clients.”
HOME-BASED BUSINESSES
You have to stay on top of these things and adopt the technology early to get the most out of it Stewart Little, IRT Surveys
BESPOKE SOFTWARE
The franchise sector has been massively impacted by rapid developments in ICT, as have all businesses. Ever-increasing computer processing power is enabling data-rich software packages to operate, and placing untold power into the hands of businesses. Some of the simplest and most traditional businesses can radically alter their methods of working by using these. Ben Brookes is the franchise manager at Agency Express, which provides estate agency board services. Even the simple act of placing a board in a house seller’s front garden has been altered by software. Agency Express’ “van-based franchisees” all use the company’s bespoke £1.5m Signmaster system to increase the number of jobs they can complete each day. “In its purest form, Signmaster initially enabled our clients to order all their signage requests online, while enabling our franchisees to access their daily work in a user-friendly
format,” says Brookes. “An immediate effect was noted: there was a dramatic increase in the number of visits an operator was able to conduct each day, coupled with a faster turnaround and higher number of life cycles for each board owned by the estate agent.” The system also uses the ‘big data’ of traffic reports and updates to improve efficiency, reduce emissions and boost profits. “The most notable change has been the introduction of ‘route optimiser’, a complex, algorithm-based route planner, which calculates the most fuel-efficient route for a franchisee to take each day,” says Brookes. “The system now takes into account traffic, road closures, events and more to ensure we are as swift as possible, while ensuring the lowest carbon footprint possible.”
ENERGY
As businesses strive to be more efficient and forward-thinking, there’s an unending thirst for greater levels of informative data. Businesses
Increasing numbers of people are working from home and running their own enterprises. The government says it wants to protect ‘kitchen table’ entrepreneurs and is bringing in new laws to ensure tenants are able to work from rented premises. This development is of considerable importance to the franchise industry, as many franchisees set up from home initially. There’s also little doubt that the rising number of self-employed people, all 4.5 million of them are being enabled by cloud-based technology and software. In fact, whereas once technology started in the workplace and then seeped into the home, now the reverse is true. It’s a common complaint of many employees that their office computer is not as good as the one they use at home. Technologies that enable people to work from home or on the move, and to log in from anywhere, are therefore of major importance to franchise businesses. Little says that cloud-based software and social media continue to boost his business, although he does warn franchisors that some franchisees are more enthusiastic than others. “We have always sought to embrace technology and use Salesforce, Pardot, Chatter, LinkedIn,” he says. “You have to stay on top of these things and adopt the technology early to get the most out of it. The biggest challenge this attitude brings us is that some of our network is less than excited about tweets and blogs than the rest. Techno fear is alive and well; it can sometimes create a barrier when a franchisee can’t learn fast enough or doesn’t want to.”
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The franchise consultancy for new and existing franchises Established franchisors can benefit from:
Companies looking to franchise receive expert guidance:
• Franchise network reviews and audits • Outsourced franchisee recruitment • Support systems development • Franchise expansion strategies • International franchising • Ongoing support and guidance
• Initial franchise feasibility study • Support systems development • Operations manual production • Outsourced franchisee recruitment • Franchise territory mapping • Ongoing support and guidance
FRANCHISING BOOKS BY CLIVE SAWYER
Clive Sawyer, Managing Director of Business Options has written three books on franchising. All the books are available on Amazon at www. amazon.co.uk/tag/franchise/products or from The British Franchise Association bookstore at www.thebfa.org/shop
For further information about how Business Options can help you franchise your business, or get the most out of your existing franchise, please call:
01420 550890
email info@businessoptions.biz www.businessoptions.biz
In the business of business development
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LEGAL
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LEGAL
At arm’s length? In light of the recent ruling in the US that McDonald’s is to be held jointly liable for the labour practices of its franchisees, how safe are UK franchises from similar reprisals?
