Elite Franchise Magazine | March 2016 by Elite Business Magazine

March 2016 ÂŁ4.50

elitefranchisemagazine.co.uk

Basilico

The pizza franchise delivering fresh Italian flavours

The power of PR

Getting your brand in the public eye

Sign

language Over the course of 25 years, Craig Brown has slowly worked his way up the ranks of Signs Express. Now managing director of the largest signs company in the UK, heâ&#x20AC;&#x2122;s waxing lyrical about innovation, MBOs and why franchising is all about communication

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

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

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ADVERTISING FEATURE

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

et’s face it: there are a lot of franchise choices out there and an almost infinite range of industries, specialisms and business types to choose from. So how do you make that choice? It makes sense to go for a franchise with stability, one that offers you an established brand with proven recession resistance, extensive support and training and flexible startup options. So far, so obvious. But what else is out there and what else can you get? Looking around, it’s clear that not many franchise opportunities can offer gold-plated guaranteed offers of monthly All our business and immediate and ongoing franchisees are demand in every area. That’s where Janiguaranteed to King comes in. Jani-King is one of the be offered an largest commercial cleaning franchise agreed amount companies in the world and has been of monthly present in the UK for 23 years. We thrived business during the recent economic downturn and 2015 was a particularly buoyant year, generating £1.2m of new business for existing franchisees. We also won a prestigious new contract with national restaurant chain Byron Burgers last year, adding them to our existing client list that includes H&M, Wagamama, Diesel, Lexus and Mercedes car showrooms, Yo Sushi and Giraffe, amongst others. 4

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

elitefranchise | March 2016

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

Plans start from as little as

£18,000

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

East and West Midlands Yorkshire London and M25

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

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

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

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CONTENTS

xx REGULARS 9 Editor’s letter 10 Contributors 12 News & events 80 Franchise diaries COLUMNS 15 Karen Kelly 17 Nigel Toplis 29 Tony Bowman

41 Top of the class

FEATURES

Pitman Training has brought new skills to foreign shores

30 The Italian job

Basilico is giving pizza lovers the gourmet treatment

34 Passing on the torch Franchise resales offer a different kind of opportunity

47 False profits?

Why franchises can’t afford to fudge the figures

54 Hot off the press

A franchise won’t get far without a bit of PR

60 Diversity matters

A modern company welcomes workers from all climes

64 Tech on the world

Going global is a breeze in the digital age

69 It takes two

Franchise agreements and ops manuals: what’s the difference?

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

elitefranchise | March 2016

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20 THE ELITE INTERVIEW

Craig Brown talks signage and franchise success March 2016 | elitefranchise

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xperts

E The Catering Business

Are you ambitious and excited by the world of food? Do you want the freedom of working for yourself but with support and guidance to help you along? Talk to the Catering Business Experts at Jasper’s. We have built the most forward thinking food franchise model out there. We are not part of the saturated fast food world that requires half a million pounds worth of investment to leave you static in expensive retail outlets with a limited offering. Jasper’s provides buffet style catering to business customers, offering more choice than any other caterer. This means high value, repeat orders from leading companies in the UK such as Lloyds TSB, the NHS, as well as charities and independent businesses. No working unsociable hours, no late night drunks, no expensive retail rates or reliance on passing trade.

g opportunity?

terin What is the Jasper’s Ca

 Multiple revenue streams in a resilient market place: buffet catering, contemporary food to share, fruit, snacks and sundry delivery, and more  In year one, Jasper’s guarantees to book you £1,000,000 worth of prospective business appointments  You won’t pay any Management Service Fees for the first nine months  You will get £40,000 worth of free stock (at sale value) in your first four months of trading  Your own exclusively mapped business territory of around 13,000 prospective customers  You professional kitchen and office is based in a commercial business unit - no expensive high street rents and rates  Our unique Business Management System is your tool to managing your business  Nobody in our marketplace can compete with our range of products and services  The market potential is vast, with sandwiches alone in this industry worth £2.8billion a year

The financials In total you can expect the following costs to open your Jasper’s franchise: - £29,997 + VAT for the franchise fee which grants you the right to trade as a franchisee under the identity of Jasper’s Catering Services Ltd for the duration of the franchise agreement. - £54,500 - £60,000 + VAT for the design and fit out of your commercial kitchen - £25,000 working capital (this amount varies depending on your own needs) In addition, as with all franchises, you will pay a Monthly Service Fee, but not until month ten.

No other food franchise can offer you what Jasper’s can: everything you need to build your own catering empire. That’s why we say if you are looking for THE food franchise then Jasper’s is it! email: beyourownboss@jaspersonline.co.uk www.jaspers-franchise.co.uk JASP002 Jaspers FP Mar16.indd 1

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WELCOME VOLUME 04 ISSUE 03 / 2016

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

in good company

t’s all change at the bfa. After 27 years as the organisation’s directorgeneral, Brian Smart has stepped down from the role and will be replaced by Pip Wilkins, who has served as the bfa’s head of operations since 2013. It goes without saying that we wish Smart a happy retirement and look forward to seeing how Wilkins will take the association forward in her new role as CEO. We’ve had the pleasure of working closely with the bfa over the last four years and it’s evident the franchise sector in the UK wouldn’t be where it is today without the organisation’s tireless efforts to promote it and set

standards of best practice. It’s something that we also try and do at Elite Franchise. And something, I’m pleased to say, that has been recognised by the bfa, which has welcomed us as an affiliate member. But we’re not the only ones ascending the bfa’s ranks. This month’s cover star Craig Brown has recently been appointed to the association’s board in recognition of his contribution to the industry. Over the last 25 years, he’s helped grow Signs Express into one of the country’s leading franchises. We’re delighted to join such esteemed company.

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

cemedia.co.uk

March 2016 | elitefranchise

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CONTRIBUTORS

JENNY ALLEN

A graduate from the University of West London, Allen has certainly brought some sparkle to this month’s spreads. But design isn’t the only discipline she excels at: when she’s not making our magazine look marvellous, Allen enjoys perfecting her percussion skills by banging the drums for a local orchestra. You could say we’ve been lucky to snare her.

Kate legg

After more than a decade advising other business owners, Legg has recently fulfilled a long held ambition and become one herself. Now the founder, director and CEO of Komerse, a legal practice specialising in commercial law and franchising, Legg has applied her expertise to pen us a piece on the interplay between franchise agreements and operations manuals. 10

Abdul montaqim

He’s recently written about the growing influence of robotics and automation on enterprises. Now, Montaqim is foraging for information about the trends and perspectives affecting Elite Franchise readers. Having been involved in a number of startups over the years – as an employee and as an owner – he understands some of the challenges and rewards of setting up a business.

jon card

The author of our features on the ways that diversity stands to benefit franchises and using technology to expand abroad, Card is a freelance journalist specialising in business, tech and media. He works as a freelancer for The Guardian, The Times, The Telegraph and anyone else with a budget. He is also the proud father of two young children and sleeps when they do.

elitefranchise | March 2016

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SUPPORTING BRITISH BUSINESS

WE COMMIT TO GROW OUR LENDING TO BRITISH BUSINESS

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

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

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

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NEWS Swimkidz makes a splash in Thailand Most parents want their children to be able to swim and parents in Thailand are no different. That’s why Swimkidz, the British swim-school franchise founded by Trish Hare in Reading in 2008, has opened its first centre in Bangkok. As part of the deal with Swimkidz, a local franchisee has opened the purpose-built facility in the Thai capital. It follows a strong period of growth for the brand, which started franchising in 2011. “It is really exciting to launch Swimkidz in Thailand,” said Hare. “We have completed the comprehensive training of the teachers and they have started lessons in the amazing Swimkidz Aquatic centre in Bangkok.” Everything seems to be going swimmingly for Swimkidz.

Change at the top for the bfa All good things come to an end eventually. Nevertheless, it was still sad to hear that Brian Smart is stepping down as the director-general of bfa after 27 years. Thankfully the organisation has been left in safe hands with Pip Wilkins, the association’s former head of operations, stepping in as Smart’s successor. Set to take up the role of CEO on April 6, Wilkins has spent 17 years with the bfa and is regarded as one of the UK’s leading franchise professionals. “There is no better time to be involved in franchising thanks to its strong recent growth, with the industry’s turnover up 11% in the last two years and now exceeding £15bn,” said Wilkins. We wish her the best of luck as the new foreperson of UK franchising.

PHOTO: EMILIE SANDY

WORDS: ABDUL MONTAQIM, JOSH RUSSELL

London Stock Exchange recognises Belvoir

Property lettings and sales franchise Belvoir is clearly going from strength to strength. Not content with being one of the few UK franchises to be a publicly listed company, the franchise has been now been recognised by the London Stock Exchange Group (LSEG) as one of the UK’s most inspirational companies. The LSEG’s 1,000 Companies to Inspire Britain recognises the UK’s fastestgrowing and most dynamic small and medium-sized enterprises; Belvoir was included thanks in no small part to its concerted acquisition drive and its the fact that its network has grown 32% in the last year alone. Inspiring stuff indeed.

elitefranchise | March 2016

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Three more for Right at Home

The Creation Station signs monster deal with Sony

Events

Partnering with a global brand is great for any franchise, so we were pleased to learn that The Creation Station, the children’s arts and crafts franchise, joined forces with Sony to run creative workshops for kids across the UK last month. The classes were run through half-term alongside a ‘Design a Monster’ competition where children were asked to design a monster inspired by the film Hotel Transylvania 2. Prizes included a copy of the book, The Art of Hotel Transylvania 2, signed by the film’s director. Here’s to more partnerships like this in the future.

People maintain that good things come in threes. But you don’t have to tell Right at Home: the global homecare franchise has just scored a hat-trick of new franchisees. Bryan McMorrine, Joe Morgan and Matt Gillie will be launching new outlets in central London, Portsmouth and Hereford respectively in the coming months. And it seems the trio have more in common than just a desire to build their own care business: all three are moving into the sector from corporate roles, including marketing, investment banking and aviation. Right at Home will be delighted to secure such high flyers.

Dragon helps Mum2Mum Market take flight There’s nothing like watching a nascent franchise coming to term. And Mum2Mum Market definitely fits in this category: the company is gearing up for significant expansion, thanks in no small part to its recent turn on Dragons’ Den. The second-hand baby clothes marketplace secured £35,000 of investment from Deborah Meaden for 25% equity. Founder Cath Harrop is now looking to take the franchise from 35 to 100 sites within the next two years. We’re expecting big things.

