Elite Franchise Magazine October 2015

OCTOBER 2015

THE KEY TO SUCCESS Whether it’s building an AIM-listed lettings and sales franchise with over 200 sites or netting medals for international triathlons, Mike Goddard, founder, CEO and executive chairman of Belvoir lettings, knows what it takes to triumph Cover Oct15.indd 1

OCTOBER 2015

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Own the assets for life Platinum Property Partners enables both novice and seasoned property investors to build their own sustainable and profitable buy-to-let business, where they own the assets forever and earn an income for life.

BE MORE. DO MORE. HAVE MORE. GIVE MORE.

01202 652101

www.platinumpropertypartners.co.uk/elt info@platinumpropertypartners.co.uk EliteFranchise1015.indd 1

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ADVERTISING FEATURE

Paul and Linda Cronin

Wanted a business for himself but not by himself After 30 years building an impressive corporate career in the IT world, Paul Cronin felt the urge to get out of the rat race and run his own business.

His career culminated in the role of VP of Sales for a telecommunications software company.

Paul and Linda Cronin

Partners since 2010

With his three children now young adults, Paul began to reassess his options.

Paul and his wife Linda decided they wanted a business they could run together and, having already invested in property previously, it presented an attractive option.

“When we first ventured into the world of property investment, the benefits were fairly intangible. Buying and selling was risky because we were assuming there would be short term capital growth. Before setting out on our own again, we recognised that we needed a more certain return on investment in respect to both our time and money.

“We were struggling to choose between six excellent franchises, until I realised that Platinum Property Partners had two features that set it apart. Firstly, the other franchises required continuous selling – fail to sell sufficiently and the business fails to exist – PPP offers the attraction of passive income after some initial hard work, without the sales slog I was trying to get away from. Secondly, where most other franchises leave you with just good will, with PPP we are accumulating tangible, appreciating assets in bricks and mortar. These were the key reasons we selected PPP.”

THE FIGURES Total Portfolio Value:

£1,214,838

Annual Rental Income: £180,588 Annual Rental Profit:

£103,869

Return on Equity:

15%

“

I’d always wanted to start my own business but knew that at this point in my life there was no room for mistakes. When I found PPP, it was a light bulb moment. I realised that with hard work and the right execution, I would have my own successful business and tangible assets that would give me a passive income later in life.

Paul and Linda joined the PPP franchise in April 2010, through which they are building a highly cash-positive property portfolio. They now have five HMOs up and running and sixth in the pipeline. The five properties produce £103,869 rental income profit per year. That’s after paying all costs including mortgage, bills and maintenance and allowing for voids and PPP’s management service fees.

“A large part of our decision to join PPP was down to the integrity of Steve Bolton and quality of the network – both professional advisors and the other Partners,” said Paul. “We are now working with some truly great people who approach life with a very giving attitude and a philosophy of sharing their time and skills freely. The focus is on achieving financial freedom and thus being able to choose how and with whom we spend our time. Being part of such a community has already had an incredibly positive impact on our lives. Linda and I are enjoying more time together while giving something back; we’ve found a way to address the balance between input and return and are enjoying all the personal and financial rewards of running our own business.”

“

Call us on 01202 652101

platinumpropertypartners.co.uk info@platinumpropertypartners.co.uk

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ADVERTISING FEATURE

A sure thing

guidance of the team we may have faltered at the first hurdle but we knew – and still know to this day – that if we have any problems they are on the end of the phone to lend a helping hand.

With other property franchises it’s all about numbers – they set the franchisees up and then move on to the next. With SurePropertyGroup they are very focussed on working in partnership with you. As well as giving you constant support, they value your creative and technical input. The entire network is in a fantastic position to recommend new ideas and the SurePropertyGroup team will listen. You’re not just a number.

What support and training was given?

There was a four-week comprehensive training course with a series of tests at the end. We learnt both in the classroom and in the field but for us the best aspect of the process was going into our chosen area, Hemel Hempstead, and working through the research with the SurePropertyGroup team.

Having spent many years working for Goldman Sachs and Morgan Stanley, cousins Sunil Mehta and Nimesh Shah had become tired of the rat race

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hey wanted something tangible – a business, not just a career. That’s why they chose a SureLet franchise back in October 2003 and it has now evolved into the SurePropertyGroup. Here, the pair share their experiences, stories and advice about the world of franchising.

Why franchising?

We loved our previous jobs and the fast-paced, competitive, highly lucrative elements were exactly what we lived for. But the love for the job faded when we started thinking about settling down and starting families.

The main turning point was when one of our MDs mentioned that he’d missed his son’s nativity play three years in a row.

Many of our friends said we should set up a business on our own. We researched the differing industries and decided that our skill set matched

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that of lettings. Whilst we wanted to go it alone, we didn’t want to simply wander blindly into the legal minefield associated with the industry, so investing in a franchise seemed the best option. With a franchise you already have an established team of legal professionals and highly experienced support network on which you can call if you need help.

Also the initial set up costs when starting a business can be excessive, whereas with a franchise, you already have these in place.

Why SurePropertyGroup?

With the SurePropertyGroup model, we have the flexibility to go out and do the fun side of the job without being bogged down with the administrative aspects of a sales and lettings business.

It gave us a fantastic framework with which to start and grow a successful business. Without the support and

How is business going so far?

Business is going really well for us at the moment. Over the years we’ve managed to establish ourselves as the number one lettings agency in Hemel Hempstead. We still look after the first ever house we took on as an agency in 2003, which tells you everything you need to know about the quality of our service.

Would you recommend franchising to people considering starting a business for the first time?

We would definitely recommend franchising to those wishing to start their own business. It gives you a process, a proven model and a strategic framework on which to build a healthy business. The main piece of advice we would give to people is to research your area and industry as thoroughly as possible.

What does the future hold?

Our focus is to build on the solid foundations we have laid.

We have recently started to get more involved in franchise sales, as well as maintaining our existing sales and lettings business.

We now have the life we want. We have put a lot into our business and that’s the best part of it: it is our business.

More importantly, we’re both pleased to say that we haven’t missed any of our kids’ plays!

For more information on SurePropertyGroup Franchising call 01452 313313, email info@surepropertygroup.com or visit www.surepropertygroup.com. To contact Sunil and Nimesh, please call 01442 252579.

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The Elite interview Mike Goddard is going the distance with Belvoir Lettings

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elitefranchise | October 2015

Contents.indd 1

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39 56

56 Why franchising works for women 9 Editor’s letter 10 Contributors 12 News & events 14 Talking point 80 Franchise diaries

25 Wok & roll

Hotcha has its eyes set on becoming the Domino’s of Chinese food

32 Serving up success

What makes food and franchising a match made in heaven?

39 On the ball

The world has fallen in love with Little Kickers

45 Mastering the money Firming up the financials is essential for master franchisees

52 In or out?

Marketing your franchise starts with one simple question: to outsource or not to outsource?

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Franchises are wellsuited to the female touch

60 Young guns

Making the most of millennials can make all the difference

64 Better connected

Strong internal comms ensures the smooth running of a franchise

69 End of the line

There are processes to follow when letting a franchisee go October 2015 | elitefranchise

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Over 44,000 stores in more than 110 countries worldwide

This is your chance to get on board with the

Number One Franchise Opportunity! *

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

2 70% of franchises purchased by existing owners

We’re celebrating!

Over 2,000 stores

now open in the UK and Ireland

To find out more visit

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

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VOLUME 03 ISSUE 08 / 2015

SALES Adam Reynolds – Ad Sales Manager adam.reynolds@cemedia.co.uk Gemma Campion – Account Manager gemma.campion@cemedia.co.uk EDITORIAL Adam Pescod - Acting Editor adam.pescod@cemedia.co.uk Josh Russell – Acting Web Editor josh.russell@cemedia.co.uk DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Dan Lecount Web Development Manager dan@cemedia.co.uk CIRCULATION Paul Kirby – Circulation & Data Manager paul.kirby@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk Colin Munday – Management Accountant colin.munday@cemedia.co.uk ADMINISTRATION Georgie Marshall – Administrator georgie.marshall@cemedia.co.uk DIRECTOR Scott English – Managing Director scott.english@cemedia.co.uk

The five secrets of franchise success It hard not to admire Mike Goddard. Since 1995, the founder, executive chairman and CEO of Belvoir Lettings has grown the AIM-listed company to over 200 outlets across the UK. But that’s less than half of his story. Among other feats, Goddard has served 17 years with the RAF, broken the world record for running up and down Mount Kenya and won silver in the triathlon at the European Championships.

Five things have driven Goddard to succeed in everything he’s done: drive, enthusiasm, energy, passion and a degree of risk-taking.

These traits are also shared by Christine Stanschus, whose children’s football coaching franchise Little Kickers has been a hit at home and abroad, and James Liang, the ambitious young entrepreneur who’s hoping to turn Hotcha into the Domino’s of Chinese food.

It doesn’t matter whether you’re letting houses, teaching football to kids or selling Chinese food. These five things will get anyone far in franchising.

Adam Pescod - ACTING EDITOR adam.pescod@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 No part of Elite Franchise may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor.

Elite Franchise will make every effort to return picture material, but this is at the owner’s risk.

Due to the nature of the printing process, images can be subject to a variation of up to 15%, therefore CE Media Limited cannot be held responsible for such variation.

cemedia.co.uk

October 2015 | elitefranchise

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Jon Card A writer and journalist specialising in small business and enterprise, Card penned this month’s feature on how franchises can improve their internal communications.

Card moved to Brighton at the start of the year and so felt little need to go on holiday this summer as he “lives by the sea, so what’s the point?” However, he did manage to blag his way on to press trips to San Francisco and Monaco this year, so we will see how long he lasts before the travel bug bites again.

Kate Lester While we wouldn’t dare suggest that business took a backseat for Lester this summer, she certainly enjoyed her fair share of travelling. As well as eating and drinking her way across Bordeaux, Portugal and Halkidiki, Lester also took her parents to their first ever festival, an experience she describes as “hilarious”. Now back on home soil, Lester has set off on another adventure: a nationwide tour of Diamond Logistics’ franchise network.

Geoffrey Sturgess Sturgess has been practicing franchise law since the 1980s; he became an affiliate of the bfa in 1991 before serving a (brief) tenure on the bfa board. Given his extensive experience in the sector, there can be few better placed to discuss how franchisors can terminate a franchise agreement when a franchisee isn’t cutting the mustard.

When he’s not helping franchises with their legal wrangles, Sturgess likes to unwind by going fishing, heading out on his motorcycle or guiding wild mushroom hunts. A man of many talents then.

Brian Duckett As chairman of the Franchising Centre, Duckett provides advice on a broad range of topics, including franchisee recruitment, training and international franchising and development. This month he runs us through all of the financial considerations that need to be made when purchasing a master franchise. Outside of work, he provides a different kind of support to franchisors and franchisees: with the Franchise Racing Club, he gives those in the franchise community their first insight into the horse racing community.

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The efforts of franchisees are just as important as those of franchisors. That’s why it’s always a pleasure to see so many talented franchisees recognised at the bfa HSBC Franchisee of the Year Awards. The big winner at this year’s ceremony was Lee Eaton of Signs Express Manchester, who scooped both Franchisee of the Year 2015 and B2B Franchisee of the Year 2015. Other winners included Carolyn Sharpe of Puddle Ducks Newcastle, named Female Franchisee of the Year, and Paul Stokes of Little Kickers Hitchin and Bedford, who picked up the gong for Microbusiness Franchisee of the Year. We’re sure you’ll join us in wishing them a hearty congrats.

Molly Maid UK has been sweeping away its competition for more than 30 years; since 1984, the domestic cleaning franchise has amassed a network of 71 franchisees in the UK. And the company has now become 100% UK-owned, following a management buyout led by Kevin Hipkins, Molly Maid’s president in the UK and Canada. It means Molly Maid UK will now operate under a master licence agreement from Molly Maid International, which was first purchased in 1984 by the late Malcolm Tall. Following the buyout, Tall’s wife and CEO of Molly Maid UK, Pam Bader, will remain a board member and active force in the company. It’s onwards and upwards for Molly Maid UK.

WORDS: ADAM PESCOD, JOSH RUSSELL

Dream Doors, the kitchen renovation franchise, has certainly had a busy old summer. In August, it was celebrating the installation of its 40,000th kitchen and last month it was raising a glass of the black stuff as it launched its first franchised showroom in Ireland. The Belfast outlet was opened by Jon O’Hara, who now holds the master licence for both Northern Ireland and the Republic Ireland and is aiming to open five new showrooms across the two countries by the middle of next year. Given O’Hara has prior retail experience at the likes of Dream Beds and Currys, we’d say Dream Doors is in good hands on the Emerald Isle.

It’s not often a franchise expands into a new sector but that’s exactly what SureCare, the care and home services franchise, has done. In a bid to help its franchisees and others in the care sector with their hiring, it has launched its own recruitment service, SureCare Recruitment. The company, which will source people for a wide range of roles including nursing and residential care home managers, care coordinators and regional branch managers, will be headed up by Vikki Donnachie, with Tracy Banks taking care of day-to-day operations. The only headaches care providers will have to worry about now are those of their patients.

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There can hardly be anywhere better to enjoy fish and chips than Harry Ramsden’s, whose restaurants can be found the length and breadth of Blighty. As such, the people of Saudi Arabia must be jumping for joy at the news that it is making a return to the country. A master franchise agreement with the HAAB Group – which helped introduce Harry Ramsden’s to Saudi Arabia a decade ago – will initially see three new restaurants open across the country, with the first expected to be unveiled in Jeddah before the end of the year. It comes hot on the heels of a deal that will see Harry Ramsden’s open five new outlets in Qatar later this year. Wooden forks at the ready, Saudi Arabia.

Subway is an international franchise success story; from just a single restaurant in Connecticut, it has grown to be the world’s largest franchise with more than 44,000 restaurants around the globe. That is why the death of co-founder Fred DeLuca last month was such a blow to the franchise community. DeLuca was instrumental in growing Subway into the world’s biggest restaurant chain, which reportedly serves 2,800 sandwiches a minute. And, while the company’s revenues dropped 3.3% to just under $12bn last year, we’re sure you’ll agree that DeLuca, who died from leukaemia at 67, deserves our heartfelt respects.

Teach a man to fish and you feed him for a lifetime. Alno UK, the parent company of in-toto Kitchens, might not be an expert with a rod but it sure knows kitchens, which is why it’s sponsored a kitchen design degree at Bucks New University.