T
WORDS: JOSH RUSSELL
he last few months have seen the world of franchising rocked by developments Stateside. In July, the National Labor Relations Board (NLRB) ruled that, contrary to legal distinctions that hold franchisors and franchisees as seperate entities in terms of liability, McDonald’s could be classed as a ‘joint If a franchisor fails to employer’ in 43 separate cases detailing unfair labour amend their terms and practices. Inevitably, this had created a veritable tempest of protestation from those who feel it could threaten conditions, they can the very legal distinctions that allow franchising to then find themselves function, last month culminating in a whole host of franchise owners descending on Washington DC to actually being liable show their dissatisfaction at the decision. for the customer But what does this mean for franchises on this side of the pond? Given the UK franchise industry isn’t Nicola Broadhurst, Stevens & Bolton subject to the anywhere near the same degree of formal regulation as the US franchising system, are Blighty’s franchises at more or less risk of being found legally culpable for the actions of their franchisees? According to Nicola Broadhurst, partner at law firm Stevens & Bolton, it seems unlikely that the UK will see such an extreme decision. “The courts here are reluctant to do something like that,” she says. “What they will do is analyse the relationship and ask, ‘How much control does the franchisor actually have over the way in which the franchisee operates the business?’”
By their nature, franchise agreements are very clear about the legal separation between a franchisor and its franchisees, meaning the onus is on the courts to demonstrate that there is clear evidence this separation has broken down. “The courts would really have to look into the relationship and prove that was the case,” Broadhurst says. “But there wouldn’t be very many cases where the franchisee is more than a franchisee.” However, while it is a rare occurrence, it is not entirely unheard of. Broadhurst makes reference to an HMRC case where it held Weight Watchers programme leaders should be classified as employees rather than self-employed contractors, leaving the organisation to foot a large tax bill. “The reason it gave was that the Weight Watchers’ leaders didn’t have autonomy in the way in which they ran the business,” Broadhurst explains. Weight Watchers’ programme leaders were required to seek head office approval when arranging meetings and the main company paid for these bookings, somewhat undermining their legal independence. “In a typical franchise scenario, it would be so much more hands-off than that,” she says. “A franchisee would be responsible for its own contractual arrangements over venue hire.” A situation where the main operation steps in to organise key accounts can also undermine the legal separation between franchisee and franchisor. Certain kinds of franchise – particularly auto-valet, windshield repair and Autumn 2014 elitefranchise 55
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disaster specialist repair franchises – tend to operate large national contracts with big organisations and subcontract the work out to their franchisees. This is fine as far as it goes but it can mean that the legal responsibility for that work becomes a little blurred. “In that situation, that can be a bit of a dangerous relationship to have,” Broadhurst says. “Firstly, because the franchisee becomes dependent on the work being passed to them by the franchisor and, secondly, because the franchisee becomes little more than actually a self-employed contractor for the franchisor.” In certain cases, a franchisor might find itself open to claims of negligence and a failure in its duty of care. One such case involved Kall Kwik, the printing franchise, when a third party was buying a franchisee’s business – while the sale was arranged by the franchisee, Kall Kwik provided some estimates of how much the refurbishment costs would tot up to, which ultimately fell some way short of the final figure. “The purchaser was able to sue Kall Kwik for negligence in that scenario,” says Broadhurst. “It was upheld because the courts said that the franchisor had got involved in the sales process, had given information and had established a duty of care between themselves and the purchaser.” This demonstrates just how important it is for
a franchisor to be careful about how much it involves itself in the business of its franchisees. A significant blurring of the lines also arises from the fact that in many consumers’ minds there is rarely a clear separation between a franchised brand and its franchisees. Sometimes this state of affairs is actively encouraged by franchisors. “There are some franchisors out there who say, ‘We don’t actually want our clients necessarily to say that they’re dealing with a franchisee because they like to deal with head office’,” Broadhurst says. Obviously, if this same attitude prevents a franchise from making it explicitly clear what they bear liability for, this can potentially lead to problems. This becomes most acute when a franchise fails to update its consumer-facing terms and conditions to reflect the fact that they aren’t legally liable for work conducted or services provided by a franchisee. “If a franchisor expands a business through franchising but fails to amend their terms and conditions, they can then find themselves being liable for the customer because they haven’t told the customer they’re in fact contracting with the franchisee,” Broadhurst says. Ultimately, this touches on the key point: simply writing a franchise agreement and assuming that this will cover you from any liability is going to result in trouble. “You
It’s vital for franchisors to ensure that they aren’t crossing the line and interfering with franchisees’ independence
can’t just stop at the franchise agreement,” Broadhurst says. “You have to look at every aspect of your contractual documentation and see if it’s clear, particularly on the website.” Even beyond this, it’s vital for franchisors to work through all of their processes and ensure that they aren’t crossing the line and interfering with franchisees’ independence. While we’re unlikely to see anything approaching the NLRB in this country, a franchise agreement alone can’t guarantee a franchisor has no liability for its franchisee’s actions. Keeping franchisees at arm’s length is therefore the best way to keep yourself safe from legal reprisal.