The British & International Franchise Exhibition March 11 - 12 Olympia, Hammersmith Road, London, W14 8UX

bfa Prospective Franchisor Seminar April 6 Olswang LLP, 90 High Holborn, London, WC1U 6XX

bfa Specialist Seminar: Effective Franchisee Recruitment April 14 bfa Offices, 85f Park Drive, Milton Park, Abingdon, OX14 4RY

EWIF South West Regional Meeting March 24 TLT LLP, 1 Redcliffe Street, Bristol, BS1 6TP

bfa Prospective Franchisee Seminar April 7 Olswang LLP, 90 High Holborn, London, WC1U 6XX

bfa Northern Forum May 6 Hilton Manchester Airport, Outwood Lane, Manchester, M90 4WP

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

March 2016 | elitefranchise

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AnytimeFitnessUK

AnytimeFitUK

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Karen Kelly, founder & managing director, Cleanhome

Support franchisees by promoting your brand People invest in a franchise to have a recognised brand above their front door but it can all count for nothing if their franchisor isn’t getting the word out Investing in a franchise offers aspiring entrepreneurs many advantages that aren’t available to them when starting a business from scratch. Not only do franchisees benefit from existing systems and training in how to use them but they also have access to help and support from people who have already made the leap into franchising. This support helps franchisees hit the ground running and avoid the common mistakes many people make when starting a business. However, perhaps one of the biggest advantages that franchisors offer to their franchisees is access to a well-known and established brand. It means that customers are more likely to trust the quality of the products or services. McDonald’s, which is currently ranked the sixth most important brand in the world, has enjoyed great success as a result of its brand’s uniformity. Whether you visit a McDonald’s franchise in France, the UK or the US, the brand is instantly recognisable and you will receive the same product, service and customer experience. This is a vital part of the success of the business and its franchises. The concept of uniformity should be taken seriously by franchises of all sizes and extends to the alignment of their external communication channels with their core values. Small franchises can underestimate the importance of investing in their communication channels, which can ultimately hinder their growth. On the one hand, existing franchisees may struggle to promote the

business in their geographical area because of a lack of brand awareness while, on the other hand, that same lack of brand awareness may put off potential franchisees. When someone buys a franchise, they hope to receive at least two things: a recognised brand and a proven operating system. A lot of smaller franchisors provide the practical support but are reluctant to invest in targeted marketing and PR campaigns, believing that effective marketing is possible only for big players such as Costa Coffee or Subway. Building network-wide adherence to brand and operating standards is obviously important. However, a brand encompasses every aspect of a business that people see and encounter, from mentions in the press to its social media activity. So while an effective PR campaign is obviously no substitute for building a strong franchisee support structure, hand-in-hand they can help create a successful business proposition. Franchising is one of the UK’s most robust sectors, contributing £15.1bn to the economy. It’s important to keep that momentum going and make our sector an even bigger player; something that can be achieved by adopting a more professional approach to internal and external communications. March 2016 | elitefranchise

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Nigel Toplis, managing director, The Bardon Group

Do you have what it takes to be a successful franchisee? The most important due diligence a potential franchisee must carry out is identifying whether they’re ready for a career in franchising When you buy into a franchise you are buying into a system, a level of business support and a brand but most of all you are buying into an opportunity. However, what you are not buying into is guaranteed success. You, the franchisee, have an obligation to follow the system, work hard, be persistent and have ambition – if not then you may just as easily be heading for failure. So, whilst there is a host of due diligence you should do on the franchisors, their systems and their level of support, the most important due diligence to carry out will be on yourself. It’s important to ask yourself: do you have the personality to follow a proven business system? Do you have the capacity to work hard? Have you got real ambition and passion to run your own business? Will you work with the franchisor to grow your business or will you soon think you know better? Are you well organised? Are you able to multitask? Do you have patience, resilience and, most of all, a sense of humour? Most franchisors will tell you that they can train you in all the key aspects of running their business and, for the most part, that is true. However, you still have to have some basic commercial acumen, particularly in the area of securing new customers. No matter whether you are running a B2B

franchise, a retail venture or even a franchise aimed at children, you need some aptitude for generating business, not to mention a degree of aptitude for coping with the stress and rejection rampant in all selling situations. So if you think you have what it takes in the areas of selling, hard work and tenacity then the next thing you need to ask is: what is your job? Buying a franchise doesn’t automatically make you an entrepreneur – in fact it’s likely that if you’re becoming a franchisee you categorically aren’t. So what are you? You are both the managing director and the tea boy; sales director and rep; marketing manager and delivery driver; business development manager and receptionist. Because of this you need to ask yourself: do you have selfdiscipline? Can you work with other people? Are you capable of asking and taking advice? To be sure you have what it takes, all of your answers need to be yes. Finally, never make the mistake of thinking this is just a nine-to-five. You are not a manager: you’ll be dealing with all the problems and you won’t be able to switch off after closing. There will still be paperwork to be completed, planning to be done and suppliers to be contacted. The business is your responsibility: the most important thing is having the mentality, stamina, resilience and desire to grasp that responsibility with both hands. If you have this, then you have what it takes. March 2016 | elitefranchise

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

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

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

CRAIG BROWN

SIGN OF THE TIMES CRAIG BROWN HAS DEDICATED HIS LIFE TO SIGNAGE. WHICH MEANS THERE WERE FEW BETTER PLACED TO BRING THE INDUSTRY INTO THE 21ST CENTURY BY JOSH RUSSELL / PHOTOGRAPHY BY NATALIE SEERY

elitefranchise | March 2016

CRAIG BROWN

aving worked at Signs Express since it was first founded in 1989, it’s safe to say that Craig Brown, now the franchise’s managing director, knows the industry inside out. Growing up in Costessey, a small village on the outskirts of Norwich, Brown realised at a young age that he wanted a more hands-on career. “I wouldn’t say I ever struggled at school: I felt quite comfortable,” he says. “But you know when academia is not going to be the thing to drive you through.” Fortunately, there were plenty of options for a school-leaver at this time. “Back in the mid-1980s, the employment market was reasonably open,” says Brown. “If you wanted a job, you could get a job.” This is no overstatement. On approaching a high-street men’s outfitters with his CV, he was offered a job on the spot. Then during his first day off, he was interviewed for another job at Norfolk County Hall and, by the afternoon, had accepted a Youth Training Scheme position with local sign company Fitt Signs and Graphics. “For me, it was ideal,” he says. “I enjoyed art at school and I saw that as a way to show my artistic bent.” There’s no doubt that this on-the-job training set Brown up for his future career. “It gave me a great grounding,” he says. After an introductory tour of the company’s various departments, Brown decided that sign writing was the best fit for him and he began to train under its existing sign-writers. Not one to rest on his laurels, he was soon trying to master any and every skill available to him. “Because I was keen to learn, every time there was a project that was slightly different or difficult, I’d get involved,” he says. “You could totally immerse yourself in the process.”

March 2016 | elitefranchise

to delivering a quote within days and jobs in an average of two weeks. “Straight away, they came to the market with something different,” Brown explains. Additionally, at a time when digital signage-making equipment was first coming to the fore, Signs Express’s willingness to embrace technology gave it a definite edge over its competitors. “It was again just looking at how the industry had changed and how we could bring technology in to enhance the process,” says Brown. Over the years, the special relationship it has nurtured with its suppliers has allowed it to road-test new equipment and trial unique solutions as they arise. “We’re not necessarily a pioneer but we do want to make sure we’re on the crest of the wave,” he says. Placing an emphasis on its tech has evidently stood the company in good stead. After kickstarting its franchising operation with its Norwich pilot, Signs Express began its drive to secure franchisees. And it had a rather novel approach to giving them a feel for the operation. “We took the machinery that we were actually using to franchise shows,” Brown says. “We’d have jobs that we’d done previously running through the machines.” From here they would invite potential franchisees down for discovery days, at which they’d get first-hand insight into the running of each department, from design and production to marketing and procurement. And as the franchise grew, so did Brown’s role within it, thanks in no small part to his can-do attitude. “You’ve got to put yourself forward,” he says. “Every time I was given the opportunity to actually do something in the business, I took it.” By 1992, Corbett was looking to stand down from managing the day-to-day runnings of the Norwich store to concentrate on the running of the network – in Brown’s eyes, he was the natural person to step into Corbett’s shoes. “I said ‘look, I think I’m capable of doing it: give me six months to prove myself ’,” he says. “And I haven’t looked back since.”

I WAS KEEN TO LEARN;

EVERY TIME THERE WAS A PROJECT THAT WAS SLIGHTLY DIFFERENT OR DIFFICULT, I’D GET INVOLVED

In 1989, after a brief stint working for an independent firm that did sign writing for lorry curtains, Brown came across a job advert for Signs Express. Before long, he was sitting down for an interview with David Corbett, then the company’s MD, in an empty unit in Norwich that would go on to become its pilot. “He was telling me about what they intended to achieve and how they were going to grow this business into a national franchise,” Brown says. Given the fact there was no machinery or even office furniture on the premises, it seemed hard to envision this lofty future. “There was just a table, the porcelain to be installed in the toilet and a seat,” he recalls. “So you had to use your imagination.” Fortunately, imagination was something Corbett and his co-founder Frank Eliel had in plentiful supply – and they certainly had some big plans for transforming the signage sector. “They could see that the industry was quite old fashioned,” says Brown. “It was full of artisans, very talented people, but wasn’t particularly customer-focused.” One of the biggest pain points for many clients was the amount of time it took to turn a brief around, with many waiting several weeks just to receive a quote. Signs Express had a different approach, committing 22

elitefranchise | March 2016

CRAIG BROWN

From there, Brown continued to work his way up through the business, becoming technical support manager in 1995 and national accounts manager in 1998. This inevitably meant learning how to hire the right person to replace him. “Part of running the centre was bringing the staff up to a level to do the job that I’d been doing,” says Brown. “Each time the business has evolved, I’ve had to backfill that position to allow me to move on.” This wasn’t without its teething problems though: he quickly learnt that populating his teams with people like himself wasn’t the best way to go. “I thought if I replicated my own skills, it would be perfect’,” he says. “But it’s not: you end up with lots of yes people, which is not where you want to be.” By 2002, Brown’s stratospheric career progression had hit something of a ceiling. “I’d recently gotten married, the first child had come along, finances were reasonably tight,” Brown says. “But I couldn’t see any way past David and Frank: they’d shown no signs of wanting to retire.” One option that occurred to him was to buy into the franchise network but a spanner was thrown into the works when the opportunity he’d identified was snapped up at the last minute. “Someone came along at the 11th hour with the full asking price, which left me a little bit in limbo,” he says. “That’s when the guys said ‘rather than lose you, let’s tie you in as a non-exec director’.” And that wasn’t the only revelation to come out of their discussions. “They also shared some of their thoughts on what their exit strategy might be,” Brown says. The founders revealed that they were actually looking to sell the business and, whilst the valuation they’d put on the business meant Brown couldn’t buy it outright, a more creative solution presented itself. Signs Express was sold to a holding company part-owned by Peter Sales, Tony Marsh and Brown himself, allowing them to stage a partial management buyout (MBO) on the proviso that they bought the remaining 49.9% of the business within a set time frame. “Then we walked straight into the back of a recession,” he laughs. Fortunately, this didn’t severely derail the deal and, in 2013, the MBO was completed, albeit two years behind schedule. “Because we already had the vehicle to make it happen, it was just about replicating that,” Brown explains. Obviously, with both Corbett and Eliel exiting the business, this left the company lacking both a managing