As well as design techniques, the foundation degree will also cover a range of disciplines including materials, technology, manufacturing and project management. And Alno UK is pitching in to help cash-strapped students foot the bill, providing a bursary to assist them in paying their fees.

Clever stuff.

We’re not going to quibble with any news that brings more coffee to our high streets. That’s why we’re happy to hear that 23.5 Degrees, Starbucks’ first ever franchisee, has completed a massive funding round to help expand the coffee shop’s UK presence. The company has leveraged an initial £5.6m from Connection Capital to secure debt finance from RBS, pushing it up to a total of £10m. As this will help 23.5 Degrees bring 100 more Starbucks outlets to Britain’s high streets in the next five years, it definitely sounds like this funding will give its expansion plans a much-needed caffeine kick.

upcoming events NatWest Franchise Seminar October 13 RBS/NatWest Building, 280 Bishopsgate, London, EC2M 4RB NatWest Franchise Seminar October 27 Hilton Manchester Airport, Manchester, M90 4WP

The Franchise Conference and Supplier Showcase November 4 The University of Warwick, Coventry, CV4 7AL

bfa Prospective Franchisor Seminar November 24 Wey House, Farnham Road, Guildford, GU1 4XS

bfa Prospective Franchisee Seminar November 25 Wey House, Farnham Road, Guildford, GU1 4XS

Women in Franchising November 17 Stratford Manor, Warwick Rd, Stratford-upon Avon, CV37 0PY

NatWest Franchise Seminar November 24 Hyatt Regency, 2 Bridge Street, Birmingham, B1 2JZ

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

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

October 2015 | elitefranchise

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Recruitment 2.0 How big an impact has the internet had on franchisee recruitment?

Franchisors should wholeheartedly embrace the internet Richard Dancy, director, Barking Mad

The internet has fundamentally changed franchisee recruitment, especially in the UK. Prospective franchisees used to depend on a small number of media sources that offered restricted knowledge but there is now an unlimited list of publishers and commentators that can instantly find enormous amounts of information on any franchise brand.

Whether this is progress or not depends on one’s perspective but my own personal view is that the internet should be wholeheartedly embraced as an excellent way of bringing in and filtering new franchise prospects. A prospective new franchise owner can have a greater number of his or her questions answered before a meeting and it also allows the buyer and seller to reach each other in a more efficient way.

Does this mean we are recruiting any more franchisees? Those who actively take advantage of the web should be able to monitor results and will find their efforts are more efficient. However, as we all adopt these new methods, we will probably find we’re recruiting the same number of franchisees but just using a different media.

It will take a brave person to rely on old school methods Louise Harris, franchise director, Wilkins Chimney Sweep

WORDS: Adam pescod

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t’s hard to imagine an Internet-less world now but – believe it or not – there was a time before the world wide web.

Predictably, as with any industry, the internet has had a marked impact on the franchising sector both overseas and in the UK. Not only have franchises had to get to the grips with the scary world of social media but they’ve also had to up their game when it comes to content.

However, while customers expect all companies to have an online presence, can the same be said of prospective franchisees?

How would they react to a franchise that isn’t weaving its magic on the web? Put simply, has the internet irrevocably transformed the way that franchisors recruit new franchisees or can they still rely on traditional channels?

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The internet was thriving when we first franchised in 2011 and recruitment portals were sufficient exposure. A teaser of information encouraged prospects to request more but now, with social media, applicants can gather far more data before they even engage with us.

This means we must dedicate time to providing managed content to the web that will attract enquirers. However, it also means there is less opportunity to correct misunderstandings and engage the imagination of the prospect.

It certainly feels like more of a challenge now. There are specialists advising you to display all of your wares in public to help prospects make a choice but we know that many of our franchisees chose us based on us, not on our online content. We want to engage with individuals who like the social interaction of our business. In short, we want ‘people people’.

Ultimately, franchisee recruitment has changed and there isn’t an easy answer other than to go with the flow. It will take a brave person not to follow the crowd and risk using only old school methods for recruitment.

elitefranchise | October 2015

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THE ELITE INTERVIEW

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BY JOSH RUS-

alking to Mike Goddard, the founder, executive chairman and CEO of Belvoir Lettings, you get the sense that he could master anything he turns his mind to. He’s certainly worn many hats in his life, whether they be CEO, RAF wing commander, property developer or world-class triathlete. From building an award-winning lettings business to smashing a world record, Goddard knows what it takes to reach the top. “Drive, enthusiasm, energy, passion, a degree of risk-taking,” he says. “If you bring all of those together, you can succeed at anything.”

Goddard’s story began in West Sussex. He grew up near the coast and attended a traditional grammar school before going on to study chemical engineering at Swansea. But he never put his degree to use: shortly after he graduated he decided to do some voluntary service in Kenya. And a year out eventually became seven: Goddard did briefly return to Britain but only to pick up a post-graduate certificate in education, before heading back to Africa to work with the ministry of overseas development.

It was whilst out in Kenya that Goddard got to exercise one of his greatest passions. “I have always been a runner, right back to running for my university,” he says. “My mountaineering and running exploits were quite extensive.” This is something of an understatement: during his time in Africa he completed ten ascents of Kilimanjaro and 46 ascents of Mount Kenya, respectively the highest and the second highest mountains in Africa. “Probably my biggest claim to fame is breaking the world record for running up Mount Kenya and back,” he says. It took Goddard just four hours and 38 minutes to travel to the summit at 16,500 feet and back again. “I wouldn’t do it these days,” he laughs.

When he finally did return from Africa, Goddard was faced with a decision: he was offered two different positions, one working as a chemistry teacher at Bedford School and the other serving in the Royal Airforce (RAF). “I took the commission in the Royal Airforce because it paid me £200 a year more,” he says. “Money was quite important, even in those days.” Thus began a 17-year career in the education branch of the RAF, during which time he worked his way up from pilot officer – through flying officer, flight lieutenant and squadron leader – to wing commander.

By 1995, Goddard was 45 and beginning to feel that it was time for a change of pace. “I thought there was more to life than working in the Royal Airforce for the next ten years,” he says. Gradually as he’d worked his way up the ranks, his role had

When Mike Goddard’s not presiding over a publicly listed sales and lettings franchise, he’s running up mountains with Olympic athletes. It doesn’t look like the founder and CEO of Belvoir Lettings will lose the spring in his step any time soon BY josh Russell

October 2015 | elitefranchise

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THE ELITE INTERVIEW

become less focused on education and increasingly bogged down in admin, leaving him longing for something more hands-on. So he and his wife Stephanie started to look for a new opportunity. “We wanted to be in control of our own destiny; we thought running a business was the way forward,” Goddard says.

Looking around, Goddard quickly realised there was one industry in dire need of disruption: lettings. “At the time, buy-to-let wasn’t an expression,” he recalls. “Lettings was a bit of a dirty word: it was something you did if you couldn’t afford to buy.” There were few big brands in the lettings space and Goddard was convinced there was room for someone with a different approach.

Originally Goddard didn’t have particularly grand plans for Belvoir. “I had no ambitions to grow a nationwide network of franchises: it wasn’t even on the horizon,” he says. It wasn’t until the business had been running for 12 months that a friend providing resettlement advice for those leaving the military suggested he take a look at the franchising model. “It just suddenly clicked that this was a fantastic way of leveraging my time so I could grow faster than I would have as a corporate,” he says. “It was one of those eureka moments.”

Building a franchise network is easier said than done but this encounter also helped Goddard realise he had an enormous asset at his disposal: a huge pool of ex-military personnel who, like himself, would have been looking for new careers on their return to civilian life. “I made great efforts to speak to the military, to go to their resettlement courses, to advertise in their resettlement magazines,” says Goddard. “I put myself forward as a trustworthy, respectful, ethical, ex-airforce officer.” Before long, Belvoir had a network of 12 ex-military franchisees and was ready to start achieving some serious growth.

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Growing its network from there has required Belvoir to give its franchisees a little extra. One of the ways in which it’s been able to attract interest is by providing comprehensive support for those that buy into the franchise. Out of the gate, Belvoir provides its franchisees access to business development managers and a team of auditors to help build their business in the early months.

“Gradually, as we wean them off of that, we visit them once or twice a year but we also have a whole host of staff ready to answer their queries,” he says.

Another factor that has been fundamental to Belvoir’s growth has been an ability to set itself apart from the competition. “We have differentiated ourselves with integrity, strong ethics and a very strict adherence to a recognised brand,” Goddard says. Brand is very important to Belvoir but Goddard stresses that it’s not just about logos, trademarked colours or marketing slogans. Just as 18

elitefranchise | October 2015

THE ELITE INTERVIEW

important has been building a position of trust acquired for £3.9m back in July. “I’ve known with customers and establishing a reputation as a [founder and chief executive] Mark Newton specialist in lettings. “We believe in a very highfor many years,” says Goddard. “When he was quality service,” Goddard says. “And we try to looking at exiting, he came and asked me whether instill that throughout our whole network.”

I might be interested.” Not only has this purchase Something else that has undoubtedly created a multi-brand strategy given Belvoir a good deal of credibility that brings additional diversity to I was famously as a franchise is its founder’s profile Belvoir’s holdings but it also allows within the sector – Goddard is a both brands to access valuable skills. quoted as saying former chairman of the British “Newton Fallowell brings a lot of [we’d enter sales] sales experience; we bring a lot of Franchise Association (bfa). Having already served a short tenure as the lettings experience,” he says. “So it’s ‘over my dead bfa’s director, Goddard was invited by working very well.” body’. I should director general Brian Smart to fill the But Belvoir has taken another role of chairman in April 2008. “It was step that is likely to have a far more learn, shouldn’t very daunting,” says Goddard. “But radical impact on its fortunes than I? Never say being an owner-founder, people could acquiring other brands or entering never relate to me and I could give them the new verticals. Back in 2012, it benefit of my experience, having been made the decision to list on AIM, there myself.” And he evidently proved something that can prove to be popular in the position; the bfa bent the rules to a controversial move in the franchise sector. keep hold of him. “Normally you only have a two“There are people who feel that the interests year tenure and then you have to stop; they asked of the shareholder can be to the detriment of me to stay on for a third,” he says. the interests of the franchisee,” Goddard says.

And the bfa isn’t the only body that has “I totally disagree with that.” Instead he feels sought out Goddard’s expertise; in 2010, he was floating on AIM has had some serious benefits for also invited to join the board of the Property Belvoir’s franchisees.

Ombudsman. “At the time, the Property As well as driving publicity for Belvoir and Ombudsman scheme was very orientated giving it a concrete valuation, listing on AIM toward sales agents and, as lettings was growing, actually also gave the network some much needed they wanted somebody who had deep lettings security. If Belvoir hadn’t listed, it would have experience,” Goddard explains. This made the been impossible for Goddard’s shares to have any founder of Belvoir the natural choice to bring an liquidity without a full sale. Obviously this made infusion of additional expertise. franchisees a little twitchy. “They were worried But it seems this cut both ways. Not only did I might sell out to one of the big boys,” he says. the Property Ombudsman benefit from Belvoir’s “But I didn’t want to exit and I didn’t want to lettings experience, it seems the franchisor also sell; I just wanted to be able to release some of learnt a few things working shoulder-to-shoulder with sales agents: by September 2013, it had decided to tackle the sales market and announced the launch of an estate agency pilot. In hindsight, Goddard feels Belvoir’s move into sales was perhaps inevitable. “I was famously quoted as saying ‘over my dead body’,” he says. “I should learn, shouldn’t I? Never say never.”

The franchise’s reasoning for expanding into the sales market was twofold: firstly whenever it did customer research, it found consumers were often under the impression that Belvoir already handled both lettings and sales. Secondly, when any Belvoir client wanted to sell a property, the letting agent was forced to refer the business, meaning it often ended up losing a client in the process. “We decided that we were missing a trick,” Goddard says.

This was, in part, the motivation behind the recent acquisition of Newton Fallowell, the east Midlands estate agent, whose 31 sites Belvoir October 2015 | elitefranchise

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Multi-award winners and...

The UK’s largest provider of estate agency board services Agency Express is the largest estate agency ‘For Sale’ board erection & maintenance company in the UK, with over 110 franchise operators covering the UK. Agency Express already carries out work for all of the top 20 estate agency chains and currently erects over 40% of all ‘For Sale’ & ‘To Let’ boards displayed in the UK.

Franchise success • A proven franchise with 15 year track record • Extensive national account business • Van based - very low overheads • Single van turnover up to £87,000 • Family friendly working hours • 100% daily repeat business • Up to 70% bank funding • Centralised invoicing & credit control • Complete franchise package £21,500

call 01508 579800 enquiries@agencyexpress.co.uk www.agencyexpress.co.uk

@AgencyExpress

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Agency Express

06/10/2015 12:25

THE ELITE INTERVIEW

my shares.” And the IPO also allowed Belvoir to bring in some extra funding, £5m of which it lent to franchisees to grow their businesses. “It was hugely beneficial to the franchise owners,” Goddard says.

You can’t argue with the results: Belvoir had expanded organically to more than 160 sites by the beginning of 2015, with the acquisition of Newton Fallowell pushing it up to 193. And, following its purchase of Goodchilds Estate Agents and Lettings this month, Belvoir’s network now stands at 211. For Goddard, this marks the beginning of a whole new stage of growth. “What’s happening now is a fundamental change,” says Goddard. “We’re arguably becoming the best out there.”

But the nature of Belvoir’s service isn’t the only thing that has shifted over the years. “My role has changed dramatically,” Goddard says. Whilst

What’s happening now is a fundamental change.

We’re arguably becoming the best out there

still acting as both CEO and chairman of Belvoir, Goddard has brought in a wide range of talent to manage the day-to-day running of the business whilst he focuses on more strategic goals. “I joke that they bring out the Zimmer frame once or twice a year,” he says.

“Obviously there’s a lot more to it than that.”

One of the benefits of Goddard’s changing role is that it has allowed him the chance to focus on some extracurricular interests.

In 2009, he and his wife stumbled across a property up in the Scottish Borders and immediately fell in love. “It was an ex-hotel, 34 bedrooms, very rundown and we’ve taken it on as a project to bring it back to its original standards,” he says. From installing ground source heating to building an artificial lake, the Goddards have returned the Hartree Estates to its former glory and created a new heart to the community. “We recently had a Hartree open day for 300 people, raising money for Macmillan and another local charity,” he says.

And, despite his joke about Zimmer frames, Goddard’s fitness could put most younger businesspeople to shame. For the last five years, he has been making waves as a triathlete, something he got into when he travelled to see his son compete in the World Championship Paratriathlon in Budapest. At a competition after party, someone asked him whether he’d ever considered taking part in a triathlon. “I said ‘I can’t swim and I’ve not ridden a bike since I was a kid’. They said ‘well give it a go’. To cut a long story short: I gave it a go,” he laughs.