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FRANCHISE FOCUS
ABC Photography Our franchise opportunity is ideal for anyone who enjoys working with children but not necessarily an experienced photographer! We specialise in photographing Nursery schools, pre-school groups and Mother & Toddler groups. Also, as a mobile Studio, we take portraits in customers’ homes, providing top end quality photographs, reasonably priced. Call 0121 704 1016 email: info@abcphotos.co.uk www.abcphotography.co.uk
AboutMyArea AboutMyArea offers you a unique business opportunity: an interactive local AboutMyArea online website that keeps the local population up-to-date with all the latest news and events in their area. AboutMyArea is not a hard sell advertising business. Its success is based on engagement and careful, effective marketing. Call 0871 384 9936 www.aboutmyareafranchise.co.uk
A-Star Sports
A-Star Sports is a multi award-winning children’s sports coaching franchise, specialising in delivering weekly classes, holiday clubs, parties and events direct to families. We offer an exciting opportunity to coach ten core sports and more, promoting the all-round benefits of sport and a lifelong commitment to being active. Franchisees are offered a bespoke training programme but they all have three things in common – a passion for sport, an affinity with children and the drive to succeed in business. Call 0845 459 2210 email: gary.bassett@a-starsports.co.uk www.a-starsports.co.uk
• An exclusive territory. • Extensive and on-going training in photographic techniques. • The photographic equipment and stationary to start up your business. • Marketing and Accounts training. • A comprehensive franchise Operations Manual. • On-going Technical, Marketing & Management Support Services • Your own personal Web Page.
• Become the ‘Go To’ news site for your local community • Franchise fee of £9,995 (plus VAT) • Low monthly fee of £199 (plus VAT) • Established in 2005
• Low cost start-up at £12,500 (+ VAT) including equipment to deliver all levels of the programme (10 core sports) • Unique eight year coaching programme for children aged 2-10 years • Ongoing support with detailed business and coaching resources • Exclusive, defined territory
Belvoir Lettings Belvoir Lettings has grown dramatically since opening in 1995, with over 150 franchised offices nationwide. Offices are owned and managed by local people, whilst being part of a recognised brand and successful business model. As the first residential lettings agency to launch on AIM in the London Stock Exchange, Belvoir has ambitious expansion plans. Franchise owners with the aptitude, determination and people skills are needed. Call 01476 584 900 email: franchise@belvoirlettings.com belvoirlettings.com
• 150 Offices Nationwide • 100+ Territories still available • £22.5K one-off franchise fee • £332K Turnover potential • 3 weeks training = 30 Training Sessions • Over 6000 unique visitors to our website every day *Plus VAT **Average turnover of our top 25% of offices YTD July 2013
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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. Call 01903 266 392 email: franchise@caremarklimited.co.uk www.caremarkfranchises.com
• Proven business model • Outstanding support • Comprehensive ongoing training • Established network • Elder sector set to grow by 51% by 2030
Century 21 Century 21 is the world’s largest estate agency network, with over 7,100 offices and approximately 100,000 agents in 74 countries worldwide. We are looking for new offices to join the Century 21 family and bring this international and exceptional brand to new locations in the UK.
• Assistance with launching your business • Induction and on-going development training • Tech support
Call 0870 21 11 399 opportunities@century21uk.com www.century21uk.com/franchise
• Access to an extensive global network
CNA Executive Search Ltd Build a global business with no territory boundaries Build your own business with the brand, support and benefits of being part of one of the largest recruitment companies in the UK and Europe. CNA Executive Search specialist (Partners) forms the executive search and senior appointment arm of the Pertemps Network Group Ltd. Call 01676 822 222 email: nick.sprang@cna-international.com www.cna-international.com
• Instant brand recognition and credibility with global corporations • Full Training on how to build and grow your business • Superior and constantly evolving systems from the Pertemps Group • Start your business with low overheads from your home office
Driver Hire Nationwide A straightforward business with huge potential A proven B2B management franchise with over 100 offices and a 30 year track record, Driver Hire is one of the most successful franchise brands in the UK. A specialist recruitment company supplying temporary staff to the transport and logistics sector. Average full year sales for Driver Hire franchisees in 2012/13 were £704k. Call Kasia Baldwin 01274 361073 email: franchise@driverhire.co.uk www.driverhirefranchise.co.uk
• Entry investment level from £35,000 (including start-up capital) • Run your own business in a sector worth £26.5bn in the UK • Net profit potential of over £100k per annum • No previous recruitment, transport and logistics experience required
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Eazi Apps Get involved in the fastest growth market in history offering iPhone, iPad, Android and mobile web apps without any technical or design experience. We give you a full turnkey package that includes in- house training, support, help desk, loads of marketing materials and a full sales and marketing plan.