and a financial director. Brown seemed like the natural choice to take the top spot. “I made the assumption that I was going to be the MD and my two fellow directors never challenged that,” he says. “From the role I’d been fulfilling it didn’t seem like a quantum leap: it seemed a natural succession.” But it wasn’t all that easy to make a break with the past. “Our board meetings were very retrospective,” Brown says. “They were reviewing things that have already happened, rather than necessarily looking where the business was going.” For this reason, they decided to bring in Carl Fisher as nonexec chairman. Having someone that wasn’t pre-occupied with the dayto-day management of franchisees or suppliers enabled Signs Express to continue looking to the future, rather than solely dealing with the past and present. “It was about having a high-level focus on the direction the business was heading in,” he says. “We actually needed to be challenging some of the things that were already in place.” Keeping an eye on the long-term strategic goals of the business has also required Signs Express to form close ties with others working in the sector. “I want to know what’s happening,” says Brown.

WE’RE NOT NECESSARILY A PIONEER BUT WE DO WANT TO MAKE SURE WE’RE ON THE CREST OF THE WAVE

March 2016 | elitefranchise

Craig Brown

e l o r y m o t t n r u e f a e y r n es d ago m i t e e i m f o i s r I o l g as a “I want to know what might potentially impact on my business and on my franchisees’ businesses.” For this reason, not only has Brown held the presidency of the British Signs and Graphics Association on multiple occasions but he was recently elected to the board of the bfa, following in the footsteps of his predecessor Corbett and former sales director Marsh. “This is the industry that we’re in,” he says. “If we want to actually make sure it’s healthy and moving forward, we’ve got to contribute.” It’s safe to say that this is indicative of Brown’s approach to business more broadly; wherever possible he attempts to adopt a more consultative approach with Signs Express’s franchisees. “I sometimes refer to my role as a glorified agony aunt,” he says. “It’s very lonely: these guys are running a business and there are things they can’t discuss with their staff.” All too often those working in the franchise industry view the relationship between franchisor and franchisee as a vertical rather than a horizontal one. But Brown would prefer to work together with franchisees as colleagues, not subordinates. “I’d much rather talk with someone and bring them along with the thought process than chucking a franchise agreement on the table,” he says. And it seems like this attitude is contagious. As well as netting no end of prizes from within the signage industry, Signs Express recently won big at the bfa HSBC Franchisee of the Year awards, with Lee Eaton, owner of Signs Express in Manchester, 24

netting the top gong. “Lee stood up in front of the judges and you could see he just had that passion,” Brown says. Whilst his work with Team Sky and Great British Cycling undoubtedly caught the judges’ attention, it was the degree to which Eaton involved every member of his staff in the process that sealed the deal. “He even did little cutouts of them and stood them in front of him,” says Brown. “He said: ‘I wanted my team to be here’.” Outside of his work at Signs Express, Brown has also attracted his fair share of plaudits, having won a handful of medals for duathlons and cycling events. But perhaps his most commendable achievement is his involvement last year in a 400mile charity bike ride around East Anglia, in which he helped to raise £14,000 for the East Anglian Air Ambulance. Signs Express is now signed on as a sponsor for future events, as well as having a regular commitment to raise money for local charity Nelson’s Journey. “Charity is really personal,” says Brown. “I’m not going to force anybody but we’ve found it’s something that our teams want to get involved with as well.” So what’s next for Signs Express? The company is currently sitting at 62 franchises and Brown is keen to grow the network to an even hundred in the next five years. Beyond this, his main focus is making sure that Signs Express’s current franchisees are supported in their journey as much as possible and that the company he has inherited performs as well over the next 25 years as it did over the last. “I’m the custodian of the brand,” says Brown. “I didn’t create Signs Express: I saw an opportunity and took it on. So I want to leave it in a better position than I found it in.”

elitefranchise | March 2016

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02/03/2016 15:37

Time for action! Look into having your own B2B consultancy, working closely with a 102 year-old business. CPA Online is the online division of The Credit Protection Association plc (established in 1914) with an enviable record of providing highly effective credit management systems to businesses who sell their goods or services on credit account. We supply these companies state-of-the-art, online credit intelligence to help avoid losses. They also suffer from slow-payers with resultant cash flow issues. CPA solves the problem by prompting slow-payers to settle their bills. Over 80% of all accounts are resolved within days and maximum goodwill is preserved.

Who are we looking for?

We have successfully worked with sales agents for thirty eight years, so we understand how to coach and support people to achieve their potential. For the first time, we are offering the best of these agents franchises in recognition that they are the ones with determination and entrepreneurial spirit to achieve even more within their own businesses. We now seek similar individuals as franchisees who are also ebullient, self-motivated and have a can-do attitude! They will have a broad business, fi eld sales, ex-Services or management background.

What you must have:

• Reliable vehicle • Total determination to succeed • Ability to deal at directorship level • Dynamic, proactive and hardworking ethos • Broad business, field sales, ex-Services or management background • Capacity to fund a modest franchise fee

Enquire TODAY to learn more about this profitable and exclusive franchise opportunity! Call Peter Uwins on 020 8846 0000 or email your interest to franchise@cpa.co.uk alternatively visit www.cpa.co.uk/franchise

What you can expect:

All businesses need healthy cash flow. CPA franchisees can turn determination into new clients and high revenue within weeks of starting. There are regional offices and mentors nationwide to support those selected to earn an excellent living. Your long term goal is to build a substantial asset while enjoying an excellent income. • Exclusive territory • Initial marketing campaign • National and regional support • Revenue from automatic repeat business • Comprehensive initial and ongoing training in sales and the marketplace And much more…………

CPA’s headquarters, London

CEUK001 CPA FP Feb16.indd 1

28/01/2016 18:32

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

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Fully sign-written van and mobile showroom

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

For more information call: +45 87244700 or 07769 882775 email mobile.workwear@mascot.dk or visit www.mobileworkwear.com

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03/03/2016 14:54

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 PPP.indd 1

PLAT001 06/10/2015 01/02/2016 11:56 18:26

Tony Bowman, managing director, etyres

What goes around comes around Investing time in networking and giving others a helping hand can pay dividends in the long run

Networking is a vital part of the development of almost all businesses. Those involved in franchising are no different and, if they are members of the bfa, they share a huge advantage. Franchisors regularly meet to discuss franchising issues and, although they share the common goal of recruiting suitable franchisees, this rarely conflicts with the greater benefit of sharing best practice and building their respective brands. They also network with industry professionals, such as banks and specialist franchising lawyers. The bfa holds regular regional forums and specialist seminars, which provide ideal networking opportunities. It also includes a growing number of franchisee members who benefit from the chance to network at regional meetings. The goods and services offered by these businesses are incredibly diverse. It is almost always the case that mutually supportive

arrangements can be established because of the natural affinity that exists between like-minded businesspeople. But you donâ&#x20AC;&#x2122;t have to restrict your mutual support to other franchises; becoming part of a local business network group can also help spread the word about the service you offer. The ultimate aim is that your fellow members become your unpaid marketing team, actively gaining new business for you. We all know that achieving word-ofmouth recommendations is the best way to win new business. Networking with like-minded people will help you achieve this important goal because they will be happy to refer your service to their clients and customers. The key to successful networking is to actively link with individuals who are looking to build relationships based on trust and mutual respect. Donâ&#x20AC;&#x2122;t get sucked into going to meetings just so you can be sold to: instead it is vital to embrace the opportunity to build relationships. But networking doesnâ&#x20AC;&#x2122;t just benefit larger teams. One of the advantages of being in a franchise is that even if you operate as a sole trader, you are not alone: you still have the backing and support of the head office and fellow franchise owners. Networking can help you expand this support group so that you can enjoy the benefit of having a sounding board or someone you can share a problem with. Sometimes when you are running a business it is easy to get bogged down with immediate concerns but it is very important to make time for the important long-term goals too. Networking falls in the latter camp. Forming and maintaining a strong circle of contacts will help you enjoy more opportunities. And remember: what goes around comes around. March 2016 | elitefranchise

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Basilico

The Italian job Basilico is bringing a touch of tradition to the pizza-delivery market

BY ADAM PESCOD

hen it comes to ordering a pizza, people aren’t as spoilt for choice as they might once have been. The likes of Domino’s and Pizza Hut have managed to grab a big slice of the market, becoming consumers’ go-to brands in the process. However, those looking for something a little more authentic will be pleased to hear that Basilico, the wood-fired pizza chain, is embarking on a franchise drive across the UK. Founded in the late 1990s, Basilico has steadily grown from one restaurant on the Fulham Road to a group of 11 outlets across London. It has managed to amass such a strong customer base in the capital by delivering traditional Italian fare to people’s doors. “Every element of our pizzas is Italian,” says Geoff Parsons, managing director of Basilico. “The ingredients are all imported from Italy and they’re sliced and packaged by us.” This extends to the sauce and even the flour used in the crust, which is blended at a flour mill in north-east Italy. “It’s a secret blend of flours,” he adds. “It’s a thin crust but it retains its texture and form very well for a ten or 15-minute delivery.” But it’s not just the ingredients that help give Basilico’s pizzas their authenticity: the company is one of only a handful of pizza-delivery chains in the UK that cooks its pizzas in a traditional wood-fired oven. “It’s at the

elitefranchise | March 2016

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Basilico

you visit our outlets,” says Parsons. “We are fundamentally a delivery business but, in some areas, we are 25% collection or eat-in, so the oven is absolutely fundamental to the brand.” Having proven the model works in London, Parsons believes the brand is now fit for franchising. “We have got to the stage where it’s practical to franchise,” he says. “We’ve got critical mass and the brand is strong enough to expand within London and move out into Greater London.” And with enquiries coming in from as far afield as the East and West Midlands, it’s evident that franchising will be the most effective way for Basilico to increase its presence across the UK. “We strongly believe in working with local schools, providing prizes for tombolas and raffles and getting involved with local sports clubs,” says Parsons. “That’s much better done by somebody who lives in and knows the territory.” Basilico franchisees will also need to be wellfunded and have some experience of running a food business. And Parsons stresses that the latter is more important than the former. “We certainly wouldn’t be looking for somebody with no experience but lots of money,” he says. “It

opposite end of the spectrum to a Pizza Hut or a Domino’s, where the pizzas are made on a metal tray and drop off the end of a conveyor belt,” says Parsons. While it means Basilico might not be able to pump out as many pizzas per minute, it’s a price worth paying for delivering the real deal. “It’s not the cheapest way to run a pizza oven but it gives you a different sort of heat and a more authentic product,” says Parsons. Basilico’s specially trained pizza chefs – or pizzaiolos – also provide a point of difference that helps set the brand apart from its closest competition. “There is a company up in Scotland that has two or three wood-fired outlets but their ovens have a rotating floor, which deskills it,” says Parsons. “Ours are totally traditional in the way that the oven is set up and worked by the pizzaiolos.” Yet prior to Parsons joining the company in 2011, Basilico’s ovens were hidden from the public eye; something that changed when he took the reins. “We expose our pizza ovens now, which means there is some spectacle if