Goddard rapidly became one of the best in the world for his age group, representing Britain on the international stage. “I got a silver medal at the European championships and came fourth in the world championships in New Zealand,” he says.

“It just gives me a buzz.”

And evidently old habits die hard: in 2013, Goddard mounted a new expedition up Mount Kilamanjaro, this time with a couple of Olympic athletes in tow. After the London Olympics, he wrote to Alistair and Jonathan Brownlee, who won gold and bronze respectively. “I said ‘you don’t know me but I’m an amateur triathlete and I’d like to take you up Kilamanjaro’,” he recalls. Charmed by his invitation, they agreed: the trio successfully reached the summit and camped in the crater. “We’ve been close friends ever since.”

Clearly there is a dynamism about Goddard that keeps him striving to prosper in new fields. “Most people of my age will have retired by now,” he says. “It’s unusual for someone like me to still be at the helm of a listed company.”

So what’s his secret? “You’ve got to have a strong sense of commitment and a burning desire to be successful,” he says.

“If that’s deep down inside you, you will get through the really tough times.”

October 2015 | elitefranchise

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ADVERTISING FEATURE

Ten reasons why people become a Drain Doctor franchisee 1. They want to improve their profits They are looking for a better method to help improve their bottom line profits that their old business had not been able to provide.

2. Growth They want to grow and take more market share. Some business owners joine because they want faster growth, while some join because their former business had reached a plateau or had grown too slowly.

3. Quality of life Many business owners who become a Drain Doctor franchisee are looking for a better quality of life. They were working 12-14 hours a day. They want more time for family and personal life that their former business was not providing. They had made the classic mistake of building the business around themselves and not around systems.

When a business is built around a system, the system manages the people and the owner manages the system.

4. Family and employees Many business owners desire to turn their business over to their children or a key employee. Business owners know that it is not unusual for a business to struggle and even go out of business because they built the business around themselves and not around systems. Many of them become a Drain Doctor franchisee because they need systems that give the family or employee who takes over the business a much greater chance of succeeding.

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Drain Doctor has developed relationships with national companies to which they can supply their services on a nationwide basis

elitefranchise | October 2015

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ADVERTISING FEATURE

5. Wearing too many hats Many business owners don’t own their business; their business owns them. The current way they are running their business does not allow them to spend their time building the business. Their time is spent putting out fires. They are looking for systems that could free up their time to do the most important thing: building their business.

6. Being unable to sell the business When the day comes to retire or cash out, business owners often find they can’t sell their business or get much for it because they didn’t create a business that has a good resale value. They do not know how to position their business as a high value property that could significantly add to their retirement savings. In fact, many business owners are not able to retire because they built their business around themselves and not systems.

big companies now joining the trend. These people see how national branding and national buying power helps them stay more competitive while giving them an edge over the competition.

8. National accounts Drain Doctor has developed relationships with national companies to which they supply their services on a nationwide basis. It can be difficult to trade with these companies other than on a national basis.

Purchasing a franchise can be the gateway to obtaining a share of this business within your franchised area.

9. Retirement Many business owners join Drain Doctor

because they are not on track to reach the amount they needed in savings for a proper retirement.

10. Research and development Most business owners today do no research and development to stay on top of their industry. Changes are so rapid in business today that it is almost impossible for a business to keep up with all the daily industry changes taking place.

For more information contact: Jan Mitman t: 01733 753 939 www.draindoctor.co.uk

7. Trend changes Many business owners join Drain Doctor to take advantage of the changes franchising has made to the business world over the last 50 years. A large number of industries have converted to franchising to have a competitive advantage. A growing percentage of all retail business today is being done through franchising, with many October 2015 | elitefranchise

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

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

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

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06/10/2015 14:01

ONE TO WATCH

Wok & roll

WORDS: ADAM PESCOD

R

esearch released last year by MyVouchersCodes.co.uk revealed that we spend almost £30m on fast food and takeaways annually. But it’s not curry, pizza or even fish and chips that comes top of the pile as the nation’s favourite takeaway. Suffice to say, the British love affair with Chinese food doesn’t look like ending anytime soon.

Yet for every Domino’s or Harry Ramsden’s, you’d be hard-pushed to name a national brand that is synonymous with Chinese cuisine. While one could argue this is because we’re happy enough ordering from our local takeaway and waiting as long as it takes to tuck into our prawn toasts, there are sounder reasons for this gap in the market. These are explained by James Liang, co-founder and managing director of Hotcha, the Chinese takeaway chain that is

Chinese takeaway chain Hotcha looks set to shake up the British fastfood sector

hoping to shake up the sector.

“Chinese cuisine is such a complex operation and relies on years of experience of being a chef to be able to run a busy kitchen,” says Liang. “If you are trying to develop a brand, there is no way you can rely on that kind of operation. How are you going to find enough experienced chefs to run all of those kitchens for you?”

Liang established Hotcha in 2011 with his friend Andy Chan, who he’d met while studying at University College London (UCL). While Chan has since returned to Hong Kong, he still retains a position on Hotcha’s board.

The pair had previously run West Decor UK, an import business whose customers included House of Fraser, Argos, B&Q and Homebase. However, the flourishing Chinese economy meant they were unable October 2015 | elitefranchise

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ONE TO WATCH

to sustain that particular venture.

“Towards the back end of 2009, the Chinese economy shot up quite quickly and labour costs went up three times in a year, so we as the middlemen got squeezed out of the market,” Liang explains. “That was when we decided that we wanted to develop our own retail brand.”

It wasn’t clear at that stage what sector they’d target but the business partners soon identified the perfect opportunity. “We had a lot of friends whose parents or grandparents owned Chinese restaurants or takeaways,” says Liang. “I got a lot of insight into the industry and one of the fascinating things we found was that, while the Chinese food market is twice the of the pizza market, there is no national brand. So we set up Hotcha at the back end of 2011 with the aim of developing it into a national brand.”

Despite toying with the idea of launching the business in London, the entrepreneurs found a more natural home a little further afield.

“We thought about starting up in London but the startup costs were way too high,” explains Liang. “We looked at our target customers and realised they are quite well populated in the south west so we decided to launch in Bristol, which is the biggest city in that part of the country.”

Liang has his eyes set on turning 26

Hotcha into the Domino’s of Chinese food. He believes the pizza chain is currently setting the standard for takeaway service; a standard he’d like to match or surpass. “Domino’s is delivering within 25 minutes and we have to make sure that we at least match that if we want to be able to compete on the service level.”

Undoubtedly, while people might have a certain affinity with their local takeaway, Liang is sure they would look elsewhere for the sake of shaving some precious minutes off their waiting time. “People are not going to come to you because you sell the cheapest egg fried rice or chicken chow mein; the only thing that matters in the takeaway industry is the speed of service,” he says. “If you can consistently deliver your order within half an hour every single time, customer loyalty is going to be a lot higher.”

But that’s not to say the food takes a backseat. Hotcha’s menu boasts all of the British classics with a few authentic dishes thrown in for good measure. “If you look at the other independent takeaways, their menus will stay the same for quite some time,” says Liang. “It’s hard for people to change their mindset but we have something new on the menu every quarter to at least entice them to try.”

All of Hotcha’s recipes are devised by its executive chefs in a central kitchen, with all ingredients prepared before they are delivered to the restaurants. Not only does this ensure a consistent level of food quality across the board, it also means Hotcha doesn’t have to worry about finding experienced chefs for each and every one of its sites.

The only thing that matters in the takeaway industry is the speed of service

elitefranchise | October 2015

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Grow... faster Franchise Top 10 works with selected franchise systems to complement their existing recruitment programmes with an ongoing marketing campaign across multiple media platforms.

We work closely with our clients to bring new leads to their business for them to convert into prospects for their system.

Franchise Top 10 services: • We provide additional leads for your available franchise territories • Predominantly success related fee payment – pay for results • Ongoing marketing campaign – not just a website • Success – we produce half of all new franchise contracts for most of our Franchise Top 10 clients • Over 60 years combined franchise knowledge and experience • Over 1,200 franchise contracts over last 10 years • Currently generating over 1,000 franchise leads per month • Our focus: Lead Generation

For more information call James O’Brien for a confidential discussion on 0207 0789 089 or email him: james@FT10.co.uk Franchise Top 10 will launch in October 2015 and is run by experienced franchisors—people like you who know the challenges of growing your business in a competitive market. Our support system for franchisors may be new to the UK but we are not inexperienced and we believe that our system will help you achieve your plans for growth in 2016.

Franchise Top Ten Aug15.indd 1

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ONE TO WATCH

“Our main focus was on simplifying the operations so that anyone can learn it in six weeks,” explains Liang.

“It will take us about four to five weeks to train anyone to a good level of skill.”

Liang is now looking to franchise Hotcha nationwide, something the company wasn’t quite ready for when the idea was first floated back in 2012. “I met Andrew Emmerson who was the business development director at Domino’s at the time,” says Liang. “He told me about the Domino’s model being purely a franchise but at the time I didn’t think we were at the right stage to franchise the business because we were still developing our systems and trying to get the in-store profitability high enough to make it a viable business for franchisees.”

Three years later, and with Emmerson on board as an advisor,

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It will take us about four to five weeks to train anyone to a good level of skill

Hotcha has already signed up its first franchisees, who will be opening their doors in the coming months. “So far we have signed up three franchisees, two of whom have signed up a ten-store development over a five-year period,” says Liang. “And two out of the three are currently Domino’s operators so they know the takeaway industry very well.”

However, experience isn’t everything for prospective Hotcha franchisees. As long as candidates have a working knowledge of the industry and a solid business acumen to boot, that’s all that matters to Liang. “Finding the right partners is more important than anything in franchising,” he says. “Obviously you can’t just ask them to have takeaway experience but at the very least we’re looking for someone who understands and knows how to develop a business. We can then work with them and make them understand what really drives this brand.”

Hotcha is hoping to expand from ten to 100 stores within the next five years, opening one corporate store per year in its West Country heartland in addition to between ten and 15 franchised stores on an annual basis.

“Our model is set up on deliveries so we want to look mainly at populated towns that have a lot of addresses and a good percentage of high-propensity customers,” says Liang. “When I say high propensity, that means customers that are students or young professionals with families. Those are the customers that order from us most frequently so we will attack towns with those types of customers first.”

While Hotcha looks to have enough on its plate for the next few years, that hasn’t stopped Liang broadening his horizons. The UK may be the adopted home of Chinese food outside of China but Liang says there is also a lot of interest across Europe, Australia and America.

“Hotcha is not just a British brand. It can go international,” he concludes.

elitefranchise | October 2015

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Enjoy a safe and secure future with Dublcheck

Founded in 1993, Dublcheck is the UK’s leading franchised commercial cleaning company and has been recognised as the 20th fastest growing private business by Virgin Fast Track and The Sunday Times.

With over 100 franchisees in operation, Dublcheck remains a wholly owned British company. Founder and chairman Carol Stewart-Gill says: “If you put in the effort and follow the Dublcheck system, huge rewards can be realised.

Franchisees can look forward to a safe and secure future and a great opportunity to create a large business and valuable asset.”

The benefits of Dublcheck are: • Low-cost entry • Invoicing and cash collection • Recession-proof utility business • Low overhead requirement - can operate from home • Dublcheck is the franchise where you don't need to be able to sell, we obtain the business for you • Professional white-collar management franchise or operational franchise • Everywhere you look buildings need cleaning • Over 100 franchisees across the UK • 92 per cent customer retention rate • Hundreds of fantastic franchisee testimonials • A massive market that keeps on growing

What our franchisees say:

Graham Coulston-Herrmann and his wife from Lancashire started our Dublcheck Cleaning Franchise in August 2012. “My wife and I were both police officers. I retired in September 2012 after 30 years In Lancashire Constabulary.

I chose a Dublcheck franchise after seeing them at the Franchise exhibition 6 months earlier. I was drawn to them as they had a strong customer service model.

They also were very friendly and approachable, almost like joining a family.

The initial training was excellent covering the practicalities of running a cleaning company as well as the issues that a startup business has to consider.

Starting out as a Dublcheck franchisee has allowed someone with no business experience to grow a successful business. I aim to double the size of the business over the next two years. In order to achieve this we will continue to do the basics very well and thereby build a very strong and loyal customer base. Supported by a happy and loyal workforce.

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

31/07/2015 10:20

ADVERTISING FEATURE

Q&A

with Carol

Carol Stewart-Gill, founder and owner of Dublcheck, answers all of your burning franchise questions Why do you think franchising works?

I have been franchising for 22 years now and have been told many times that people wished they had done it sooner. I have seen many people flourish both financially and in their work life balance since moving into franchising.

How much do I need to invest in a franchise?

This can vary enormously but my advice is try not to invest a huge amount. Dip your toe in the water, see if you like the industry you have chosen and then you may have the option of reinvesting safe in the knowledge that you will be successful.

What sort of industry should I go into?

It does not necessarily have to be something you are familiar with. A change can be good. I would choose a trusted industry that you believe is recession proof.

Do I need expensive premises to run my franchise?

No. I know of many successful management franchises that operate from home and enjoy low overheads as a result.

I am a business executive tired of working and making money for someone else. Is franchising a good option for me?

Franchising is probably the way forward for you. I know of many executives who have brought their expertise to their franchise and have not only befitted financially but have also enjoyed lots of flexibility to work the hours that they choose.

I have been looking at a franchise but the company has only recently started franchising. I like the service they offer but can’t find any concrete evidence of success. What should I do?

It is as well to join a well-established, successful franchise company whereby you can speak to existing franchisees who can tell you about their experience of working with the franchisor and how their business has evolved.

How much support should I expect when investing in a franchise?

When buying a franchise, the idea is that you are not on your own. Ask other franchisees how supportive the head office staff are because when you start your new venture, it’s very important that you have the support of people with experience, knowledge and an interest in your success.

October 2015 | elitefranchise

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ANALYSIS

Serving up success

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elitefranchise | October 2015

ANALYSIS

MANY OF THE WORLD’S BIGGEST FOOD CHAINS HAVE USED FRANCHISING TO BUILD THEIR BRAND. SO WHY DO FOOD AND FRANCHISING SO OFTEN GO HAND IN HAND?

S

omehow the fates of food and franchising seem inextricably linked – if somebody was asked to name a franchise, the first few names to emerge from their lips would undoubtedly be one of the big names in the food sector.