• Start your own mobile app business for only £5,995 (+VAT) • Substantial income potential
Be your own boss, work your own hours, when you like, where you like.
• Work from home
Call 0800 865 4600 www.eazi-apps-business.co.uk
• No tech experience required
Goldgenie Goldgenie was formed in 1995 and is now the most influential and trusted brand of its type in the world. Clients include HTC, Blackberry, Lexus, Viacom, American Express and Visa, and numerous A list Hollywood and international stars. Business in a box: This amazing business opportunity truly can give you the Midas touch turning hundreds of everyday items into luxurious gold or rose gold. Our success can also be your success with a small investment of just £2447.50 plus Vat. Call Frank Fernando on 0208 804 6200 Email: Frank@goldgenie.com www.goldgenie.com
Harry Ramsden’s Celebrating over 85 years in operation, Harry Ramsden’s is Britain’s longest established restaurant chain and is world famous for its Fish and Chips. With almost 30 Harry’s outlets operating across the UK and Ireland, we’re looking to increase our presence and are offering an amazing opportunity to become part of a British Institution.
Call 0203 077 5880 email: franchise@harryramsdens.co.uk www.harryramsdens.co.uk/franchise
• Complete business in a box • Minimal investment • Unlimited income only limited by your imagination • Change your life by visiting this link: www.goldgenie.com/ goldgenie-businessopportunity.php
Harry’s Facts • Fish and Chips remain the nation’s favourite cuisine with 382m portions sold annually • Harry Ramsden’s is the brand most closely associated with Fish and Chips globally • Brand awareness and recognition, along with the popularity of the offering, ensure Harry Ramsden’s outlets compete effectively from the outset
Home Instead Senior Care Home Instead Senior Care specialise in providing older people with non-medical care in their own homes. We take the lead not only in the care we provide, but also for the industry leading support we provide to our franchisees. Choosing a Home Instead franchise will enable you to combine making a difference with running a substantial and rewarding business.
• The bfa Gold Franchisor and Franchisee of the Year
Call 01925 732460 franchiseinfo@homeinstead.co.uk www.homeinstead.co.uk/franchise
• 5 star Franchisee Satisfaction
• Smith & Henderson Best Franchise Award • No.1 Home Care Provider
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The Interface Financial Group IFG 50/50 is an affordable home-based franchise that provides short-term working capital to small businesses by purchasing current, quality invoices at a discount. In IFG 50/50, all transactions are syndicated 50/50 with the franchisee and franchisor. IFG is also responsible for the due diligence and paperwork for the transactions, while IFG 50/50 franchisees build the referral relationships. Also available is an innovative Capital Leverage Programme to allow franchisees to grow their capital even faster.
• Excellent ROI • Low overhead • Home-Based • Exceptional training & support • Non-territorial & Portable
Call 0845 834 0332 email: ifg@interfacefinancial.com www.interfacefinancial.co.uk
JAN-PRO Cleaning Systems Jan-Pro is committed to helping individuals start their own commercial cleaning business at whatever level they choose – part time, full time or executive, with an entry level investment of under £10,000. Our training is excellent, our support ongoing and our vision is for you to grow your business to support the lifestyle of your choice. Call 01934 740472 email: phil.ryan@jan-pro.com www.jan-pro.com/centrallondon
KARE PLUS
Kare Plus is a leading provider of quality nursing and domiciliary care, supplying medical and non-medical personnel to the NHS, some of the UK’s largest private hospitals and nursing care groups, and those requiring care in their own home. We have new Service Level Agreements in place with the NHS, a portfolio of established National Contracts and full CQC accreditation. Join us and earn healthy profits by delivering valuable services to your local community. Call 0845 094 9288 info@kareplus.co.uk www.kareplus.co.uk
• Join a rapidly expanding industry. • Learn and benefit from our training, our processes, our unique guarantee and our reputation. • Invest and grow at a pace that suits you and your individual goals. • Rely on JAN-PRO to take care of the business while you take care of your customers.