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Basilico

benefits the brand if the franchisee is in some way involved with the operations. I’m not saying they have got to be their own pizza chef but they need to be hands-on to make sure service levels are good, food quality is good and financial disciplines are in place.” In return for their investment, Basilico will support its franchisees in a number of areas, from sending out regular e-shots to designing flyers. A franchisee’s outlets will also be added to Basilico’s web-ordering platform, which now accounts for 65% of the company’s delivery orders. “And that’s growing: I think it will move up to 75%,” says Parsons. “It means that you don’t ever have to get involved with the Just Eats of this world.” It all adds up to a pretty attractive proposition for potential franchisees. “Because it’s a premium product with premium positioning, you’re not going to get sucked into a margin squeeze as happens with a lot of franchises,” says Parsons. With five franchises already in the pipeline, Basilico certainly looks well on course to replicate the success its enjoyed in the Big Smoke. But, as Parson explains, it will only be taking up offers from regions that make sense for the brand. “It won’t work everywhere,” he says. “Our demographic target is somebody who

Our demographic target is somebody who knows about food and doesn’t want to eat a mass market, best-deal product 32

knows about food and doesn’t want to eat a mass market, best-deal product.” That’s why Basilico conducts some thorough research whenever anyone enquires about becoming a franchisee. “If anyone wants to be a franchisee, they give us a postcode for a site and we will run an analysis on 62 different categories of household,” says Parsons. “From that, we will have a pretty good idea as to whether or not the demographic mix is appropriate.” With this in mind, Basilico will be looking to add five or six new sites per year, a strategy that Parsons believes will help sustain the company’s success going forward. “We are not going to say we want to do 15 [per year], which is what happens with some of the bigger franchises,” he says. “Property directors are given a target then it’s a case of ‘make the number and get a bonus’ and if the site doesn’t work it’s somebody else’s problem. That’s not how we think: for us, the most important thing is to get every franchise right.” Further down the line, Basilico might set its sights beyond Blighty but, despite receiving some interest from overseas, Parsons wants to lay some firm foundations on these shores before thinking about other markets. “We have got to concentrate on the next couple of years and make sure that all those new sites are in the right place and are profitable for the franchisees,” he says. “In the end, a profitable franchisee is the best endorsement of the brand.”

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

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

www.jacksonfire.co.uk

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FRANCHISE RESALES

PASSING ON THE TORCH

Whilst new franchise territories are a great fit for trailblazing entrepreneurs, a franchise resale gives experienced businesspeople something to really get their teeth into BY JOSH RUSSELL

elitefranchise | March 2016

FRANCHISE RESALES

n the early days, much of a franchisor’s time and effort goes into opening new territories. However, as a franchisor ages, reselling old territories becomes a valuable tool in its own right. Not only do resales allow franchisees to recoup on everything they have invested but they also ensure that franchisors can bring in experienced businesspeople to build the business to the next level. But first it’s worth considering what draws people to buying a new franchise instead of a resale. One of the things that might attract someone to a new territory is that it effectively offers a blank slate and gives the franchisee the experience of building and growing their own model, albeit with the security offered by a tested model. “With a new franchise you’ve got the opportunity to start from scratch,” says Janet Walmsley, franchise recruitment manager for Oscar Pet Foods, the pet-foods franchise. “You’ve got the opportunity to build the business in the manner that suits you.” Conversely, when a franchisee buys a resale, they’re buying an opportunity where someone has done a lot of grunt work in terms of building up assets and a customer base. “You’re purchasing an already operating business,” says Julie Taylor, managing director of Franchise Resales, the company that assists with the reselling of existing franchises. “Basically you’re buying cashflow, customers, staff, on-the-road vehicles and equipment that’s already been in play.” It also means they’re getting a business opportunity that’s already profitable and is firing on all cylinders from day one. “You’re slotting yourself into a business that’s already up to speed,” she continues. The financials involved in a new franchise compared to a resale can also differ wildly,

with a fresh unit or territory taking considerably longer to offer a return. “From day one in a cold start, you’ve got money going out and nothing coming in,” Taylor says. However, whilst a resale allows a franchisee to buy a thriving business opportunity, it’s worth bearing in mind this comes at a premium, with the incoming franchisee having to fork out both for the franchise fee and a one-time charge to buy out the previous franchisee. “That purchase fee is a sum of money you’ve got to find upfront that you wouldn’t have to with a cold start,” she adds. Another significant difference between new franchises and franchise resales are the kinds of people that are drawn to each opportunity. New franchisees are typically attracted to starting a territory from scratch because it offers the chance to really stamp their mark on the business. From finding premises to building up an effective team, the journey offers the kind of entrepreneurial experience that buying an existing business can’t. “The newcomer is somebody who has got a bit of oomph about them,” says Barry Price, director of Swimtime, the children’s swimming-lesson franchise. “They have got a bit of that startup spirit.” On the other hand, resales tend to need a steady hand at the tiller. “You really do have to hit the ground running,” Taylor says. “You don’t have the luxury of a slow run-in that you might have with other franchises.” Because of this, resales benefit from having a more established business figure at the helm and typically attract individuals with proven commercial credentials. “You want people that have already got proven project management, team-building and leadership skills, as opposed to somebody that will develop their skills as they go along,” she adds.

YOU REALLY DO HAVE TO HIT THE GROUND RUNNING; YOU DON’T HAVE THE LUXURY OF A SLOW RUN-IN Julie Taylor, Franchise Resales

March 2016 | elitefranchise

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

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

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

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

4 5

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

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

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

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

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FRANCHISE RESALES

IT’S VERY IMPORTANT TO TALK ABOUT EXIT STRATEGIES: IT’S NOT SOMETHING THAT CAN BE PUSHED UNDER THE CARPET Janet Walmsley, Oscar Pet Foods

CHANGING LANES Swimming-lesson franchise Swimtime doesn’t have to worry too much about losing franchisees. Since it first began franchising in 2004, the business has grown from 40 to 200 sites across the UK, with many of its franchisees staying on for an average of six or seven years. “We’ve got some franchisees who are into their third agreement,” says Barry Price, the company’s director. However, despite having so many longstanding franchisees, Swimtime knows first-hand the benefits that resales can bring. “At the very start of the business, we wanted to give people a really good chance of making money but we ended up creating territories that were far too big,” Price says. This left these franchisees with more business than they could handle but, fortunately, splitting and reselling parts of territories actually benefitted all involved. “The franchisees are now more concentrated and making more money than they were before, whilst we have a new franchisee that is working in that new territory,” he says. And any subsequent resale has been viewed as a definite positive by Swimtime. “From our point of view, we’re delighted if somebody sells the franchise because it shows the credibility of our model and the business opportunity,” says Price. A resale also offers a franchisee a great return on their investment, offering a valuable exit in recognition of all of their hard work. Price explains that from an initial investment of £7,500 ten years ago, Swimtime franchisees can now be looking at a return of £50,000 to £70,000. “The franchisee will have turned a very modest investment into a nice little earner,” he says.

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However, even an experienced hand can only do so much if the business they’re looking to buy hasn’t been properly prepared for sale. “The big challenge is when people wake up in the morning and think ‘I’ve had enough of this: I think I’ll sell my business’,” says Taylor. Even with the best will in the world, bad habits can creep in over the course of a five-year franchise term; if a franchisee has failed to keep accurate records, prepping the business for sale last minute can become a mammoth task. “All of a sudden they’ve got to clean up their act so it looks like a saleable asset,” she continues. For this reason, it’s vital for both a franchisee and franchisor to have a clear idea of the long-term game plan for a territory. “It’s very important to talk about exit strategies: it’s not something that can be pushed under the carpet,” says Walmsley. Having a full and frank conversation about a potential exit several years ahead of time can help to ensure the resale process is as smooth as possible and causes minimal disruption to the operation involved. “It’s important that you have a plan,” says Walmsley. “That plan can be revised but you need to have some sort of idea as to what you want long term.”

March 2016 | elitefranchise

ADVERTISING FEATURE

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

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

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

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

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

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

elitefranchise | March 2016

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Pitman Training

Top class of the

With a UK network of 60 franchises under its belt, Pitman Training is now taking its popular programmes to new climes BY ADAM PESCOD

here can’t be many franchises with as rich a history as Pitman Training. Its roots can be traced back to 1837 when Sir Isaac Pitman devised the form of shorthand that is still used by secretaries and journalists today. “Our history really permeates everything that we do,” says Andrew Walters, franchise sales director at Pitman Training. “If you ask people of a certain generation, it’s a brand that’s very well known to them.” Over the course of 180 years, the company has grown to become one of the leading providers of office-skills training in the UK, lending support on everything from IT to bookkeeping. As well as delivering courses and seminars from one of its many training centres, it offers opportunities for distance and blended learning so that people can study in their own time. “We are taking the heart of what the business was when it was created and making sure that it’s relevant to what people really need,” says Walters. Pitman is also an established player in the British franchising sector with a network spanning 60 franchises. “Education is actually quite a nice thing from a franchise point of view because the one thing you really want is consistency of quality,” says Walters. “By its inherent nature, the franchise model allows us to replicate things.”