Franchising has certainly been the making of many a food business, allowing them to become truly global brands. But what is it about franchising that lends itself so well to rapidly building a food empire? We speak to three food franchises at different stages of their journey to find out.

Falling into plaice

WORDS: JOSH RUSSELL

Rolling in the dough If anyone is likely to understand how franchising can help build a global food brand, it’s Subway. Fresh from celebrating its 50th anniversary, the international sub sandwich chain has grown into the world’s largest franchise with well over 44,000 outlets across 110 countries. “Franchising has been a huge success for us,” says Gregory Madigan, area development manager for United Kingdom and Ireland at Subway.

Having first start selling franchises when it only had 16 stores, franchising has played an invaluable part in helping Subway establish such a significant brand presence. “Franchising is an excellent way of growing a large network of stores,” Madigan says.

In his mind, one of the main benefits of franchising is it allows a decentralised approach to growing a brand; rather than being orchestrated from the top down, growth is driven by individuals with immediate oversight of the particulars of their local market. “Franchisees are entrepreneurs; they’re running their own businesses in their own communities,” he says. “That’s quite different to the typical centralised control model, which can often bottleneck development.”

Another benefit of franchising is its ability to create a replicable product or service time and time again. And, perhaps more than in any other sector, consistency is absolutely vital in the food industry. “Customers expect the same product, whether it’s a sub, a cookie or a drink,

in any store around the globe,” says Madigan. Given franchising is based around creating a replicable model, it guarantees consumers will enjoy the same quality of meal, regardless of whether they buy it in Soho or Sao Paulo. “That’s the key to any franchise model: being true to your brand and being consistent,” he adds.

Compared to other industries, it’s also important to recognise that food service is a very strictly regulated sector. “It’s only right that there should be tight controls and regulations in place when you’re dealing with people’s food,” Madigan says. One of the clear benefits for those buying into a food franchise is that, rather than having to wrestle with regulations on their own, they’re buying into a system that has already navigated all the compliance issues that come with working in the sector.

“That’s what the franchise model is so perfect for,” he says. “You don’t have to make it up or create it yourself – and that opens the door to a much wider range of people.”

Customers expect the same product in any store around the globe; that’s the key to any franchise model Gregory Madigan, Subway

When fish-and-chip franchise Harry Ramsden’s was purchased by Boparan Ventures, all of the key ingredients were in place but it just needed someone to turn up the heat. “It was a little bit unloved and lacked the required attention to detail to move forward,” says Joe Teixeira, CEO of Boparan Ventures and Harry Ramsden’s.

Fortunately, the company had a very strong track record in the 1980s and its new owners realised that it was well positioned to capitalise on a UK market that supports 10,000 fish-and-chip outlets. “We looked at the business and could see it had a really strong IP that we could leverage and use to expand quickly,” says Teixeira. “The important thing was to try and take it to the masses.”

In Teixeira’s opinion, this is one of the real benefits of using the franchise model to grow a food enterprise: it can allow for much faster growth in what is quite a capital intensive industry. “If you expand using company-owned stores, there is obviously a required capital cost when trying to grow very fast,” he explains. “With franchising, you can accelerate that process and get the numbers up.”

As the franchisees themselves are committing capital, not only can food franchises grow much faster but they can ensure that the people running outlets are incentivised to make them as successful as possible. “If you’re investing your own cash in it, you’re more likely to run it as efficiently as you can,” he says.

Perhaps one of the most interesting things about Harry Ramsden’s is that it shows just how wide a range of food concepts can embrace the franchising model.

October 2015 | elitefranchise

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Coming to the UK: Germany´s fastest growing and most innovative franchise system!

The Coffee-Bike is a mobile, self-contained coffee shop with a unique and eye-catching design.

• • • • •

Your own coffee shop on only 3m2 Low initial investment No monthly revenue minimum Royalties only on sold coffee specialities Individual training and ongoing support

Work full-time or part-time and choose where you want to operate your Bike.

• • • • •

Flexibility and mobility Private, public and corporate events Sustainability and environmental protection Brand concept and company culture Innovative technology

Join one of our next Franchise Information Days in Birmingham:

Contact us for more details:

Friday, 14th August Friday, 11th September Thursday, 1st October

+44 (0) 203 - 695 89 - 80 franchise@coffee-bike.co.uk www.coffee-bike.com

Untitled-5 1

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ANALYSIS

There is a required capital cost when trying to grow very fast; with franchising, you can accelerate that process Joe Teixeira, Harry Ramsden’s

Its approach is threefold: traditional chippies based in the heart of the community, full-service, sit-down restaurants and, currently being trialled, a hybrid, assisted-service model, which Teixeira compares to a Nando’s-style experience. “With these three formats, we’re in the position to be able to increase our presence and leverage the brand to its maximum,” he says.

Another positive of buying into a food franchise is that success doesn’t always require extensive expertise in food service. “It’s all about personality, passion for the industry and a willingness to learn,” says Teixeira. He refers to some Harry Ramsden’s franchisees in Scotland whose prior experience was running a successful dentistry business with over 38 dentists. They have succeeded despite not having experience in running a food business. “The most important thing is chemistry; finding individuals that are as passionate about the brand as we are,” he says.

Thinking outside the box In franchising terms, Nudo Sushi Box is very much the new kid on the block. Founded in March 2013, it was created as an attempt to bring more nourishing fare to the QSR concept. “We saw a gap in the market for a healthy alternative to fast food that’s more nutritious, fresher and better quality,” says Terence Lee, business development manager at Nudo Sushi Box. The business currently has eight company-owned outlets in the north but Lee expects the franchise model to help it rapidly expand southwards. “We are already expanding relatively quickly,” he says. “And once people actually see this new concept of a sushi franchise working, it could double or maybe triple the current rate of growth.”

But whilst franchising can support quick growth, Lee maintains it’s not for everyone. “You can supply the ideas and ingredients but, in terms of managing it, it all depends on the individual franchisee,” he says. Because every element of a franchise needs to be meticulously documented and easily communicated, food businesses with simpler models more easily lend themselves to franchising. “For restaurants that have proper kitchens and a head chef, franchising would be a lot more complicated,” he says.

One of the real novelties of Nudo Sushi Box’s model is

that it has neatly sidestepped this problem and doesn’t actually require any food prep in-store; the outlets’ sushi is prepared at central kitchens before being delivered to stores. “When you look at it, it’s purely retail: customers can look at things in the fridges, see what they like, bring it to the till and pay for it,” Lee says.

This means that it’s far easier for a franchisee to pick things up and hit the ground running; they don’t have to concern themselves with the ins and outs of food prep and can simply focus on making the outlet operationally successful. “Franchisees don’t have the headache of how to make sushi,” he says. “Even investors could just invest money, have a few sites and employ good supervisors to look after the shop and let it run itself.”

And the benefit of this cuts both ways. The food being centrally managed also allows Nudo Sushi Box to ensure its products are continually produced to a consistent nutritional standard. “It means that we can focus more on production and keeping up the quality,” Lee says.

“That’s very important.”

October 2015 | elitefranchise

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ADVERTISING FEATURE

Looking after people, taking care of your business Heritage Healthcare is a leading family-run homecare business with over 70 years’ experience of delivering expert care

A

strong belief in a successful business model and the ambition of an experienced board of directors has driven Heritage Healthcare into the franchising market. The business was first started in Darlington in 1955 by Heritage Healthcare’s managing director Glenn Pickersgill’s grandma Annie. Today they have twelve offices across the UK and counting.

The homecare sector is one of the UK’s fastest growing markets. This is driven by an ageing population – which is not set to peak until 2035 – and people increasingly wanting to make the most of their retirement and remain within their own homes and communities for as long as possible. As a business opportunity, it is second to none.

Heritage Healthcare has a fantastic reputation for providing outstanding levels of care. Every client is at the heart of creating a bespoke support plan to meet their individual needs. Clients, their families and friends all benefit from the support offered by the dedicated Heritage Healthcare team, whether it be through physical care or the offer of respite. The care sector offers huge rewards: we improve the lives of our client’s every day.

The Heritage Healthcare franchise opportunity allows franchisees to own their own business, developing and expanding with the added benefit of ongoing support.

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Heritage Healthcare offers support from an exceptional team that has a culture of professionalism, experience of care at all levels and a proven commitment to excellence. Director Michelle Fenwick is currently the only Qualified Franchise Professional in care in the UK, providing franchisees with the highest level of expertise and support.

Purchasing a franchise is a life-changing decision and due diligence should be a crucial part of your decision making process. Heritage Healthcare encourages you to find out as much information as possible.

Consult your family: family support is vital so involve them in your research. Whether it’s with us or another company, speak to the directors find out about them, their goals and their experience of their industry.

Finally, attend a discovery day because it offers a fantastic opportunity to find out more about the company and their business model. You can ask questions and meet likeminded people who may ask a question you hadn’t even considered.

The care sector offers huge rewards: we improve the lives of our client’s every day

Heritage Healthcare are holding discovery days across the country – if you would like to attend or find out more about the Heritage Franchise opportunity contact Michelle Fenwick at michelle@heritagehealthcare. co.uk or call 01325 370707

elitefranchise | October 2015

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“I have seen the joy that comes from enabling people to remain within their own homes living a full and satisfying life.

This joy is what drives us to do whatever it takes to make sure our clients get a high quality, reliable, trustworthy service.”

Daniela Coutinho, Franchisee Heritage Healthcare Ealing & Richmond

Looking After People.

Taking Care Of Your Business.

01325 370707 www.heritagehealthcarefranchising.co.uk

A Fantastic Business Opportunity in an Expanding Market.

• Leading provider of expert care at home • Clients are at the heart of our homecare service • Experienced team of directors • Expert support, training and business planning • Established franchise business • Track record of success • High potential, bespoke territories available in your area

“The support I have received has been 1st Class” Anthonia Ugwumba, Franchisee, Heritage Healthcare Barnet

Franchise Fee £24,995 +VAT

Heritage Healthcare Franchising: Heritage House, 10 Houndgate, Darlington DL1 5RF t. 01325 370707, e. michelle@heritagehealthcare.co.uk

www.heritagehealthcarefranchising.co.uk

Heritage Healthcare DPS Oct 15.indd 2

EXPERT SUPPORT, TRAINING AND BUSINESS PLANNING

WHAT WE ARE LOOKING FOR? It is crucial from our perspective to recruit the right type of people to be our franchisees. The following skills and attributes are key to you being the right franchisee for Heritage Healthcare: Attitude: You will be ethical, hardworking, caring and commercial.

People skills: You will hold excellent interpersonal skills. This is a business that revolves around people. The people we look after, the people who work for us and the people who do everything in between!

Management experience: You will have experience of managing people, plus a desire and aptitude for running a high quality Homecare business.

Marketing: You will understand the importance of marketing and use a variety of marketing activities to develop your business.

For the right people we can offer all of the training, support and business systems required by our franchisees to develop a successful business in the Homecare sector.

07/10/2015 17:39

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

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

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

Unique software package

Driver Hire is

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

• Franchisees from a wide range of backgrounds • No previous knowledge or experience required, but...

• A passion for excellent customer service and the commitment and desire to build a successful, profitable franchised business • 93% of franchisees would buy a Driver Hire franchise again!

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

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

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01274 361073

franchise@driverhire.co.uk

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

30/07/2015 15:35

INTERNATIONAL

Little Kickers is a shining example of a British franchise that’s enjoyed success overseas. The children’s football coaching franchise is now operating in 16 countries – and counting

WORDS: ADAM PESCOD

P

rior to founding Little Kickers, the children’s football coaching franchise, Christine Stanschus had a high-flying career in the City, latterly working as European head of collateral marketing for J. P. Morgan. Suffice to say, the nature of the role meant that family life took a backseat, something that eventually compelled Stanschus to step away from the corporate world. “I ended up being away more than I was at home so I decided I needed to find something else,” she says.

It also meant she could spend some quality time with her young son Lukas, who was football mad. “He just loved football,” Stanschus says. “Every day, I would drive him down to Wandsworth Common and I’d have to stand in goal while he’d kick balls at me.”

But, as much as she enjoyed her kickabouts with Lukas, Stanschus thought he would benefit from some proper football coaching. “It was really unusual for my generation of women to play football,” she says. “I just thought there must be other people who are better qualified to teach him football than me.”

A chance encounter at the park solved the problem. “I bumped into a guy who was there playing football with his son,” says Stanschus. “I had a chat with him about whether he would be interested in running some classes for Lukas and some of his friends.” He agreed and, when parents started flocking to the class with their children, Stanschus realised that there might be an opportunity to take the idea one step further.

Along with two friends (who she has since bought out) Stanschus was soon running a number of classes across London, which were targeted at children aged from 18

October 2015 | elitefranchise

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06/10/2015 12:05

BE YOUR OWN BOSS We provide all you need to own your own commercial cleaning business!

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

Training - Guaranteed Customers - Financing - On-going Support The Processes Are Ours. The Benefits Are Yours.

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

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

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

Jan-Pro FP Apr15.indd 1

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INTERNATIONAL

The franchise network grew very quickly and Little Kickers soon started to generate interest from overseas. However, Stanschus was careful not to expand her horizons beyond the UK too early. “Whilst it was very tempting to grow the business into new markets at an early stage, we felt it was really important to develop a solid base in the UK before we expanded overseas,” she says. “Once we felt confident that we had solid foundations in place, we started to sell master franchises outside the UK.” In some respects, the global appeal of Little Kickers shouldn’t come as too much of a surprise. The beautiful game enjoys a reach that extends far beyond any other sport. “The popularity of football as a sport is growing dramatically in a large number of markets around the world,” says Stanschus. “China tops the table with over 26 million active participants [and] countries like Indonesia, Bangladesh and South Africa have higher levels of participation than the UK.”

We felt it was really important to develop a solid base in the UK before we expanded overseas

months up to seven years. As she explains, parents were less attracted by the prospect of turning their toddler into the next Lionel Messi and more by the opportunity of some meaningful exercise. “The main objective was to give kids a passionate introduction to sport,” says Stanschus.

And, while Little Kicker’s first trainer may have had a bit of football nous about him, this isn’t an essential trait for every Little Kickers coach. “We look for people who relate well to kids, love spending time with them and enjoy physical activity,” says Stanschus. “We’ve developed a comprehensive training programme that can bring even the most inexperienced footballer to a level where they’re able to deliver our programme very competently.”

Nor is football experience a necessity for Little Kickers’ franchisees. Stanschus explains that she looks for people who are passionate, driven to succeed and self-motivated, adding that franchisees are provided with all the necessary tools to set up and run a successful business.