• Established brand recognised by health professionals • On-going support, including recruitment and customer development • Access to national contracts nationwide • Competitive franchise fee of £40,000
Martin & Co Martin & Co is one of the only UK property agency franchises that offers lettings and estate agency with UK-wide recognition. With a network of just under 200 franchise owners, they are the largest property franchise business in the UK. With strong high street and online presence, the secret of their franchise owners’ success is that they can provide local property knowledge whilst being backed by a national brand.
• Buoyant rental market • Growing sales market • Turnover £245k in year 3 • Build a business worth over £380k in just 5 years
Call: 01202 292829 email: propertyfranchise@martinco.com www.propertyfranchise.co.uk
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Rainbow International Rainbow International is the leading supplier of restoration and specialist cleaning services following fire, flood or accidental damage in domestic and commercial premises. These services are offered to many of the top insurance companies as well as large companies and private customers. Business opportunities are available throughout the U.K including new territories and re-sales. All training will be provided in our in-house training facility. Call 01623 675 185 Businessopportunites@rainbow-int.co.uk
Surelet
SureLet has been providing a fresh, exciting and innovative lettings franchise opportunity for over 10 years. The support, care and attention that each and every franchise receives is the reason our company continues to grow. Which is why when you buy into our SureLet Franchise, you don’t just buy into a successful business, you buy into a family. We want to continue to build on our successful lettings franchise model and make a real difference in the Lettings Industry. Call 08000 934 984 info@surelet.co.uk www.surelet.co.uk
• Recession proof business • Recognised brand • Protected territories • Personalised Rainbow website • Ongoing support from a team of experts at Head Office • Extensive 3 week training onsite at Head Office
• Send all paperwork to our PropertyManagement Centre • Bespoke Sign-writing - have the car vinyl synonymous with the SureLet brand • Cloud based technology for easy management • Franchise only starting from £12,500
Trivaeo Cloud Services The company behind the “Best CRM on the Planet” and Finalists in the Network Computing awards 2014 now seeking Channel Partners with a deal structured like a Franchise, but without on-going Management fees. Sell 65 on-line business applications that will automate just about any SME. All revenues earned come directly to you. Full training and Management systems supplied. No technical experience required.
• Easy to sell and demonstrate • Free trials for all users • Revenues that come directly to you • Fantastic margins with limited outlay and no stock.
Call David on 0844 561 1979 email: partners@trivaeo.com www.trivaeo.com
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. Call 01530 513307 email: edownes@thezipyard.co.uk www.thezipyard.co.uk
• Marketing and promotion tools • Group purchasing power • Internet and web support • Ongoing training programmes • Continued concept and product development • Day to day troubleshooting
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03/10/2014 15:31
Word on the street Having a big brand behind you counts for nothing if you fail to market effectively to your local community, says Rachel Shaw
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ocal store marketing and being part of the community really pays off. Being a franchisee for a global company such as Subway can sometimes make a franchisee complacent in terms of the marketing they think their store requires. One would like to think that customers see the brand and that is enough to drive custom, but with increasing competition in the fast-food industry, I, like other franchisees am finding that this is not always the case. There is no denying that the Subway brand is widely recognised. It recently announced its 1,800th store opening in the UK and Ireland, and now has more than 42,000 stores in more than 105 countries around the world. In turn, it receives a lot of media coverage and advertising, and it’s obviously great to be associated with the brand’s global success. However, franchisees should question whether they can solely rely on the brand name to draw in a solid customer base in their immediate area. Ask yourself: does the customer actually know where you are and how to find you? This part of marketing is down to the franchisee. I have had great personal success from local store marketing. Here are my top local marketing strategies that have helped to put my Subway stores on the map within my local area:
Franchisees should question whether they can solely rely on the brand name to draw in
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FRANCHISE DIARIES
Sponsoring local events such as fairs and street festivals has helped to generate a lot of attention for my stores. It has made them a respected part of the community and helped to position us as a high street store that invests in and gives back to the area.
Another strategy I’ve used to raise the profile of my stores in the local community is by offering work experience placements. This is another great way of giving back to the community while providing the next generation of potential franchisees with the opportunity to experience what it is like working in a leading fast-food outlet. The work experience placements also emphasise the high standards in place in a Subway store, which in turn has a really positive knock-on effect for the business.