elitefranchise | March 2016

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Pitman Training

Suffice to say, Walters believes the quality of Pitman’s training helps set it apart. “We are in a sector where there’s an awful lot of very good competitors but it is also a market with a quite a lot of poor training providers,” he says. “We want to offer something quality that actually gets people back into work or helps them find a new career.” This means Pitman’s franchisees are cut from a slightly different cloth to those who have invested in a more traditional franchise. “There are a lot of really good franchises that you can make a lot of money from, whereas with Pitman our people really have their heart set on helping people improve their lives,” he adds. All of this set Pitman up nicely for its international expansion, which Walters has been leading for the past five years. Upon joining the company in 2011, he saw a brand that was well-equipped to replicate its UK success overseas. “I felt we were sat on something that could really be quite special because British education has such an amazing reputation overseas,” he says. “It is probably one of the UK’s best exports.” Technically, it’s not Pitman’s first foray into international markets. As the British Empire expanded throughout the 19th century, Pitman’s shorthand went with it. This meant the company didn’t have to start from scratch when it came to rolling out its other training products. “The Pitman brand is still known so widely across the Commonwealth so I didn’t really feel that we needed to go in and hit new markets,” says Walters. “It was more about reintroducing

You can’t just take your UK business model, jam it in there and assume that it’s going to work perfectly

Andrew Walters franchise sales director, Pitman Training

ourselves to those markets.” Not only has Pitman secured partners in Mauritius and Nigeria but its also taking its first steps into the Indian and Malaysian markets. And with other countries including the Cayman Islands and Palestine under its belt, it’s fair to say Pitman is targeting countries that other franchises wouldn’t tend to look at straight away. “The most demand we get is from the developing world, which is desperate for education and desperate for British education because it’s still perceived to be the highest quality,” says Walters. “Most of the developed markets are ones where education and training is something they’re very good at and where there are already a lot of established businesses.” Of course, the benefit to this approach is that Pitman can get first mover advantage in a number of countries. Walters uses the example of Palestine, where Pitman introduced its English language training back in 2014. “It is now the biggest market for us outside of the UK,” he says. “We have the potential to March 2016 | elitefranchise

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Pitman Training

I felt we were sat on something that could really be quite special because British education has such an amazing reputation

work with every university, offering our English language course to tens of thousands of students. It’s a market where nobody has come in and done that before, which means we can go in and be a market leader quite quickly.” However, Pitman’s success in new markets hasn’t come as a result of duplicating its UK model. Like any franchise taking its first steps overseas, it has had to slightly adapt its offering when encountering new cultures. “You can’t just take your UK business model, jam it in there and assume that it’s going to work perfectly,” says Walters. “There has to be that flexibility and willingness to look at the market, understand it and refine it while maintaining the heart of what you’ve already got.” One region where Pitman has had to tweak its model is the Middle East, where people have different preferences when it comes to learning. “With the vast majority of our learning in UK, the student takes responsibility for it themselves,” he says. “In the Middle East, they’re 42

more used to a teacher-based model where there’s someone at the front telling them what to do. So in some ways, we have had to adapt our approach in those markets to allow for the fact that the learning experience is slightly different.” This flexibility also extends to the way that Pitman manages its international development. While it has sold a master licence for Ireland – where there are now 14 franchises – other countries require an alternative approach. “We are looking to expand into Malaysia this year and, rather than a master franchise model, we are probably looking at a direct licensing model,” says Walters. “This means we will be providing the service, systems and support to universities and colleges rather than a local franchisee.” Pitman’s international footprint is still quite small but its certainly set itself on the right course. “There are lots of challenges, there is lots of potential and in many ways we are early on in our journey,” says Walters. “We have seen some success but there’s a massive amount more that we can do.” The company is looking to launch 17 franchises in Russia over the next three years and 75 franchises in India within the space of five years. Beyond that, the focus is on the big English-speaking markets of Australia, Canada and the USA. However, Walters stresses that Pitman won’t be entering those markets until it’s absolutely ready to do so. “I almost want us to iron out the kinks, learn the model and refine it for each market before we get to the ones that we really want,” he says. “You don’t want to cut yourself out of a big market early on.” Either way, Walters has big hopes for Pitman going forward. “I am very hopeful about where we will be in five years’ time,” he concludes. “I think we will have a very different business and a very exciting business.”

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ADVERTISING FEATURE

f you are tired of making money for someone else and want to start your own business working from home, then it’s worth putting serious consideration into starting your own estate and letting agency. You will meet lots of new people, expand your skillset and have a big impact on people’s everyday lives. The multi-award-winning HomeXperts model enables you to deliver a personal agency service whilst working from home or a small serviced office. You will build up and establish a consumer-focused estate and letting agency with the approach of not just about selling or letting houses but really helping people to move. If you are passionate about property and delivering an exceptional level of customer service, then HomeXperts could be just right for you. HomeXperts retained the Gold award for The Sunday Times’ Best Estate Agency Franchise in 2015, after being a winner in the category in 2014 and 2013. The company was also delighted to be a winner at The Sunday Times’ Best Lettings Franchise Awards in 2014. And its innovative model was awarded Best Use of Technology to Improve your Business at the West Midlands Chamber Awards in 2015, reaching the National Chamber Awards as one of eight national finalists in the category. These awards recognise Home Xperts’ continued investment into its systems, software, processes and technology, in particular the stateof-the-art HomeXperts Franchisee Hub. The cloud-based Hub provides you with instant access to everything you need to run a successful and profitable estate and letting agency. Meanwhile, the Franchise Opener system provides a step-by-step guide to all the tasks you need to complete in order to launch your business. Many of HomeXperts’ franchisees had little to no experience before joining, yet their top-earning franchisees join the HomeXperts ‘Altitude Club’ by earning more than £25,000 in a month in invoiced commissions. By working hard and following the proven franchise model,

STRAIGHT FROM THE XPERTS

Leap into action with a successful and profitable career working for yourself

you can secure your financial future by establishing a profitable business with a great work-life balance. A two-week intensive training academy will train you to National Federation of Property Professional (NFoPP) standards, leading to accreditation by the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA). You will receive 20 weeks of ongoing mentoring and support to guide you through your business launch. Your comprehensive training and support package also includes quarterly franchise meetings, monthly business reviews and twice-weekly webinars. “If you are a self-determined, hardworking individual who goes the extra mile to impress your clients, then HomeXperts wants to speak to you,” says Sussanne Chambers, founder and managing director of HomeXperts. “Whether you are looking for a change of career or tired of working for someone else, HomeXperts can help you to build up and establish a prosperous and exciting business working for yourself.”

With franchises available from £9,995 plus VAT, you could be the next person to secure your future with the award-winning, established and growing franchise model. You could be eligible for up to 100% funding through the governmentfunded back-to-work scheme, of which HomeXperts is the only estate and letting agency partner. HomeXperts has established key relationships with all the major high street banks, making you eligible for up to 70% funding of the initial franchise fee and the first year’s running costs. Interested in a HomeXperts franchise opportunity? Join HomeXperts at The British & International Franchise Exhibition at Olympia, London on March 11 and 12 2016, where Sussanne Chambers will be a keynote speaker. Find out 100% of the information by booking your discovery meeting at www.home-xperts.co.uk. For a quick chat, call Josh Birbeck, HomeXperts’ franchise recruitment manager on 01905 678853 who will gladly answer all of your initial questions. March 2016 | elitefranchise

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Branch out on your own with the support of TaxAssist Accountants

take control of your career

build an asset for your future

grow your business

our Support Centre averages 1 person per 6 franchisees

over 200 franchised areas

marketing and lead generation

established business model

benefit from the support of a successful franchisor

be your own boss

119 franchisees on 10 year agreements

ongoing training & support

expanding worldwide 270+ branches accross UK

Key UK Franchise Industry Stats

Source: BFA NatWest Franchise Survey 2015

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

ÂŁ15.1bn

estimated turnover of the UK franchise sector

901

active franchise systems in the UK

97%

of franchisees in the UK franchise industry report proďŹ tability

Call us today for a confidential chat 0800 0188 297 or visit us at www.taxassistfranchise.co.uk

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ADVERTISING FEATURE

TaxAssist Accountants TaxAssist Accountants is an innovative and award winning franchise servicing small businesses and the self-employed

ranchisees operate from welcoming and modern shopfront premises offering year-end accounts, tax returns, bookkeeping, VAT returns, payroll and cash flow projections. After consistently winning awards in both the franchising and accountancy sectors, TaxAssist has grown to become the 24th largest network of accountants in the UK servicing over 58,000 clients from over 245 shops and offices. Central London based franchisee Vince Dalaimo previously worked for the Royal Bank of Canada, Deutsche Bank and JP Morgan. He joined TaxAssist in 2003, as he could see the value in the TaxAssist brand name, the high visibility of shop-front premises and the support. “I was a very small cog in a very big wheel and thought there must be more to life,” explained Vince.

“When I first investigated franchising, I was surprised to find accountancy as an option. TaxAssist has given me the confidence to set up my own practice and provided me with the support and training to grow my business. The best parts are the support given by the franchisor. Also, there is an amazing relationship between franchisees, where you get to know your neighbouring franchisees and quite often meet, share experiences or provide help and support as and when required. Although I run a small business, I definitely feel I’m part of a larger group and have the resources of a national network.” “The franchise allows me to grow my business while the franchisor provides me with the tools to sign up new clients. For me to replicate the same marketing effort would both be time consuming and cost a lot of money. I have found that clients have really taken to the concept of a ‘drop-in’ shop, where they can get all their tax returns, payroll and bookkeeping needs taken care of as they walk into work or at breaks and lunchtimes. It means they can concentrate on running their business and increasing their own income and profitability. I would definitely recommend the franchise.” Each franchisee operates in an exclusive territory and there are still many territories and resale opportunities available across the United Kingdom. Please visit the TaxAssist website www. taxassistfranchise.co.uk or call 0800 0188297 for further information. March 2016 | elitefranchise

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

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

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

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

Commercial Cleaning with a Difference JANP001

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Measuring profit

profits?