It was in early 2004 that Little Kickers sold its first franchise. At that point, Stanschus was running 35 classes a week across London and demand dictated it was time to take the concept nationwide.

“By franchising the business, we’ve established a network of business owners who have a real passion for what they do and who are very driven to make the business succeed,” she says. “It also enabled us to expand our unique programme quickly across a large market, which minimised the emergence of serious competition.”

October 2015 | elitefranchise

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06/10/2015 12:05

ers renewable energy solutions for both domestic and commercial use. Be a part of the fastest growing subsector industry in the world with Green Square.

• Exclusive product range •

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Call: 0845

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Email: franchise@greensquare.co.uk Web: greensquare.co.uk/renewablefranchise

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The home of energy solutions

31/03/2015 22:56

INTERNATIONAL

Little Kickers now has a presence in China but Stanschus says targeting the country as its first international outpost would have been unwise.

“There is a whole host of countries like China where football is massive but where the business infrastructure and franchising model isn’t really particularly well known – or where the laws around franchising are less than robust,” she explains.

Instead, Little Kickers set its sights on English-speaking countries first, starting with South Africa. This served as a good test of its applicability in other countries, while giving it the necessary confidence that it could succeed in more exotic climes. “It enabled us to dip our toe into the water in countries where we could keep the website, the business system and everything else in the same language,” says Stanschus. “[And] it also enabled us to progressively evolve what we did so that it would work in other countries.”

Suffice to say, finding the right person to come on board as a master franchisee is crucial to the success of any Little Kickers outlet overseas. “In addition to having the drive and enthusiasm to set up the programme in a new

Our master contracts last for ten years so it’s important that the people we select are a good fit

country, it’s also very important that they want to take on the franchise for the right reasons, and understand and identify with our ethos,” says Stanschus. “Our master contracts last for ten years so it’s important that the people we select are a good fit.”

While selling master franchises might mean ceding a little bit of control, placing each master franchisee on a six-month pilot scheme helps gives Stanschus the peace of mind that the person in question is capable of making things work in their respective territory. “Once we have worked with our master franchises to ensure the franchise is viable and replicable in their country, they can start to sell franchises on to third parties,” she says. “We recognise that we must work with our master franchisees to tweak our existing model based on their recommendations, as they have a much better understanding of their local market and its requirements than we do.”

With 193 franchisees running 239 franchise territories worldwide, Little Kickers has certainly come a long way from its Wandsworth Common roots. It’s also led to some big changes in Stanschus’s life: she moved to Toronto six and a half years ago with her two children and husband Frank, who took on the master franchise for Canada. The couple saw it as the ideal place for their children to grow up but the move was also motivated by business. “We’re in a different time zone to the UK and this enables us to extend the window of support we are able to offer to our franchisees, which has become increasingly important as the business has expanded into new markets,” she says. “It also gives the business a more international feel; we’re an international company expanding into new markets rather than a UK company expanding overseas.”

Portugal is the next port of call for Little Kickers’ international adventure and Stanschus also feels there are significant opportunities for the franchise across the rest of Europe, the Middle East and India.

With football’s global popularity only going in one direction, it’s little wonder Stanschus has high hopes for the future. “In many of the countries where Little Kickers operates, football is the most played sport and this trend seems to be escalating,” she says. “As such, we expect international interest in our franchise programme to continue to flourish.”

October 2015 | elitefranchise

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06/10/2015 12:06

The Interface Financial Group

An ‘in-demand’ Financial Service

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20/05/2015 14:16

FINANCE

Mastering

money

If you’re going to avoid any nasty surprises, it’s important to thoroughly check out all of the financials before you buy a master franchise, says Brian Duckett, chairman of The Franchising Centre

L

ike it or not, when thinking about master franchising, you need to think about the numbers. It will only work if the franchisor, the master franchisee and the unit franchisees are operating sustainable businesses. That’s why any franchising plan starts with the figures.

Both sides should be committed to building a sound business over many years. This will involve working together with a commonsense approach to financing, training and support. The franchisor must be able to present the plans for its international development programme, supported by a detailed business plan. The potential master franchisee must then prepare their own business plan for the country.

Something you should specifically look for is what basic market research has been done by the franchisor on its product or service in the target country. If they haven’t done any, you should ask them why they think a franchised network can succeed there. And, even if they have done some research, the candidate will need to verify it when preparing their plan.

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FINANCE

If the potential master is new to franchising, they will also need to build in some franchising research. For example, how does the franchising market for potential franchisees differ in their country to the franchisor’s home country? Is the proposed fee structure and rate of franchisee roll-out realistic? What about the costs of franchisee recruitment or local laws and cultural differences that may affect the operation?

The unit franchisee Before worrying about the financials of the whole network, a master franchisee first needs to work out whether an individual franchisee can make a profit.

Clearly there are some questions it needs answered.

How much will the franchisee need to invest initially – not just in the upfront franchise and training fees but in the acquisition of things like equipment, premises, vehicles and staff? Once they are set-up and opened, how quickly will sales start to come in and what will the associated expenses be? What ongoing fees will be payable to the master franchisee? When will the franchisee start making a profit and when will their cashflow eventually be positive? Will the business provide enough to repay loans, pay the franchisee an acceptable salary, generate a sufficient return on their investment

and still leave money over to invest in the development of their business?

Most of the data will come from actual results achieved in the existing business in the franchisor’s home country but there will be many potential differences in the new market. These will include key ratios such as property costs, wage rates and fuel costs.

It may even be impractical, for whatever reason, to charge the same level of upfront fees and ongoing management services fees as the franchisor charges in their home country, which will have an impact on both the unit and master franchisee’s calculations.

To complete the financial forecasts for a franchised outlet, the preliminary decisions are fed into the model – often using the proprietary software of the chosen advisor – and the outcome is assessed. Based on all current, accurate information and best-informed guesswork, does it look like an attractive option for a candidate who fits the desired franchisee profile?

All bets are off if the proposed structure won’t work for the individual franchisee because, if that’s the case, it won’t ever work for the master.

Any franchising plan starts with the numbers

The master franchisee What the master franchisee needs to know is whether there will ever be enough franchisees to cover the costs of setting up the franchising business in the first place and the support infrastructure that will be needed to support it. Unless they have done it before, they will definitely need help here because there are often many hidden – or just naively overlooked – costs that go with establishing a franchised network.

Over and above whatever country exclusivity fee has already been paid to the franchisor, these costs include territory analysis and demographic profiling; establishing and running pilot operations; preparation of the legal agreement; adaptation and perhaps even translation of the operations manual; adaptation of October 2015 | elitefranchise

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FINANCE

franchise marketing materials; franchisee marketing and recruitment; employment and training of experienced franchise support staff; and membership of the national franchise association. Obviously, this means considerable amounts of working capital are likely to be required.

In the first year of franchising, there will be few franchisees – probably five at best.

They won’t all start in the first month and they will all be startup businesses. Their sales won’t be as high as they will when they’re mature, so the master’s total income from percentage management fees will not be very high. However, the master will need to provide all the necessary recruitment and support services to those early franchisees.

If early franchisees are not supported and do not succeed, it will be hard to recruit others. If the master falls behind with their recruitment schedule, they may run out of money or lose exclusivity in the market.

Their business will fail and so will those of the early franchisees.

On top of that, the master will need to recruit more franchisees next year so more must be spent on marketing and recruitment activity this year. That means even more money going out than there is coming in. All the amounts vary from business to business, which is why an experienced practitioner should be engaged to help with the plan. But it is not unusual for a franchising project to have a total funding requirement of £150,000 before it

The master franchisee needs to know whether there will ever be enough franchisees to cover costs starts to make money.

It doesn’t matter what the overall funding requirement is, provided its level is known and funding is in place to cover it.

What does matter is not knowing what the requirement is, then running out of money and leaving early franchisees exposed. The major clearing banks, certainly in the UK, are very supportive of franchising projects and they have their own specialist franchise divisions to advise their business managers on lending to both master and unit franchisees.

The relevance of all of the above is that it provides evidence and arguments when negotiating fees and development schedules

with the franchisor. The franchisor may start by saying that they want a certain amount upfront, followed by another lump sum every time a unit opens and then a percentage of all ongoing management services fees received by the master franchisee. They will also say they want a certain number of outlets opened in a defined period of time.

If the master franchisee’s plan proves these figures to be unattainable then, at best, it will need to push for an adjustment of those figures to ones that will provide acceptable returns for all parties. At worst, it will result in no deal being done but will ensure the potential master franchisee saves themselves hundreds of thousands of pounds and endless heartache.

October 2015 | elitefranchise

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ADVERTISING FEATURE

FranchiseSales.com: How easy has it been to become a property franchisee?

Aarti Davé: Platinum Property Partners has a model and structure that it follows and because of that it’s been far easier for us than doing it on our own. It’s also been much quicker to get a property up and running.

Being on your own can allow you to make a lot of expensive mistakes in property, so joining the franchise and having that level of support has really helped us.

Dipak Davé: It’s been challenging, it’s been a massive learning curve but it’s been thoroughly fun. As with any challenge, there have been some very low points and there have been some very high points. But it has been an amazing experience.

FS: What sort of challenges have you faced?

AD: The lows points: it was such a huge 50

learning curve but it helped that Platinum are so supportive – they’re always there to help.

DD: There are a lot of low points, there are a lot of times you just sit there and question if you’ve done the right thing, you question the investment you have put into it: both in terms of time and money. You do go through that but you get over it. It’s like jumping out of a plane: once you’ve done it, you’ve done it. You just have to make sure you land.

FS: What are the advantages of a property franchise?

AD: Working from home. What I find about Platinum Property Partners is that we have a support network; there’s somebody there you can work with, we have workshops all the time and we meet regularly. There’s so much contact with the head office and other franchisees. And that helps: you’re working

on your own but you’ve also got a much larger team out there, so you can strike a balance.

DD: It’s a very good model for being your own boss but still having that network of people like you do in any other organisation – you have colleagues, essentially, but you are still your own boss.

FS: What are your future plans for the business?

DD: When we started out, we said we always wanted to get to a target of five properties.

We’re not very fast at things as we like to think things through and do them properly, so we said we should take on one per year, learn as we go along and get the model right.

That said, if the perfect opportunity comes up, I can see that timeline shrinking. But, ultimately, we want to get to a point where we have a significant second income coming in.

elitefranchise | October 2015

Franchise Sales Oct 15.indd 1

07/10/2015 17:38

Buy a property franchise with Why buy a property franchise?

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07/10/2015 17:19

IN SALES & MARKETING

OR 52

elitefranchise | October 2015

IN For Franchise Brands, the multi-

WORDS: JOSH RUSSELL

Whether it’s looking to sell its wares or trying to attract new franchisees, marketing is absolutely essential for any franchise looking to grow. But before getting its brand on Twitter or drafting listings, there’s a fundamental decision a franchise has to make: whether it should it hand its marketing over to an agency or go down the DIY route. We speak to three experienced franchising hands about the merits of each approach

brand franchisor that owns franchises such as ChipsAway and Ovenclean, deciding to manage its marketing in-house was a no-brainer. “We play to our strengths,” says Lidia Benvie-Ferreiros, the company’s group marketing manager. Franchise Brands has built a team to deal with a broad range of eventualities, building up talent in a range of disciplines including digital, creative, editorial and social media.

“Marketing resources at Franchise Brands have grown organically as the company has,” she continues.

Franchise Brands has found that managing its own marketing efforts helps

SALES & MARKETING

OUT?

provide a more coordinated marketing effort at multiple levels. “We implement an integrated approach to marketing, using a multi-channel strategy to give our brands a louder voice,” says Benvie-Ferreiros.

“Having control in-house means that we are able to better coordinate the integration of campaigns.” Benvie-Ferreiros also believes handling Franchise Brands’ marketing inhouse allows it to be much more flexible and reactive with its campaigns. “If a topical news story comes into the headlines, we can easily create our own commentary and thereby increase engagement with our customers,” she says.

Whilst it can be intimidating for a new

franchise brand first trying to ramp up its marketing efforts when it doesn’t have the resources of an agency, BenvieFerreiros maintains that great marketing is achievable in-house. “Just because an in-house team may not have the reach of an agency doesn’t mean to say it’s out of reach,” she says. As long as franchises are trying out new things and tracking the efficacy of their efforts, then they should be able to obtain good results. “I’m a strong believer that marketing is a science,” she adds.

“It’s really important to keep innovating and to try out new things in order to keep campaigns fresh.”

But Benvie-Ferreiros is eager to emphasise

that the decision to handle marketing in-house or outsource it to an agency really isn’t a case of either / or. “When looking at a marketing function in any business, you shouldn’t view it in black and white but look at each campaign [and] its individual merits,” she says.

Franchise Brands has found that help from specialist external teams in areas like TV campaigns and search engine marketing has achieved excellent results, with a recent example being Ovenclean’s first ever TV ad. “Looking at how activity can be complemented through both inhouse and agency helps you create really successful campaigns,” she concludes.

October 2015 | elitefranchise

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Do you long to be your own boss?

Make more money? Have more free time? Secure your future?

We will help you build and run a profitable business, using a proven model in the still new and growing industry of outsourcing. A franchise where you employ others to do valuable work for both large and small businesses.

You will grow as your client portfolio expands, leaving you free to pursue your goals and dreams.

Benefits:

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

So .... What are you waiting for?

Call 01279 276200 and ask for Alan or Kaye email alan.hopgood@zebpa.co.uk Zeb PA June15 FP.indd 1

www.zebpafranchise.co.uk 30/07/2015 16:09

SALES & MARKETING

Anyone who has built a business from scratch certainly knows how to talk about their brand with third parties. “Somebody who’s been quite entrepreneurial and started up a franchise by themselves has clearly got skills in business,” says Andy McCarroll, head of marketing at Platinum Wave, the franchise consultancy.

But there is a distinct difference between the portfolio of skills possessed by an entrepreneur and those required to manage a complex marketing function. “You really need to be aware of all the different skills that go into producing a marketing strategy,” he says.

One of the clear benefits of working with an agency or consultancy is that a franchise can gain access to a

ActionCOACH, the business coaching franchise, learned early on that simply leaving new franchisees to their own devices when dealing with marketing often did more harm than good. “In the early years in the UK, we had more franchise failures than we would have liked,” says Ian Christelow, the franchise’s co-founder. Part of the reason for this was because franchisees were struggling to market their business sufficiently by themselves. “That sat very uncomfortably with my cofounder Julie Wagstaff and I because we care passionately about our franchise partners’ success,” he says.