Directional signage is also a great way to ensure that customers know where you are, especially when you are establishing a new store location. I’ve hired specific poster sites and even placed arrows on roundabouts pointing towards my stores, which have proved effective in increasing custom. My stores participate in seasonal activities, such as the Christmas lights switch-on, by providing refreshments for the carol singers and being included in the Easter-egg hunt. I also look after those running the local events such as the street wardens by supplying them with free subs to keep them going.
As well as participating in a variety of local events, I also actively sponsor and provide products for local groups and clubs. I sponsor a local Tae Kwon Do group, as well as provide free samples from the Low Fat Subs range to our local slimming groups. Activities such as these have generated excellent return business and a very loyal customer base.
Local store marketing encourages positive word of mouth, which is still one of the most effective and invaluable methods of marketing your business to your target audience. Local business meetings are not only a good way of networking but also a fantastic chance to market your product to a professional audience. My advice to any franchisee who is committed to making their store a success is take the time to invest in local marketing strategies and actively become a part of their community. After all, the success of your store is going to rely on those living in the area, so some early investment in them will pay off in the long run. Autumn 2014 elitefranchise 65
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ADVERTISING FEATURE
Dublcheck doubles down the decades Now entering into its 21st year, Dublcheck reflects on its anniversary celebrations and the success of franchisees
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s one of the fastest growing and most successful franchises in the UK, 2013 has certainly been a big year for Dublcheck, not least because it marked 20 years of business for the leading commercial cleaning company. Deciding to celebrate in style, the franchise hosted a glittering ball to recognise the many achievements of the organisation and its franchisees. The ball, hosted by founder and Chairman Carol Stewart-Gill, was held in the Leverhulme Stand at the historic Chester Racecourse. Over 120 guests attended the superb occasion and enjoyed a champagne reception, dinner and an evening of entertainment. Guests were treated to a dazzling performance from world modern jive dance champions and franchisee owners Hazel Surguy-Price and John Lloyd. An outstanding performance by acoustic reggae and Latinostyle band Duncan Disorderly & The Scallywags brought everyone to the dance floor and got the evening into full swing. Speaking passionately on the night about the company she founded in 1993, Carol StewartGill said, “It is fabulous to be sharing the achievements of this wonderful organisation with our franchisees. Success only comes with hard work, grit and determination, and this evening demonstrates the commitment of our franchisees and dedicated head office team.” Len Donnelly won the prestigious Dublcheck 20th Anniversary Award. Since joining the
member of
Dublcheck network over six years you a success. Dublcheck’s “We can’t thank make ago, Len has amassed an annual approved training programme our franchisees will make you a professional in turnover in excess of £325,000. To recognise his ongoing growth your field. Having been in the enough for and exceptional quality service, business of setting people up in the sustaining our commercial cleaning business for Dublcheck awarded Len a holiday reputation as for two at the luxurious Bellagio twenty years, Dublcheck knows Hotel, Las Vegas. how to deliver. When you invest in a high quality Carol congratulated and thanked a franchise, our committed head and committed office team will not only walk you franchisees for maintaining Dublcheck’s values and for through a comprehensive training organisation” providing exceptional customer course but it will also go that Carol Stewart-Gill, founder and Chairman, Dublcheck service standards, “We can’t extra mile by obtaining cleaning thank our franchisees enough for contracts on your behalf. sustaining our reputation as a high quality and Founded in 1993, Dublcheck is the UK’s leading committed organisation. We look forward to even franchised commercial cleaning company and more exciting and prosperous years ahead.” has been recognised as the 20th fastest growing private company by Virgin Fast Track and The About Dublcheck Sunday Times. With over a hundred franchisees Dublcheck is a franchise that requires few sales in operation, Dublcheck remains a wholly owned skills. All the business is obtained on behalf British company. Carol Stewart-Gill says with of our franchisees so they know exactly what confidence, “If you put in the effort and follow the their turnover will be. You can start with a Dublcheck System, huge rewards can be realised!” minimum turnover of £14,950 per annum if you want to run a hands-on business, starting small whilst retaining the security of your current employment, or you can purchase a franchise Dublcheck worth half a million pounds per annum by operating a management business. Opportunities Website: www.dublcheck.co.uk are endless: there is no upper limit. Email: franchise@dublcheck.co.uk Whatever your background, investing in a Phone: 0800 317236 Dublcheck Commercial Cleaning Franchise can
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Dublcheck ad/advertorial July14 .indd 1
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