A profitable business is a healthy business but how many franchisees can say with certainty that they’re in profit? BY Alex Littner, managing director of Boost Capital

usiness has never felt better – orders are pouring in and customers can’t get enough of your offer. But are you actually making money? A franchise may be busy but that doesn’t necessarily mean it’s profitable. Many franchise owners don’t precisely know when their operation goes from shelling out cash to making a profit or if costs exceed the money coming in. So how can you be confident that you’re in the black and things really are as good as they seem? Pinpointing profit About 97% of UK franchise-owned outlets were profitable in 2015, according to the latest figures from the bfa. Or were they? It’s a stunning number but it is self-reported – in other words, franchisees stated whether they believe their operation is profitable or not. The truth is an alarming number of bosses rely on their gut instincts when it comes to judging the health of their enterprise. In fact, according to past government research, as many as one in two people running an SME doesn’t know their business’s breakeven point, which is when its revenue equals its outgoings. Put simply, it’s the figure that indicates how many sales need to be made in order to turn a profit. In no way do I wish to cast doubt on the success of franchises. Famously, they March 2016 | elitefranchise

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measuring profit

Financially savvy franchisees will keep their breakeven point as low as possible in order to maximise their profit potential are more likely to be profitable than traditional startups because they are following a tried and tested business concept. Established franchises also tend to receive more support from conventional lenders – at least before the economic downturn – than that offered to standalone small companies. Finally, franchises have the support of their franchisor, from marketing and advertising to training and problem-solving. But managing the financial nuts and bolts of an outlet still typically comes down to the individual franchisee. And the reality is some people are better at crunching numbers than others. The dangers of ignorance If the person directly in control of the company finances doesn’t know when the operation is breaking even, accurate business planning becomes a near impossibility. Not only can it affect pricing policy, it will also have some bearing on how much a business might produce of a given item, the amount of stock it needs to carry or what services it offers. Moreover, it can cast light on individual expenses – such as the cost of marketing or materials used – which may be disproportionately high. This kind of knowledge really is power. Financially savvy franchisees will keep their breakeven point as low as possible in order to maximise their profit potential. This requires

monitoring key figures as often as weekly or monthly, then making changes where necessary to keep profits healthy. But it is not just about giving your franchise the best chance of success; it is also about managing risk. If a business isn’t regularly checking its sales, margins, overheads and net profit, it could be stumbling towards failure, oblivious that disaster is about to strike. According to insolvency experts, a good proportion of smaller business collapses are caused by owners not having sufficient command of their operation’s basic numbers. While franchises are less prone to business failure than independent SMEs – the latest bfa survey suggests as little as 0.2% of franchises changed hands in 2015 due to commercial failure – the most successful franchisees will still always be those that have a handle on their core financials. Calculating your breakeven point So what is the magic formula that franchise owners should have at their fingertips? To undertake a breakeven analysis, you have to fully understand three sets of numbers. The first of these is a company’s level of sales, which by extension will give its gross profit figure. The second and third are its fixed costs and variable costs. Sales revenue equates to the amount sold and at what price; variable costs could include the production of goods – for example, if raw materials went up or down in value; and fixed costs can include things such as rent, franchise fees, business rates, utilities, staff wages and interest charges on any loans. It is sensible to ask for the help of an accountant to provide a precise breakeven analysis for your franchise March 2016 | elitefranchise

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Proven franchise opportunity with one of the world’s leading cleaning companies: • 35 years’ cleaning expertise • Growing market • Full support and training • Repeat business • Professional support from a franchisor with over 55 years’ experience • Employ staff you trust • Dedicated marketing assistance

INVESTMENT FROM £19,995

“The training taught us everything we needed to know about running a Merry Maids franchise, so we knew exactly what to expect when starting.”

“We both hold strengths in different areas and we are able to support each other in all situations we come across.”

Mandy Ascroft and Trish Malley Merry Maids of Wigan

Anna and Kevin Riley Merry Maids of Southampton

“The visit from marketing really inspired me to push my business further and actually helped me achieve results beyond my expectations.”

“I am able to be in control of my own business and I still have the support of head office and the rest of the network to rely on.”

Ian Kemp Merry Maids of The Chilterns

Nicky Morris Merry Maids of Fylde, Blackpool and Preston

T: 0116 275 9005 E: franchisesales@servicemaster.co.uk W: www.merrymaidsfranchise.co.uk/elite EliteFranchise0216.indd 1

SERV003

FULL MEMBER

/MerryMaidsUK

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measuring profit

unit but bosses can attempt a rough reckoning themselves. The Association of Chartered Certified Accountants gives the example of a business that has a gross margin of 25%. Its sales must be four times as large as its fixed costs just to break even. But, past that point, the enterprise has achieved profit. Forewarned is forearmed Once a franchise owner has mastered their breakeven calculation, it should be able to maintain more accurate inventory levels, raise the prices of goods and services – if the franchisor allows it – and keep operational costs under control. But these regular assessments of company finances will also serve as an early warning system, flagging up when and if the business is losing money. If any shortfalls come to light before they pose a real threat to the day-to-day operation of a franchise outlet, it’s possible for the owner to deal with the situation in a timely manner. This may mean cuttings costs, chasing outstanding invoices or looking at the options available for bridging finance to keep the cash flowing while a long-term solution is found. To maintain an accurate picture at all times, franchise owners need to put systems in place to check sales, orders, overheads and profit then recalculate these numbers regularly to get an up-to-date idea of the enterprise’s health. Monitoring such figures on an ongoing basis also means a business owner has records against which he or she can measure the franchise’s success, getting a sense of its overall performance. If the official data is to be believed, chances are your franchise is likely to be in profit but it’s sensible to be sure. Undertaking regular breakeven analysis is not only good business practice, it will also help a franchise that’s seeking funding. Any lender wants to see that a business is in command of its finances and knows what is flowing in and out of its coffers. Profit is the holy grail for any business so make sure that your franchise has the greatest chance of achieving it – and maximising it.

An alarming number of bosses rely on their gut instincts when it comes to judging the health of their enterprise

March 2016 | elitefranchise

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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 BestOf.indd 1

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Wanting to be your own boss? It’s a great ambition 3

What is the initial investment and are there any additional costs?

Franchising certainly offers a great risk averse route to starting your own business. 9 in 10 franchises report profitability compared to 1 in 2 new independent businesses that go bust within the first two years.*

What is it and do you need working capital? You need to make sure that you can survive so what’s really important is how much you need to be able to survive whilst building the business.

There are risks in any business decision, so you will still need to address certain questions in order to decide if franchising is right for YOU.

Questions four involves asking to speak/meet with their franchisees who they deem to be some of their most established and successful – due diligence is key.

Michelle Downey, Head of thebestof says: “For me these are important in the early stages of your research in finding the perfect franchise. Questions are free and franchisors love to help with the answers, I know I do!

The final question should be to ask them what their perfect franchisee looks like – you can then see if that match is there for them and importantly you. At thebestof we do not require that you have a marketing background, for instance, we look for transferable skills, great communication skills and people with a real passion for relationship building.

These top 5 questions will help you choose the right franchise for you

How long has the franchise been trading and what are the future plans?

The first question should be about how long the franchise has been established, this tells you about their history and the success behind their model. At thebestof we are currently celebrating our 10th year, so we have a proven track record.

What training and ongoing support will be available?

The second question should be about the support and training they offer to you in the growth of your franchise business. At thebestof we pride ourselves on our ‘franchisee first’ attitude, training and our dedicated support team – last year we held 857 training events for our franchisees . We recently received a 5 star franchise satisfaction award.

Can you speak to existing franchisees about their experience?

What is the recruitment process?

Of course there will be many more questions that you will want to get answered before proceeding but I would recommend that these should be your top 5. Franchising isn’t for everyone, it makes sense to conduct your own due diligence to see whether you can achieve the lifestyle that you desire. Get it right and it can be the perfect opportunity to bring your dreams to life. If you are looking for a flexible and rewarding career where you can be your own boss with the support of a 5 star team then we would love to hear from you. Do get in touch if you want to find out more about thebestof franchising opportunity, or have questions about franchising.”

*Source: BFA 2010

Your next move?

Visit www.thebestof.co.uk now or call 0121 765 5556 to book on to our information day BestOf.indd 2

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HOT OFF THE PRESS Mastering PR is an essential skill for anyone looking to make a splash in the world of franchising BY josh russell

hilst PR can be tricky for any organisation, it’s fair to say there is a greater level of complexity for franchises when it comes to getting their story out. “As a franchise, you have a lot of plates to spin,” says JeanPhilippe Glaskie, managing director of Peppermint Soda, the PR agency. “You have your own profile to think about but then you’ve got the added worry of ensuring your franchisees are happy.” One of the most fundamental PR skills required by any franchise is identifying the kinds of messages that are likely to make the press sit up and take notice. Yet many businesses still stumble at this first hurdle. “Occasionally we’ll get a company saying to us ‘we’ve got a new website and we want to do a press release about it’,” says Chaz Brooks, co-founder and creative director of Chaz Brooks Communications, the PR and marketing agency. Whilst this may not be the most exciting news for a journalist, by drilling down a layer franchises can often identify a much richer vein

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for their PR activities. “For example, what’s often behind a new website is that the company has got a new strategy, so you could do a very good announcement about its change of direction,” he says. Another common error that PR newcomers tend to make is assuming that its purpose is to flog their products and services. “At the end of the day, a journalist’s objective is to provide interesting, newsworthy content for their readership,” Glaskie says. “The last thing that they want is a company to start selling down the phone to them.” Because of this, rather than a franchise pitching an article singing the praises of its service, it’s important they offer up stories that will actually resonate with a publication’s audience. Whilst this may seem a back-tofront approach for those wanting to promote their franchise, it’s important to understand that creating an authentic connection with the public is one of the key strengths of PR. “That’s what PR does,” says Julia Bickerton, director of Calvin Marketing, the PR and marketing agency. “It tells a story and allows people to understand more about you than they can get from traditional marketing.” She draws on a recent story about children’s swimming franchise Puddle Ducks raising £55,275 for local charities around the UK with a pyjama party swimming fundraiser. “If somebody is doing something like a charitable event, it speaks volumes about their business,” she explains. “It’s humanising and people empathise with that.” But even if a franchise nails the perfect strategy for securing column inches in one section of the press, this doesn’t mean it can afford to just rest on its laurels. “One of the mistakes a lot of companies make is that they only try one line of attack and then they keep using the same approach time and time again,” Glaskie says. Instead a franchise needs to develop a

PR tells a story and allows people to understand more about you than they can get from traditional marketing Julia Bickerton, Calvin Marketing

multichannel strategy that takes in everything from the local press to national partnerships. “At the end of the day, it’s all about variety,” he adds. “It’s about attacking on different fronts and making sure that you leave no stone unturned in raising your profile.” One channel that franchises certainly can’t afford to ignore is social media. “You may have sent a press release across to a newspaper or a magazine but equally you want to get that story out on social networks,” says Bickerton. Just as you would when prepping PR for the traditional media, it’s important that franchises using sites such as Facebook or Twitter consider who their audience is and tailor their message accordingly. “The nice thing about working across all of these channels is you get this joined-up thinking,” she says. “So wherever anybody goes, they’ll see your story.” Whilst it’s already been established that PR can’t simply be treated as a marketing exercise, it is important that there’s a degree of cross-pollination between the two disciplines. “Your PR isn’t your advertising but you

March 2016 | elitefranchise

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Fosse Healthcare Franchising Healthcare Staffing Support Agency Are you ready to run a fast-paced and exciting franchise? The Opportunity Fosse Healthcare have a number of opportunities throughout the UK for ambitious, salesoriented individuals, to run their own business. If you’d like to throw off the shackles of employment and be your own boss, the Fosse Healthcare franchise might be right up your street. Our Fosse Healthcare franchised businesses provide specialist temporary staffing support services to care homes and hospices. We have a proven business model that is providing very generous incomes for our best franchisees. Our business systems, training and support will give you everything you need to learn how to operate a successful business.