Rather than simply shipping out all of its marketing efforts to a third party, ActionCOACH came up with a novel approach: it built its own client generation centre. “The marketers are already recruited, they’re already trained and they’re managed full-time,” Christelow says.

“Day in, day out, they’re generating leads for our coaches and that’s fantastic.” This has a huge benefit for franchisees; whilst they’re dealing with all of the demands of getting their new business off the ground,

broad range of expertise that they might otherwise struggle to lay their hands on. “When it comes to creative thinking, design and copywriting, it’s highly unlikely that they’re going to have the necessary skill set,” McCarroll says.

By contrast, an external party is more likely to have talent trained in the myriad disciplines required to get a franchised brand out there.

“We’ve got design, we’ve got PR guys, we’ve got digital marketing experts, copywriters and access to photographers,” he adds.

Obviously, if one has a mind to, it is possible to hire highly skilled marketing expertise in-house but it’s important to remember that nothing comes for free. “The better the marketing manager, the higher the salary,” McCarroll says. He posits that it could cost a franchise some £60,000 or £70,000 to employ an experienced marketing manager.

they can rest easy that they have support in getting new business in. “From day one our franchise partners have an effective marketing strategy that they can just plug straight into,” he continues.

However, in areas that require particular expertise, ActionCOACH doesn’t shy away from seeking external help. “We’ve teamed up with a social media marketing company based in Nottingham,” says Christelow. “They really understand our market.” By providing up-to-date info on the latest developments in the social space, using an external agency helps to feed the pipeline for ActionCOACH franchisees and ensure they can easily access new business. “They do a brilliant job with our social media and help our coaches fill their events,” he explains.

But despite all of the external support ActionCOACH provides, it still encourages franchisees to pick up marketing skills and expertise, allowing them to increasingly be in charge of their own destinies. “We

Conversely, outsourcing can offer franchises more granular pricing; scaling with their needs. “They might pay a fairly low monthly retainer and then if they need a whole lot of extra work done, they can just ramp stuff up as and when they need it,” he says.

McCarroll believes another benefit to outsourcing is the fact that an external agency is unlikely to have any preconceived notions about the marketing tactics individual franchisees should be adopting. “There’s no one-sizefits-all approach,” he says. “That’s a complete waste of time for local marketing.” Instead of forcing a top-down approach to marketing on franchisees, this allows Platinum Wave to address the pain points each one is facing. “We never go in with a set idea of what they’re doing wrong,” McCarroll says. “We actually go have a look around and really try to understand what they’re up against.”

encourage them to do a bit of their own marketing; it’s a key part of business,” says Christelow. To this end, it runs four days of masterclass training in marketing, selling and coaching every two months, whilst emphasising to franchisees the importance of gradually building up their own in-house teams to help support them in these efforts.

“We also suggest that our franchise partners hire a part-time marketer locally; maybe a marketing apprentice through the government apprenticeship scheme,” he says.

October 2015 | elitefranchise

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PEOPLE

Why franchising works for women The flexibility and support offered by franchising makes it the perfect fit for women, says Nigel Toplis, managing director of the Bardon Group

O

ver a third of all of the franchisees currently running their own businesses within the Bardon Group’s quartet of brands are women. And, if you take into account the many females working alongside their partners within Recognition Express, ComputerXplorers, KallKwik and the ZipYard, that number is far higher.

Franchising is an attractive proposition to women because of the business support available and the flexibility it provides to better balance work with family life. Buying a franchise means you can enjoy all the benefits of being your own boss, safe in the knowledge that you are buying into a proven business model that will back you all the way.

56

Women join the Bardon Group at every stage of their working life, from leaving full-time education to following redundancy or early retirement.

Sorcha Thomson from KallKwik Romford first started working in her parents’ franchise as a Saturday girl when she was just 16. After she finished college, she entered the business full-time and 25 years on she’s now running the printing and digital output company.

“This business has always been part of our family life,” says Thomson. “I grew up in it and as soon as I was old enough I wanted to get involved.

Since I have been at the helm we have had a new energised focus. We’ve seen fantastic growth and for me the high point is seeing it progress.

elitefranchise | October 2015

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ADVERTISING FEATURE

Profit from print with Cartridge World

I

n the commercial world the office printer says Cartridge World’s general is universal. From sole proprietors manager Gavin Askew. through to multimillion-pound turnover “Cartridge World Print plcs, modern businesses couldn’t function Services capitalises on this. without them. It’s a massive market worth It’s a simple, cost-effective £90bn annually and a highly lucrative way of running their business business-to-business (B2B) opportunity. printing, with savings That’s why leading franchisor of up to 30%.”

It’s a Cartridge World developed Cartridge Selling its businessmassive to-business World Print Services, a flexible print service is market management service for its franchisees straightforward. Cartridge to sell to thousands of small and World franchisees use a series worth medium-sized businesses. For a fixed of standard pro-forma and £90bn monthly fee, Cartridge World manages to provide their annually calculators their printers, provides an automated customers with the required supply of printer cartridges, paper and figures showing how much ongoing maintenance. Most importantly, it they will save. delivers tangible customer cost savings.

“Our franchisees benefit from in-depth “Research shows 90% of businesses have support at every level of their business,” says no idea how much they spend on print,” Askew. “They also have access to our industry

partners, giving them the opportunity to offer print hardware/software solutions, full service and repair contracts and finance, if required. Once agreed, a Cartridge World Print Services contract delivers annuity revenue generally worth about £3,000 over three to five years – a sound customer base upon which ambitious sales driven people can build a profitable long-term business.”

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“Even though I know the business backwards it’s reassuring to know that the head-office team is there to offer support and advice when I need it. The flexibility owning my own business provides is also very important to me. Little things like being able to pop home at lunch time to let my dogs out make the world of difference.”

Work-life balance is certainly an important aspect of family life. Jude Parker co-owns ComputerXplorers North Yorkshire with her husband Andy. Before buying the franchise she was head of marketing at a company turning over almost £100m. As they both reached 50 it was time to look at what they wanted out of life.

“I wanted something that had structure but that would also let me be entrepreneurial,” explains Parker. “Most importantly, the business needed to offer added value and real job satisfaction.

We wanted to do something that gave something back to the local community.

Before opening his first ZipYard outlet, McConnell’s husband Richard was a driving instructor. “I hardly ever saw him because of the long hours,” says McConnell.

That’s all changed since the couple have taken on their franchise. “Owning our own franchise has given me the flexibility to manage my working life along with raising a family,” she adds. “Now the business is more established we both have the luxury of taking more time off to spend with the family, whilst at the same time building up a profitable business.”

For Jan Chidley at Recognition Express Hull and East Riding, the decision to set up her own business came when her three children had reached senior school age. It was time for her to build a career in her own right so at the age of 40 – and after a lot of research – she bought the promotional goods and clothing franchise.

“It was both scary and exciting at the same time,” says Chidley. “I wanted to keep work and home life separate so chose

Franchising undoubtedly ticks all the boxes for working women

to rent office premises that were halfway between home and school. I had never been in a working environment before. I bought myself a whole new work wardrobe and when it came to office skills I was like a dinosaur. I wasn’t computer literate and couldn’t even send an email. The children showed me the basics – and from there I taught myself.”

Eight years on, her children have now all left home and, as an ‘empty nester’, Chidley has entered a new phase in her working life. “With our youngest daughter now on a foundation year before going to a top London drama school I have been able to take the business up a level,” she says.

“Whilst year-on-year I have exceeded all my own goals as well as the targets set by my franchisor, having more time to spend in the business has helped me deliver significant results.”

Franchising undoubtedly ticks all the boxes for working women. With so many options to choose from and a franchise to suit every lifestyle, it provides a real opportunity to build a solid business underpinned by ongoing support.

We’d also spent years working in commercial jobs that left little time for anything else so we wanted a better worklife balance as well as financial gain.”

Biology dictates that it is women who have children. Whether or not a mother decides to work after having babies is very much a personal decision but franchising provides the opportunity for people to combine looking after a family with running a business. Marie McConnell co-owns the ZipYard alteration and tailoring centres in Altrincham and Wilmslow with her husband Richard. She has a four-year-old daughter so owning a franchise offers her a good level of flexibility and at the same time allows her to put her passion for fashion to good use.

“Franchising has been great for me,” says McConnell. “I have taken something that I am interested in and used a proven model with ongoing support to establish a highly successful business in the local area.”

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s coaching t r o p s g in w o ies. est gr The UK’s fast hools and local communit sc provider for

rn on Proven restu ent tm e your inv

Reasons to become a PTC Franchisee

y compan We are a bition full of am sion and pas

Let’s get the children of Britai n active again!

Top class ambassadors to support yo ur franchise

Great job satisfaction

To start your journey call us on

01709 913600 www.ptcsports.co.uk/franchise or e-mail info@ptcsports.co.uk

PTCGroupUK

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Cent Building, Sheffield Road, Rotherham,S. Yorks, S60 1DX PTC Sports is part of the PTC Group

Untitled-24 1

Endorsed by Muzzy Izzet, Steve Walsh, Steve Claridge and Paul Nixon

31/07/2015 18:43

PEOPLE

Young

Franchises ignore the millennial generation at their peril, warns Annabel Jones, HR director at ADP UK

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guns T

he millennial generation, known to some as Gen Y, has been centre stage over recent years. And marketers, recruiters and employers are struggling to understand this new and powerful demographic group.

Roughly defined as those born between the years 1980 and 2000, millennials make up a large and diverse collection of around 17 million people across the UK, some of whom are well into their working lives and others who are yet to start their careers. But that diversity hasn’t stopped market researchers and pop psychologists categorising and generalising millennials, attributing them various characteristics based on their year of birth.

Described as selfish, entitled, narcissistic and lazy – to name but a few – you would be forgiven for wanting to give this generation a wide berth. But, with other studies arguing that young people today are in fact fairly similar to how they have always been, it is just the rest of us that are getting older. So it’s fair to say that many of these sweeping generalisations should be taken with a pinch of salt.

Either way, it is undeniable that millennials are the future, with research showing they make up almost a quarter of the workforce. This is no less the case in the franchise industry, which has grown by 20% in the last five years. To ensure this growth is sustainable and is accompanied by continued innovation, successfully engaging and attracting millennials is essential.

Attracting more millennials to join a franchise makes good business sense Without a doubt, recruitment is the single biggest challenge facing franchisors, with research from the British Franchise Association (bfa) showing it takes on average 250 leads and 25 interviews to sign up each new franchisee.

This is partly because recruiting for franchisees is a complicated business, with franchise owners looking for the right skillset, an understanding of the business and commitment, not to mention the right personality fit with the franchise owners. Identifying new recruits can

be time-consuming and expensive, so getting it right is crucial. New franchisees will be the face and guardians of the brand so franchisors must be confident that they can be trusted for the long-term.

In a bid to simplify the process, it can be easy for franchisors to recruit in their own image or based on an idea of what makes a successful franchisee. This, however, could mean younger candidates are overlooked.

Rather than safeguarding the future of the franchise, this approach could be endangering it through stifling the new ideas, innovation and energy that comes with recruiting younger people into the business.

The figures back up this trend: in 2013, only 7% of franchisees were under the age of 30, down from 10% in 2005. Meanwhile, the largest group is still the over-50 bracket, with over a third of franchisees falling within this age group.

So what can millennials bring to the franchise industry?

While there are some negative claims about the work ethic and attitude of millennial employees, a number of studies highlight various positive traits prevalent among members of the younger generation, making them the perfect candidates for franchising.

Entrepreneurial Research of millennials has shown that they are more likely to dream of being their own boss than climbing the corporate ladder. Joining or starting a franchise business is a perfect way for them to do this.

Tech-savvy The majority of millennials have grown up with technology, making it second nature for them to use the latest gadgets, apps and systems to help grow their franchise. They may well think of solutions that older franchisees miss or simply don’t know about.

Values-driven First and foremost, millennials are driven by their principles, with more than 50% saying they would take a pay cut to find work that matches their values. This could be a valuable attribute for franchisors if they can engage millennials in the wider mission and purpose of their business.

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Innovative Millennials have a positive attitude towards innovation, viewing it as a science that can be learned and that is repeatable rather than random and spontaneous. This bodes well for those franchisors looking to build and develop their business in the future.

Hungry to learn Millennials truly value continuous learning opportunities, meaning they will be receptive to expanding their knowledge of the business. Training and development is crucial when getting franchisees up and running so with millennials the information shouldn’t fall on deaf ears.

Loyalty Despite millennials being painted as disloyal job-hoppers, research has shown this could be exaggerated, with eight in ten millennial employees thinking they will work for just four employers throughout their careers.

Clearly, attracting more millennials to join a franchise makes good business sense.

So how can you tailor your recruitment process to reach this age group?

Build your presence online Unsurprisingly, millennials are prolific on the web; it’s their first port of call for job hunting, shopping, networking and everything in between. Ensuring you have a comprehensive web presence is essential.

When looking for jobs, reports show that almost half of millennials say a prospective employer’s online reputation matters as much as the job it offers and it will be no different for those millennials researching

Millennials may think of solutions that older franchisees miss or simply don’t know about 62

and considering potential franchises. By ensuring your website is easy to use and optimised for search engines – and that your social media profiles are updated regularly – you will be able to maximise opportunities to attract the best talent. You could also consider starting a blog to give a face and personality to your company, using the platform to discuss company news and industry issues.

Use digital techniques to attract candidates Beyond merely building an online presence, franchises can promote becoming a franchisee through techniques such as digital and social media advertising or having an open dialogue with millennial online influencers. An increasing number of businesses are also introducing interactive recruitment mechanisms such as video pitching or online interview platforms to make the process more engaging and increase interest among a new audience.

Communicate values Given that millennials are considered to be more influenced by their values than generations before them, franchisees should ensure they effectively communicate their vision, ethics and principles.

Millennials will be looking to see the positive impact the company has on the world and how it plays a responsible role in society. This might include any corporate

social responsibility (CSR) programmes the company runs or whether it offers opportunities for charity work.

Training and career opportunities Millennials are keen to know what training and development opportunities will be available if they join your franchise or become a franchisee so it is essential to demonstrate how you help new recruits to build their skills and capabilities. This does not always need to be through formal training programmes; there are a number of alternative methods such as mentoring or on-the-job training. Publicising these benefits will show millennials that the joining the industry will provide real career potential.

So whether you’re a franchisor looking to inject some enthusiasm into your network or a franchisee hoping to energise your workforce, millennials could be the answer.

They will help ensure the brand is keeping up with the demands of millennial customers, while also providing new ideas on running the business successfully for years to come.

Ultimately, diversity is key and employees of all age groups and backgrounds will have something different to offer. By spreading the net as widely as possible and considering the needs of all potential franchisees and employees, organisations will ensure they have access to the best people to drive their business forward.

elitefranchise | October 2015

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A Popkidz franchise has the potential to produce a very attractive level of personal income and financial return on investment.

We have developed detailed financial models that we will share with you on moving forward with your franchise, which demonstrate that the Popkidz franchise system has the potential to provide a franchisee with a excellent income and a relaxed life style.

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TECHNOLOGY

connected to interrupt. This is why TaxAssist launched a bespoke online resource that contains useful information and tools for the company’s franchisees and can be accessed at any time. “We have a custombuilt intranet, which has been in place for the last ten years and is developed and maintained by an in-house web developer,” he says. “We feel our support content and facilities should be there when the accountants need it. If we interrupt their working day then it’s time lost helping clients. They only have their time to sell.”

But creating such a site has not been easy. As Sandall points out, the company employs an in-house developer to run and maintain it. Furthermore, it recently had to recode it from scratch following ten years of heavy use, in part because the company needed it to be ready for its international expansion. “The end user didn’t really notice but we needed to knock it all down and start again in order to keep building more facilities for the network to use,” he says. “We also needed to make core changes to allow master franchisees to have their own support sites in their respective countries. The near future will involve communicating with our counterparts in Australia and Canada. It’s been a massive investment in time but well worth it.”

But some communications and messages require a

As a franchise grows, those at the top must work harder to ensure they keep talking to everyone in their network. Fortunately, there are a number of tools to help franchises stay on top of their internal comms

WORDS: Jon Card

C

ommunication in a small business is relatively straightforward. When the entire company is in the same building, company meetings are easy to organise and ensuring everyone is on the same page doesn’t take too long. But as companies grow – and particularly as new sites and outlets are added – internal communications have further to travel. Given franchising entails the operation of multiple sites, this becomes a key challenge as a franchise network starts to grow.

Franchisors need to maintain contact with their franchisees at all times and support them with their day-to-day issues. One way to do this is to create online resources and 64

make them available via cloud-based programmes such as Dropbox, Boxnet and Google Docs. This enables large amounts of information to be constantly available. It should also take the strain off the company’s email system and helpdesk lines.

But such an approach needs to be carefully planned and overseen.

Bespoke Karl Sandall is the group chief executive of TaxAssist Accountants, a franchised network of 250 offices that services the needs of small business owners across the UK. Sandall says his franchisees want to focus on the needs of customers during the day; understandably, this is something he doesn’t want

elitefranchise | October 2015

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d an list r b fa fina b r 4 – yea 1 20 the of

l u f s s e c c u s t The mos n o i t a r e t l a t n garme UK e h t n i e s i h franc Who? • Are you ambitious to run your own business?

• Customer driven and well organised?

• Can you follow a proven business system?

How? All Zip Yard franchises are finished to a distinctive specification and you are presented with a fully operational and fully supported business with trained staff and comprehensive brand marketing from day one.

Support Includes: • • • • •

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

Total Cost: £38,500 + VAT plus shop fit* One-off licence fee Franchise package: - Corporate branding - Production equipment - Marketing and PR launch programme - Opening stock - Bespoke electronic point of sale system, software and computer - Extensive marketing collateral Training and project management Ongoing business support Fully fitted retail unit

“After meeting the franchisor, Nigel Toplis, we were very impressed by the professionalism of the franchise. Since opening the reaction from customers has been amazing and business is going so well that we are looking to open a second Centre, and possibly a third after that.”

Richard McConnell, The ZipYard Altrincham

For further information call Emma Downes on 01530 513307 e: edownes@thezipyard.co.uk w: www.thezipyard.co.uk * The exact shop fit cost will be determined by the size and standard of the premises

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TECHNOLOGY

more direct approach. To achieve this, the company sends out a weekly global email.

This is always approved at director level and the company tracks open rates to ensure it has been seen by all. “An important communication needs to be repeated to ensure the message has been received,” says Sandall. “Our support site provides us with effective tracking so we can contact an office if that weekly email hasn’t been read.”

Traditional methods Online resources can be very useful but Sandall says communications need to take place across a variety of channels, including more traditional routes. “Internal, transparent and honest communication with our franchisees is vital,’ he says. “We ensure this happens in many different ways but the most important way is always face to face.”

Other franchise owners tend to agree.

Craig Brown is the managing director of Signs Express, a signs and graphics company that runs over 65 centres in the UK and Ireland. He says that businesses need to be careful not to overdo their online communications, particularly email, and insists that traditional methods are still essential nowadays.

“Over the years, we have learnt that too much information going out too quickly can sometimes be lost in the masses of

TAILOR THE MESSAGE Once it’s sent, it’s seen, so prepare your internal communications with care with these five steps: 1 Don’t overdo email: Only send global emails weekly and ensure they are error-free, carefully planned and scheduled.

2 Create shared online resources: Cloud-based platforms offer many options for multi-site businesses.

3 Encourage interaction: Message boards and private groups on social media networks can be used to great effect.

4 Repeat core messages: The brand ethos and message should shine throughout your communications so they are seen and felt by all.

5 Be positive: Offer support more than criticism and ensure communications are associated with good news more than bad.

66

Our support facilities should be there when the accountants need it. If we interrupt their working day then it’s time lost helping clients Karl Sandall, TaxAssist Accountants

emails that our franchisees receive and can make them feel as if they are being bombarded,” says Brown. “We have made our communications to the group consistent by sending them out every Friday, which has solved this problem.”

Brown also rates face-to-face encounters; the company organises biannual regional events and an annual nationwide meetup. “We’ve also learnt that there is no replacement for face-to-face interaction and that franchisees enjoy sharing their experiences with other members of the network,” says Brown.

Values

Good internal communications needs to be multi-channel but the nature of the message is also key. Franchisees need to be continually reminded of the company’s core brand values. Brown feels internal communications and brand consistency go hand-in-hand as they enable individual franchisees to work together. “Consistency in the brand is only achieved through positive communication,” he says.

“Additionally, one of the real advantages of being a franchisee is that you have the support of the entire group. We’re able to use our internal communication to facilitate the sharing of knowledge between all of our franchisees.”

Positivity and encouragement help create a stronger working culture, suggests Richard Ilsley, managing partner at the Sales and Marketing Consulting Group, which advises growing businesses on their communications. He says internal communications are too often negative as they tend to be used when something has gone wrong. “A very common occurrence is that managers only ever talk to their colleagues from other sites or departments when there is a problem or when they want something,” he says. “So communications very quickly become associated with bad news or more work.”

Without a doubt, taking a positive approach to internal communications – and utilising the most appropriate tools – can ensure the smooth running of any franchise business.

elitefranchise | October 2015

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Franchise businesses come in all shapes and sizes

From high street franchise businesses to high rise offices, insurance is essential for every business.

Allianz Insurance plc provides a range of mid-corporate insurance solutions that can be tailored to suit your needs.

To find out more contact: Maurice Logie Moreland Insurance Brokers maurice@morelandinsurance.com

01698 456500

www.morelandinsurance.co.uk

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Allianz Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 121849.

W.S. Moreland & Co Ltd is authorised and regulated by the Financial Conduct Authority and our registration number is 304481. Moreland Insurance Brokers is not part of the Allianz group of companies. Allianz Insurance commercial insurance products are available from other insurance intermediaries.

EliteFranchise1015.indd 1

07/10/2015 17:59

Your future Your business Your rewards I was looking for a business opportunity, which would give me a balanced lifestyle, a healthy working environment, and the opportunity to grow a business that would provide a secure future for my family and me. Lawnscience ticked all the boxes and I’ve not looked back since starting in spring, within 8 weeks I had already scheduled my first years financial goals.

It was the right choice for me.

Scott Harrison, Lawnscience, Birmingham

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www.lawnsciencefranchise.co.uk EliteFranchise1015.indd 1

06/10/2015 14:08

LEGAL

End of the line Š Geoffrey Sturgess 2015

The best laid plans oft go awry and not every franchisee / franchisor relationship goes the way it should.

Learning how to terminate an agreement fairly is an essential skill

A

franchise agreement produced by any competent franchise lawyer is designed, amongst other things, to ensure that the franchisor can terminate the agreement if it needs to or if it is broken by the franchisee. If the franchisor does it properly, it should be confident of defeating any subsequent claim from the franchisee for damages relating to wrongful termination.

Defeating such a claim is not, however, necessarily enough. Even if it wins, the franchisor will have expended time and money on the dispute and it will never recover that cost from the ex-franchisee.

Furthermore, if the termination is not managed well, the franchisor will for a time lose the income from that franchisee’s territory and may manage to upset its other franchisees. A very public dispute could also put off prospective franchisees from joining that network. As they say, not all publicity is good publicity.

There are, of course, circumstances where immediate and unplanned action is required. Perhaps the franchisor has discovered that the franchisee has been dishonest or set up a separate and competing business. In such circumstances, the franchisor should come down on the franchisee like a ton of bricks, meaning fairness and brand management go out the window. Apart from the damage that may be caused by such a franchisee, it is sometimes necessary to demonstrate to the rest of the network that such behaviour will not be tolerated. Most other franchisees will support the actions of the franchisor in those circumstances, particularly if the behaviour of the errant franchisee risks tarnishing the good name of the franchised business and, in turn, their own businesses.

But more often than not, a franchisor will terminate a franchise agreement when a franchisee is just not up to the job, lazy or for

A very public dispute could put off prospective franchisees from joining that network October 2015 | elitefranchise

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ADVERTISING FEATURE

Probably the best franchise in the UK today “It has been the most fun that we have ever had running a business” Adrian Keeling, thebestof Woking, attended an information day and met Head of thebestof Michelle Downey. “And what a fascinating day it was,” Adrian says. “The whole concept is well thought out and fun as well.”

Making local life better for everyone in the community thebestof might not be the most well-known franchise in the country, but with a ten-year track record and more than 150 UK franchises, it’s certainly one of the most successful.

After it was launched in 2005 (by Yorkshire-born entrepreneur Nigel Botterill, above), thebestof quickly became the fastest growing franchise in the UK. Over the last few years the franchise has shown no sign of losing pace: thebestof continues to go from strength to strength, with Nigel and his team amassing a cupboard-full of awards along the way.

After all, what securer way is there to start your own business? Franchising has a faultless formula.

Throw together an ambitious business owner and a successful business model with all the support you could dream of, and your business has a far better chance of success… if done well that is!

What is thebestof?

Thebestof is a marketing franchise.

Our franchisees identify the best businesses in their area and using marketing tools, unique to thebestof, work with the business owner to showcase and promote them. There’s only room for one thebestof franchisee in each town – one individual, partner or team who will champion the very best local businesses in each area. Could that town’s hero be you? www.getthebestof.co.uk

He and his wife Amanda were impressed with the support infrastructure available. “It’s amazing,” he says. “It’s clear that they really care about their franchisees. We purchased the franchise for our home town of Woking and were on the next induction day for new franchisees just five days later. We now have over 70 clients and a residual income of £5,500 a month. We can only say it has been the most amazingly fun experience that we have ever had running a business.”

Residual income is the key £72,000 by the end of the year + £15,000 in sign up fees is very achievable.

Stuart Pate, franchisee for thebestof Kettering since 2005 says “The earning potential is very simple. It’s very black and white if you get 5 businesses per month that will get you £72,000 by the end of the year + £15,000 in sign up fees.

Connecting local people and businesses With thebestof, a franchisee becomes part of the community and works to connect local people, the businesses and organisations that serve them. Quite simply, thebestof is the go-to place for everything happening locally!

Because of the nature of the business, it’s a huge help if franchisees are passionate about their local community.

Thebestof team are choosy about who they accept as a franchisee - it’s a people business after all. They know well the characteristics required to become successful.

Thebestof’s application process may be rigorous, but new franchisees don’t necessarily need sales experience or technical skills. What matters most is that each new franchisee is a proper people person.

If you’re bright and switched on, not intimidated by hard work and you’re passionate about making a positive difference to your community, then thebestof could be the perfect franchise opportunity for you.

Find out more To get a full Information Pack, visit www.getthebestof.co.uk or contact thebestof team on 0121 765 5556

Imagine doing that in year 2, year 3 and so on, you can clearly see what can be achieved. With 200 businesses your monthly residual income would be in excess of £19,000. Residual income is the key. It means that you do not have to think about how to earn each month because your income comes from monthly membership payments from your local businesses.

There are additional revenue streams also. Every day is different but you get such a sense of satisfaction from this role, which is why I have been a franchisee with thebestof for 10 years now and still enjoy it as if it were day one.”

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

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

Diana Vickers, thebestof Pembrokeshire

Penny Wilby, thebestof Sudbury

Check if your area’s available at www.getthebestof.co.uk or call Rosie on 0121 765 5556 Thebestof FP Oct15.indd 1

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LEGAL

some other reason just can’t consistently comply with the performance or quality standards legitimately required by the franchisor.

A franchise agreement can be terminated by the franchisor by service of notice under the provisions of the franchise agreement, by agreement or – although strictly this is not termination by the franchisor – by not allowing the franchisee to renew when its term comes to an end.

There are a few caveats however: termination by notice is normally only permitted if the franchisee is in breach of the terms of the agreement, which would include not complying with the provisions of the franchise manual. Meanwhile, a franchisee is normally entitled to renewal of their agreement unless they are, or have been, in breach of its terms or its performance criteria.

Whatever the reason the franchisor has for terminating and whatever the method it wishes to use, the first stage is generally to establish that it has the right to terminate or not renew, as the case may be. Often the agreement will require the franchisor to give the franchisee an opportunity to correct their breach in order to prevent termination. The requirement of fairness in the bfa’s Code of Ethics would also suggest that a franchisee should be given a chance to put things right. If the breach or under-performance is rectified, that may be sufficient and there may no longer need to be a termination.

Sometimes however, the particular breach is merely a symptom of a franchisee not being suitable for the franchised business. At this stage it is essential that the franchisor takes legal advice, both on whether it has the right to terminate and the correct procedure and timetable that it should follow in order to terminate correctly and fairly.

Once the franchisor has established that it has the right to terminate – and sometimes even if it does not – it should then consider whether there is any alternative to forced termination. That would be termination by agreement, either with the parties agreeing that the franchisee should just give up the franchise or ideally by them working together to achieve a sale by the franchisee of their business and / or territory to a new franchisee.