Six figure personal income Growing marketplace Proven business model White collar opportunity Be your own boss Management franchise

Testimonial

“I started my Fosse Healthcare franchise in October 2013. We have grown a lot faster than we expected achieving annual sales of £880k in our second year. We’re on track for sales of £1.3million for year three and I now enjoy a very healthy six figure income. I’m so delighted with my Fosse Healthcare franchise that I’ve just bought another one!” Ken Rudge - Fosse Healthcare (Devon) December 2015

To find out more visit: www.fossefranchise.co.uk Call us on: 0116 402 7199 Email: info@fossefranchise.co.uk FOSS001 Fosse FP Feb 2016.indd 1

29/01/2016 11:33

It’s about attacking on different fronts and making sure that you leave no stone unturned in raising your profile Jean-Philippe Glaskie, Peppermint Soda

must be constantly aware of the need to get across the same message and make people understand what you’re all about,” Bickerton says. Ultimately, having a brand identity that resonates throughout both your PR and marketing can ensure the public gets a consistent message about a franchise whether they’re reading an ad or an article. “Whenever they see you, they can connect that story with that advert,” she says. There is an additional wrinkle facing franchises trying to build out their PR activity. In contrast to traditional businesses, which can easily manage PR from the top down, franchises have to manage their PR across a network of autonomous stakeholders. “As a franchised business, you’ve actually got a little bit more to think about than the average business; it has different dimensions,” Glaskie says. “Because you’re dealing with different parties and expectations, things need to be managed very carefully.” This means that a major consideration is keeping a consistent tone of voice across the whole of the network. “As a

franchisor, you’ve got to maximise the potential of the media but minimise the risk of a franchisee diluting or, even worse, distorting your message,” says Brooks. “The best way to do that is by offering them a PR handbook.” Providing a short guide that outlines the best way to draft a press release or manage their Twitter account can help franchisees deliver PR that’s representative of the overarching brand. And, as a franchise grows, it will inevitably need to grow the support it offers. “As they scale, they have to grow their resources,” Brooks says. “Whether it’s increasing the in-house team or increasing the size of the agency, it’s just a matter of course.” Bringing additional help on board can give franchisees access to the skills and confidence they need to deliver first-rate PR off their own back, as well as offering more peace of mind for the franchisor. “If you offer this facility, that’s also helping the franchisee to toe the line, keeping them on message and promoting the business,” he says. “It’s a win-win situation.”

March 2016 | elitefranchise

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Y E A R S Established in 1996

IN FRANCHISING

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

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

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

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

EliteFranchise0316.indd 1 Franchise Recruitment - Business Franchise - Feb 2016 (20 Years A4 - awards entry).indd 1

0 800 0 15 20 3 0

ating 20 years in fran chising & business!

02/03/2016 14:39 19/02/2016 13:57:19

ADVERTISING FEATURE

Still going strong

gas-elec’s first franchisee Dennis Healy is still going strong after 20 years

ne evening back in 1996, Dennis Healy was nursing a pint in his local and got chatting to a former director of gaselec, the nation’s premier gas and electrical inspection company. Dennis had recently been made redundant from Southern Electricity where he had worked for 20 years. The director said, in that case, maybe Dennis should meet gas-elec’s managing director John Davidson. There might be an opening for him at the company. The meeting took place and John was impressed: Dennis was definitely gas-elec material. But, in order to join gas-elec the electrical engineer should add another string to his bow and qualify as a gas engineer. Having both qualifications would make him perfect for the company, whose founding concept was a testing and inspection service for both gas and electricity, carried out by one engineer in a single visit, giving one report – saving clients landlords, tenants and homeowners time, inconvenience and money. Back then, the idea of a combined safety inspection was nothing short of revolutionary – so revolutionary, in fact, after its first year in business, the company still didn’t have a single competitor. At which point, John had a brainwave: he decided to franchise his thriving business. As he puts it: “getting people to directly invest in their own future, is a great way to grow a business further still. “We split the UK into different regions to make room for 20 management franchisees to do all the sales and marketing for that region. Then each area would have a tier of safety inspection franchisees, each working in their prime area of

responsibility, defined by postcode area.” he recalls. “We then invested heavily in putting it all together. We were a couple of years out of recession and many people told me I was crazy – who, they asked, would invest in the venture when the country was on its knees?” Dennis liked working for gas-elec and through his work had proved the franchise worked, which actually helped gas-elec’s application for bfa membership. Being self-employed without having to find his work was, highly appealing to Dennis. “The company finds all the work. The regional franchisees book and coordinate work, as well as doing the sales and marketing for their safety inspection franchisees. The first job is usually at 8am, I’m generally home at 4.30pm and I enter the details of the day’s work on my computer and submit it to the company. There’s no selling and no invoice chasing either: one of the biggest headaches for those who are selfemployed is administration and bookkeeping. Which is why gas-elec devised its bespoke bureau facility which, on the franchisees’ behalf, collects payment, performs credit control and sets credits limits for their

clients. It then pays franchisees twice a month upon receipts. “We came up with the idea 11 years ago after we realised that the amount of time regional offices were spending on admin and invoicing, was leading to a direct fall in sales,” explains John. “On average, it saves our franchisees around 17 hours a month.” This has enabled the 53-year-old to comfortably look after his very large family – seven now grown-up children and a wife. These days, almost all of Dennis’s work is in and around Berkshire, the SL postcodes are his prime area of responsibility. Sometimes he gets several days’ work at the same property, which cuts down on driving. A good proportion engineers earn more than £60,000 a year and gaselec has provided services to over 1,000,000 customers. The majority of his workload comprises gas and electrical inspections, boiler repairs and electrical remedial work for letting agents and private landlords in the rapidly growing lettings industry. For the first time in modern history, more people privately rent their home. And by 2026 half of all householders in the UK will be living in private rented accommodation: gas-elec’s core market. The company’s workload is also determined by changing legislation. Dennis, for example, recently learnt how to conduct risk assessments for Legionnaires’ disease, which landlords are now legally obliged to carry out in their tenants’ homes. He has also been trained to fit and service smoke and carbon monoxide alarms. The company can also offer competitive commercial tariffs for businesses, issue energy performance certificates and install energy-saving systems including LED lighting. Dennis’s fourth franchise agreement expires in three years’ time. If he is “blessed with continuing good health”, gas-elec’s first franchisee has every intention of taking out a fifth. “It all means a lot and if I had my time over, I would certainly do it all again.” March 2016 | elitefranchise

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02/03/2016 14:41

Diversity

Diversity Matters Having a diverse workforce isn’t just about equal opportunities. In fact, employing people of all races, ages and backgrounds can breathe new life into a franchise BY JON CARD

iversity in the workplace is a laudable aim that receives much lip service from business leaders. However, in reality, it’s an area where many fail to make progress. There are various explanations for this but ultimately it must be admitted that the UK simply isn’t as meritocratic as most would want it to be. The franchise industry cannot be fully exempted from this critique. However, it does appear that franchises – reliant as they are on processes, criteria and best practice – are significantly more successful in creating diverse workforces than other businesses. According to the bfa’s most recent statistics on diversity, 81% of franchisees describe themselves 60

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as white British, which is roughly in line with the general population. The statistics go on to show that only 70% of newer franchisees were white British, suggesting the industry is embracing racial diversity. However, the sector still appears to have some issues attracting women as 77% of franchisees are male. Cathryn Hayes, head of business support for the bfa, says the industry needs to do more to promote the success stories of women in franchising. “There is still more to do to ensure that the sector fully reflects the diversity of the UK,” she says. “For instance, the 2015 bfa NatWest survey showed that the number of female-owned franchises is only 23%.”

elitefranchise | March 2016

02/03/2016 15:21

diversity

Employers whose workforces do not reflect the customers and communities they serve risk losing out on the best talent Rachael Saunders, Business in the Community

CUSTOMERS A diverse workforce tends to bring a variety of perspectives and outlooks, enabling businesses to think more clearly about the people they are serving and fine-tune their offerings accordingly. Rachael Saunders, director of Business in the Community, which promotes ethical practices in the workplace, says the UK is projected to become increasingly racially diverse. She believes it’s time for all employers to rethink their hiring practices as those that fail to recruit from a wide pool of backgrounds are less likely to be successful than those that do. “Employers whose workforces do not reflect the customers and communities they serve risk losing out on the best talent and the benefits they can bring to a business,” she says. Saunders points to research from business consultancy McKinsey & Company that shows organisations scoring well for gender and ethnic diversity were more likely to outperform those that did not. She says that too many businesses are overlooking the benefit of employing older staff and the UK’s economy is suffering as a result. “Business in the Community’s own research found that older workers who had been pushed out [of work] could contribute up to £88bn annually to the UK economy,” she says. To make their recruitment process reflective of society, franchises need to put a range of procedures in place. Saunders says the best approach is to measure diversity in the organisation and then set targets. “To ensure their recruitment processes are fair and open to all, we would encourage all employers to set and publish recruitment targets for diversity and hold senior

leaders accountable for achieving these targets,” she says. “External recruitment agencies should be made aware of them too.” Problems in the hiring process can appear at any stage and franchises aiming to get a crystal clear view of recruitment need to take data from each step of the process, Saunders suggests. “Employers should also measure and monitor recruitment of women, ethnic minorities and older workers throughout each stage of the process,” she says. “This data can then be used to identify gaps and barriers in the recruitment process and ensure it is accessible to everyone.” In addition, franchises should train staff on the subject of unconscious bias as part of their usual training procedures. “Staff training on issues such as unconscious bias and inclusive management can help to reduce groupthink, which may impact recruitment and progression processes when people unconsciously select those who look, think and act like them,” says Saunders. Employers often complain that they struggle to get a broad mix of candidates and can only recruit those that apply. However, franchisors aiming to boost diversity should consider how jobs are advertised in their networks and realise that different channels appeal to different groups. “Employers should ensure they use a wide range of recruitment channels in order to reach the widest possible talent pool,” says Saunders. “For example, younger people may prefer to use social media channels to find out about vacancies, whilst older people may stick to tradition and look at newspaper advertisements.” March 2016 | elitefranchise

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02/03/2016 15:21

Diversity

Best practice Perhaps one of the reasons the franchising industry is more diverse than the wider business sector is that it has such stringent criteria and processes in place. For many in the franchise industry, diversity is a byproduct of a meritocratic approach to business. Martin Bunney, head of franchise recruitment at Belvoir, the lettings and estate agency franchise, says a franchise that is not diverse is probably not recruiting the best people. “In a way I would advise that any business focuses on the best outcomes,” he says. “If this does not result in diversity then an opportunity has likely been missed. Our portfolio certainly benefits tremendously from all walks of life.” Figures released from Belvoir to Elite Franchise show that about 14% of its franchisees are from different ethnicities, with some of their white franchisees coming from countries other than the UK. Approximately 29% of Belvoir’s franchisees are women, a higher number than the franchising industry average. Bunney says its staff recruitment and training programmes are also designed to avoid any discrimination. “Our primary aim is to ensure we have a robust business plan that’s supported by the right people operating a franchise,” he says. “At no stage do we discriminate against ethnicity, gender, race or religion. If you met our owners it would be patently obvious that this is the case.”