A sale in these circumstances should produce the fabled win-win outcome. The franchisor gets rid of an unsatisfactory franchisee, the territory remains occupied

A franchisee should be given a chance to put things right

so there should be no – or at least less – loss of income to the franchisor and there may be a training fee or other upfront payment from the incomer. From the franchisee’s perspective, they should at least get back their upfront franchise investment – possibly with a small goodwill premium on top – and will be able to leave with their head held high. The franchisee in these circumstances will not be bringing a claim against the franchisor and the franchisor does not need to declare a franchise termination when disclosing details of the business to prospective new franchisees. The other franchisees are reminded of what a nice, but firm, company the franchisor is.

It does not need to be a direct sale between the outgoing and incoming franchisees. It could be arranged as a surrender to the franchisor followed by the grant of a new franchise to the incomer with some of the incomer’s payment ending up in the pocket of the departing franchisee or used to pay off their debts to the franchisor.

If the win-win solution is not obtainable then there may be no alternative to forced termination. Except in those ‘ton of bricks’ scenarios, it is still good to talk and it may be necessary to comply with the Code of Ethics. In the final analysis, however, the franchisor needs to look after the business and may have to remove a franchisee that’s unwilling to go.

The better such a franchisee has been treated and the better they understand the reasons for their termination, the less likely they are to dispute it, create bad publicity or try to set up in competition in their old territory. Whatever way you look at it, that is good news for the franchisor.

October 2015 | elitefranchise

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Why buy a sandwich franchise?

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

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

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

A resale opportunity has arisen for one of our Franchises based in Ipswich. The franchisee started the practice in 2010 from shop front premises. The business has 102 clients with gross recurring fees of c£55,000.

As the business operates from a shop front, any purchaser would be walking into a ready-made business with a fully fitted shop complete with furniture, IT and telephone systems. This represents an excellent foundation upon which a new franchisee can further develop an already established business.

The business has enjoyed regular growth with the majority of new clients coming from recommendations, walk in business and inbound leads generated from the Support Centre.

For a franchise re-sale you only pay us a half franchise and training fee as we recognise that you will also be investing in purchasing the business. You will of course benefit from the training and support that a new franchisee would expect.

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Franchisee: Greater Manchester Location: Greater Manchester Investment: TBC Established: 2006 Turnover: £240,000

A resale opportunity has arisen in one of our franchises based in the Greater Manchester area.

The franchisee operates from a shop front so any purchaser would be walking into a readymade business with a newly refurbished shop complete with furniture, IT and telephone systems along with experienced, well qualified staff.

This represents an excellent foundation upon which a new franchisee can continue to develop a substantial business which is very well known in the local area.

The business has enjoyed regular growth with the majority of new clients coming from recommendations, walk in business and inbound leads generated from the support centre.

The business has gross recurring fees of c£242,000 and the franchisee is now looking to realise the asset built.

For a franchise re-sale you only pay us a half franchise and training fee as we recognise that you will also be investing in purchasing the business. You will of course benefit from the training and support that a new franchisee would expect

No+Vello Franchise Opportunity In Slough For Sale Slough, Berkshire £30,000

A very rare opportunity to take on a recently established clinic in Slough The chance to take over a No+Vello clinic that is already established doesn’t come along too often. But that’s exactly what’s on offer with our Slough clinic in Berkshire.

With the current owners husband accepting a Job abroad Manuela is now offering her much loved clinic for sale so she can accompany her husband.

Using launch campaigns to build a strong and loyal client base.

To cope with the ever-increasing demand for the clinic’s cutting edge IPL treatments, she currently employs one full-time therapist, and works on a part-time basis herself too. treatments on offer in Slough are IPL Hair Removal, Skin Rejuvenation and Pro Skin (Galvanic and Ultrasonic Skin Cleansing).

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07/10/2015 19:08

BE PART OF THE EXCITING NEW CURRENCY REVOLUTION

Largest cashless banking facility globally

Generate revenue 24/7

22 year old pedigree

Enjoy exponential profits

Franchising in 13 countries

Be part of a franchise community

Over 60% of businesses need our service

working ahead of the curve

UNITED KINGDOM

CHINA INDIA

SOUTH KOREA HONG KONG TAIWAN

THAILAND MALAYSIA

COSTA RICA

SINGAPORE AUSTRALIA Established herehere in Aprilin1993.

Established 1993 Currently operating in twelve with over, 70,000 card countries with over 15,000 card holders in 12 countries.

LSPHIVW ERH WXEǺ

NEW ZEALAND

Enquire to: franchising@bbxuk.com 0333 4002014 www.bbxuk.com/bbx-franchise EliteFranchise1015.indd 1

BB UK

BUSINESS BANK EXCHANGE 06/10/2015 14:12

Operate your very own branch of The Bank of Spare Capacity.

Now is your chance to be part of the CURRENCY REVOLUTION with the rise of alternative currencies gathering pace along with the acceptance of new methods to fund business growth.

BBX has been a leader in the marketplace since inception in 1993 and is proud to have a strong franchising pedigree allowing it to expand into 12 countries covering 4 continents.

Our franchisees invariably have a background in sales management and are good motivators and communicators. Depending on the individual strengths a franchisee will chose to build either a Regional or District franchise, details below, which both enjoy the following key benefits: • Worldwide brand and proven business model.

• A product at the forefront of the currency revolution currently taking place.

• Earnings 24/7 due to international reach and automated systems.

• High profitability and re-sale values.

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

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

Regional P&L Forecast YEAR

P&L

1

£64,906

2

£133,956

3

£313,006

4

£418,342

5

£535,943

District P&L Forecast YEAR

P&L

1

£50,838

2

£121,015

3

£251,935

• Running periodic networking events

4

• Maximising the clients usage of our currency

5

£305,135 £347,396

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

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

BB UK

BUSINESS BANK EXCHANGE 06/10/2015 14:12

FRANCHISE FOCUS

ActionCOACH

ActionCOACH is a multi award winning franchise.

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

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

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

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

BBX UK

Over 60% of businesses have the ability to service more customers without increasing their fixed costs – this is called their SPARE CAPACITY. If their spare capacity is not used its value will be lost forever which costs UK businesses hundreds of billions in lost revenue annually.

BBX is the largest Global Cashless Trade Exchange offering businesses a facility to turn their spare capacity into additional revenue without discounting. Building on 22 years of franchising we have opportunities in the UK offering:

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

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

DNS Accountants

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

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

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

Home Instead Senior Care

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

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

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

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FRANCHISE FOCUS

PA4You

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

Call us for a free trial

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

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

Mail Boxes Etc

Mail Boxes Etc. is one of the world’s largest non-food retail franchises. It is the only High Street chain that offers consumers and local companies a truly comprehensive range of national and international courier delivery, postal, print and copy services. As well as mailbox rental, stationery and packaging supplies plus many other complimentary profit streams. When you join Mail Boxes Etc. you get the full support of a globally-recognised brand with a proven business model and a comprehensive induction and training system.

• Established, fast-growing network with a proven system • Full support of a globallyrecognised brand • A complete turnkey start-up package from £60,000 • Comprehensive start up and initial training • Continual operational and marketing support

Call 01608 649238 | email: mbe.co.uk/franchise_opportunities | www.franchise@mbe.co.uk

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

Contact phone 01202 292829 | email: propertyfranchise@martinco.com | www.propertyfranchise.co.uk

Women UK

Your own glossy magazine and commercial membership directory.

WomenUK.co.uk is the ultimate ‘online’ portal for women in the UK. Packed with fashion, style, health, interiors, business, family and more. WomenUK.co.uk provides readers with advice, tips and news on everyday life both on a national and local scale.

WomenUK.co.uk is available to license on a county to county basis and provides businesses the opportunity to reach key decision makers both at home and at work through strong editorial and business listings. Perfect opportunity for anyone wanting to run their own business whilst building a residual income.

• Complete Franchise £9,999 • Full Training Given • Low Overheads/ Work from home • Realistic Earning Expectation in excess of £100,000 within two years • Payment Plan Available

Contact: Carole on 07525842212 or carole@ukwomenmagazine.co.uk for more details. | www.womenuk.co.uk

October 2015 | elitefranchise

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Invest in Change

One of us makes a difference, together we make a change

T

he total number of people with unmet care needs has risen by 9% in the last two years. Recent reports have demonstrated that there is an estimated 900,000 people who need care that are left to fend for themselves. By 2030 over 2 million people will lack informal care from an offspring. Over the last 100 years life expectancy has continually seen growth. The 65 and above age group will increase 89% over the next twenty years, and the 85 and older population will grow 74% during the same period.

We are Europe’s the largest provider of live-in care solutions, who independently offer our clients affordable, alternative care solutions in the comfort of their homes. For the past ten we have witnessed the positive change and the impact this has on the lives of over 3500 people. We at Promedica believe in creating positive change, that is why we are always interested to work with potential franchise partners and offer business opportunities, to those who have a genuine desire to make a difference.

0800 086 8686 info@promedicaplus.co.uk

#InvestInChange @PromedicaPlusUK

www.promedicaplus.co.uk

Franchise Diaries with Kate Lester

Shared success From your franchisees all the way down to your suppliers, collaborative working is a win-win for all involved

A

s a hippy at heart, I’ve spent some of the summer doing yoga by the pool or at a festival – it’s proven the perfect opportunity to think about the way we do business and what makes us different.

My business is all about relationships, whether that’s with couriers, carriers, clients or franchisees. In the last 20 years I have only had to close the door on four clients who I felt I couldn’t work with. This is not to say that other stakeholder relationships have always run smoothly – bad situations in business happen but it’s my responsibility to problem-solve and make sure they all reach a positive conclusion.

This applies to our franchise recruitment process too. Franchisees help us to build our brand and we help them to build their business in their local area. As a consequence we reach and complete goals quicker and more effectively as my business interests are aligned with my franchisees’ interests.

Before you say it – this is not hippy nonsense. It promotes a better way of working and stems through not just my management team but also my clients, their teams, my couriers and my franchisees.

We have seen tremendous benefits as a result, including a more pleasant working atmosphere and a willingness by both parties to exceed expectations on joint projects. By making a business more efficient, you can increase your productivity and improvements in your productivity improve your bottom line. It’s just sound business practice.

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Here at Diamond Logistics, we’re about building bridges and partnerships, not burning them. We embrace that with the partnerships between Diamond HQ, Its clients, its suppliers and its franchisees. We call it shared success.

It is one of the reasons why I chose to expand my business through franchising.

I was willing to accept a lower margin by letting people open a Diamond depot in their area as I knew they would truly care about satisfying clients and delivering great service. Why? Because their business success depends on it.

Sharing success with franchisees should be at the heart of any franchise. It means everyone benefits. Diamond has recruited in key areas of the franchise including network support to help encourage and mentor our franchisees in turning their franchises into super successful depots. It’s about collaboration over a shared vision that I, my team and my franchisees all support.

This is also true of Diamond’s supplier base. The suppliers that have stayed with us

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Franchise diaries

Sharing success with franchisees should be at the heart of any franchise

for the longest have been the ones that have had a truly vested interest in where we are going and what we are doing. These are the suppliers who are keen to work with our franchisees; not just Diamond HQ. I would happily pay more for a high quality service if I feel that they are invested in Diamond.

The last thing I want to do is skimp on price as that would only damage their business. If my suppliers are successful, it means I can carry on using them for years to come, so helping them be profitable just makes good business sense.

But not all business relationships are good relationships. We’ve had some bad clients who, as I mentioned, we cut the chord with.

At the end of the day, you’ll only be wasting time and resources chasing payment from them. So what’s the point?

It’s the same with franchising. Whether you are recruiting franchisees or investing

in a franchise, there are certain questions you need to ask. Does the business have a vested interest in making me successful?

Are these people really going to commit as much to my business as I am to theirs?

If you have already submitted your application for a potential franchise or are looking at potential franchises to invest in, have you been asking these fundamental questions? I would recommend you do.

And, for any franchisors out there, how are the relationships among your franchisees, clients and suppliers? Are they synced with your business interests? Do your suppliers align to your goals, missions and values?

Shared success is not just about the feel good factor – although my inner hippy loves that too. It’s about boosting profit. And it really does. The improvement in my balance sheet is proof of that.

October 2015 | elitefranchise

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Over the past years, ESPRIT has intensified its dedication to franchising and refined its franchise package. Today, we’re proud to offer you one of the best franchise packages in the industry. We have developed a solid franchising concept, which enables you to successfully sell ESPRIT products.

We strongly believe that intensive training is the key to success.

Therefore we have developed an unique franchise training program, which includes every aspect of running an ESPRIT store and all you need to know about our corporate identity concept. As an ESPRIT franchisee, you won’t be a lone fighter any longer. You will have the power of one of the largest lifestyle companies in the world behind you.

When you decide to join our franchise network, we will first evaluate the potential of your desired location. It is important to consider factors such as population density and average age, customer flow, and local competition to ensure the future success of your shop.

If the market analysis shows a good potential of your location, we will assist you in the lease negotiation process. When your shop is up and running, you will receive new decoration each season. Our decoration team will visit your store to create the new seasons’ look in your ESPRIT store.

Pass on the spirit ESPRIT is always looking for talented individuals who share our high values. As an ESPRIT franchisee, you need to be a communicative person, with a passion for great customer service and fashion, and the ability to lead and motivate a team.

If you are interested in being part of the dynamic fashion and lifestyle business, and can demonstrate strong leadership qualities, please contact us on our exciting franchise opportunity. www.esprit.com

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Join the No. 1 Global Franchise

I’m so glad I decided to visit the BFA-approved exhibition as it gave me the chance to find out more about franchising and what opportunities were available.

It can be hard work but support is always available and I was quickly able to employ a strong team to help run the gym day to day. The club has enjoyed huge success since it opened and I am already exploring the possibility of opening another club.”

John Devlin Anytime Fitness Urmston

NEARLY 3,000 clubs open and more than 2.5 million members in 23 countries worldwide

WHAT OUR FRANCHISEES ENJOY: Over 95% of our franchisees are not from the fitness industry Funding available from major banks Continuous support every step of the way On average, clubs reach breakeven at 600 members Contracted memberships give guaranteed income Low fixed monthly management service fee Low staffing model

Currently over 55 clubs trading and a massive 200+ UK territories sold to date

Take the next step

Call us on 0800 0333 7773 jointhefamily@anytimefitness.co.uk AnytimeFitnessUK

EliteFranchise1015.indd 1 A4 Ad - Oct 2015.indd 1 AF Business Franchise Mag

“The fastest growing fitness club in the world!” IHRSA

www.anytimefitness.co.uk

AnytimeFitUK

07/10/2015 12:41 17:45 01/10/2015