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Some industries benefit from diversity, whereas others simply demand it. The fashion and beauty industry is one such industry, suggests Andy Phouli, chairman of Rush Hair and Beauty, the hairdressing franchise. “Hairdressing is a very diverse industry as a whole,” he says. “Hairdressers thrive on interacting with colleagues, peers and clients from all walks of life.” Rush promotes its business across B2B channels and social media as it expects this to help it reach a wide audience and therefore attract a diverse response. “The majority of our advertising and promotion focuses on industry B2B publications, which we know from experience reach a wide audience,” says Phouli. “Our other main channel of promotion comes from social media, which is all-encompassing.” The company also has a robust equal opportunities policy and Phouli says employees are encouraged to report incidents if they feel it has fallen short. Nevertheless, he stresses the recruitment of franchisees is based on the ability to do the job and nothing else. “The nature of our industry means that we haven’t faced any diversity issues in franchising,” he explains. “Our franchisees are selected on their ability to run a successful business. If they meet the requirements, show strong leadership and customer care skills, that is what matters to us.”

There is still more to do to ensure that the sector fully reflects the diversity of the UK Cathryn Hayes, bfa

elitefranchise | March 2016

01/03/2016 17:44

Join the UKâ&#x20AC;&#x2122;s Fastest Growing Swim School for Babies, Toddlers and Children Are you... - looking for a flexible business opportunity that can fit in with your lifestyle? - ambitious and enthusiastic with a drive to succeed? - enjoying working with babies and children (and people in general)? A Mini Swimming franchise might be just right for you. We are a swim school running engaging and sociable classes for babies (from 6 weeks old), toddlers and young children (up to 10 years old) and are looking to expand our franchise network UK-wide. Our flexible franchise model offers a low investment level and has been backed by several high street lenders. As a Mini Swimming franchisee you benefit from: - Joining our established and trusted brand. - Tapping into our proven business model. - Receiving hands-on support from us at all times. - Being your own boss and loving it. - A great work-life balance. To find out more and to receive a full prospectus, please contact us - we would love to hear from you!

01376 340 310 franchise@miniswimming.co.uk miniswimming.co.uk/franchise

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28/01/2016 18:31

going global

Tech on the world Expanding overseas is always exciting but it brings a whole host of new challenges for a franchise. Thankfully, there’s plenty of tech to give you a helping hand BY JON CARD

ven for an established business, launching a franchise in a new territory can be a daunting prospect. A move abroad is a step outside of a company’s comfort zone; it’s a decision that can entail dealing with new languages, new laws, business practices, time zones and physical distances. However, franchises are utilising technology in ways that can help them overcome these obstacles. “It’s incredibly difficult to imagine how we would have managed this business 20 years ago,” says Frank Stanschus, chief operating officer of Little Kickers, the children’s football franchise. “We completely rely on technology to stay in touch and work with our franchisees.” Little Kickers employs 1,500 people across a network of 240 franchisees in 18 countries and its football classes are attended by 40,000 children every week. The company has come a long way since it was founded in 2002 yet Stanschus still refers to it as a

“small organisation”, explaining that technology is enabling it to do things that “only big corporates” could have done 20 years ago. Close communication Improved communications are one of the main advantages of digital, especially for franchisors that need to contact and offer regular guidance to franchisees. Little Kickers cuts down on the cost of international phones call by using Voice Over IP (VoIP). “We use Skype for all of our verbal communications; it allows us to stay in touch with all of our franchisees on a regular basis,” says Stanschus. “It also allows us to create a very informal way of working with each other, which makes the company much more intimate than our international presence would suggest.” The company also used cloud-based technology to create an intranet system for shared documents and utilises Google Apps, which helps

pool knowledge and experience. “We use Google Apps for Business for all of our operating manual materials, as well as our company intranet,” he says. “All 240 franchisees are connected through this set of applications and it gives us a tremendous wealth of shared experiences.” Stanschus says interaction is key, adding that it’s important for the whole company to feel and act like a single unit. He also points out that running your own business can sometimes be a lonely affair and franchises should try to mitigate

We completely rely on technology to stay in touch and work with our franchisees Frank Stanschus, Little Kickers

elitefranchise | March 2016

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

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

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

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

28/01/2016 17:54

going global

Frank Stanschus chief operating officer, Little Kickers

that with technology. “Many of our franchisees work entirely from home, which can definitely get lonely sometimes, and to know that there are many like-minded people that you can reach out to for a chat is very useful,” he says. “Skype and Google Apps are used mainly for business discussions but they also act as our virtual watercoolers where people can socialize with each other. This should not be underestimated.”

GETting ONLINE When customers require information about a business, their first recourse is no longer to make a call but to go online. Indeed, if they pick up a phone at all, it’s likely to be a Sophie Atkinson managing director, smart device that gives them instant Autosmart access to the web. This is a gift for international franchises because it means they can centrally organise their communications and control their key messages online. “Customers can ‘self-serve’ online if they wish,” says Stanschus. “This could be as simple as gathering information about our classes, our coaching philosophy and where their nearest class might be, right through to signing up for classes online.” Creating an online presence that’s fit for all devices can also extend a franchise’s global appeal. “Our website is fully mobile-enabled, which means that customers around the world can connect with us via website, mobile or tablet and have access to the full set of functions from any device,” adds Stanschus. Ultimately, franchising is all about combining the personal nature of a small business with the resources of a bigger company. Customers should therefore feel a personal connection but also have lots of choice and using the 66

right technology is key to achieving this. “We try to make it as easy as possible for our customers to interact with our franchisees,” says Stanschus. “From a franchisor’s perspective, we want to allow the franchisees to run a local business with the backing of a global infrastructure. But they also have the opportunity to talk with our franchisees if they have questions. In both cases, the customer and the franchisee have access to the same underlying system.” VIDEO CONFERENCING Business meetings can be difficult to organise when everyone is busy. It’s hard enough getting space in everyone’s diaries when they are in the same building but when they are in different countries regular meetings are impractical. Autosmart International, the vehicle-cleaning products franchise, overcame this problem by installing a video-link programme in its offices. “It is incredibly useful as it improves the quality of communication,” says Sophie Atkinson, managing director of Autosmart International. “It’s much better than a phone call because you can share meeting documents on the link, you pay attention exactly as you do in a face-to-face meeting and it saves the cost and time of having to travel.” However, installing the link at Autosmart’s Staffordshire offices was not without problems. “To make it happen we had to have a superfast broadband infrastructure put in Staffordshire, which cost about £20,000,”says Atkinson. “It took ages for the local council to agree to us digging the road up.” Since then, Atkinson says the benefits have been substantial: the company has gone on to expand into France, Australia, and Sweden, with over 100 franchises joining its international network. “We talk to these countries in this way all of the time because it saves travel time and travel sickness too,” says Atkinson. “It also helps to resolve field-based queries really quickly.” So with a touch of tech, any franchise should be able to manage its global growth with relative ease.

elitefranchise | March 2016

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01/03/2016 17:46

OVER TWO DECADES OF SUCCESSFULLY SETTING Cleaning

1993

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

ESTABLISHED

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

MARK & JAMES Previously Textile Manufacturers

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

CH BL E Cleaning

JOANNE Previously Project manager at Bank of Scotland Starting turnover: £50k Current turnover £175k

Current turnover £590k

Franchise owners say:

PEOPLE UP IN BUSINESS

2016

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

Franchising

LEN DONNELLY

93-2013

Previously Retail Manager Purchased resale Current turnover £350k

ALL FIGURES CORRECT AT THE TIME OF GOING TO PRESS

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

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

BUILD YOUR BUSINESS THE EASY WAY GRAHAM

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

GRAHAM & JAN

We Guarantee:

Previously MD of Colouroll Starting turnover: £48k Selling turnover £400k

• Turnover • Growth • Support

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

Full training, support and low investment Invest from £9,950 to £190,950. Turnover from £14,000 to half a £1/2 Million per annum. With over 100 franchisees nationwide, and many more areas and opportunities available, you too could benefit from the proven Dublcheck system. Dublcheck’s unique franchise system is a proven way to build a successful business in a multi-billion pound cleaning industry.

Further Details:

0800 317236

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

Carol Stewart-Gill, Founder and Chairman of Dublcheck

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

APPROVED FRANCHISE ASSOCIATION FULL MEMBER

*Guarantee turnover is not a guarantee of profit.

Dublcheck Advert.indd 1

DUBL001 29/01/2016 16:30

Reach out for renewables

Other benefits include:

The renewable market in the UK has a predicted value set to reach £50 billion by 2020 and the sector presents fantastic opportunities for entrepreneurs who want to establish a new business in a rapidly growing market.

• Exclusive products

Green Square is looking for like-minded people to join their team and experience a business model that is in high demand from domestic and commercial customers looking towards greener alternatives for practical renewable energy solutions for the future. The Green Square franchise offers the opportunity to work in an ethical environment and penetrate a ring fenced business area, while minimising the risks associated with starting out alone, with a sales potential of over £1 million in three years.

• Fully certified training and qualifications in renewable technology • Quality Management system for microgeneration technologies in place (MCS) • Supported by legislation • Reasonable franchise fee • Bespoke software allowing full system design and calculations for complex installations • Full marketing support: website, launch event and marketing campaigns • Turn-key business concept

For further information please visit our website, or to express an interest in finding out more information email:

franchise@greensquare.co.uk

T: 03333 707 707

www.greensquare.co.uk GREE002 GreenSquare.indd 1

28/01/2016 18:42

FRANCHISE Documents

It takes two BY Kate Legg, CEO of Komerse

f love and marriage go together like a horse and carriage, then so do the franchise agreement and operations manual. Together they comprise the two key documents in a franchise relationship and understanding how they interact is vital for anyone looking to enter the franchise sector. The franchise agreement

The franchise agreement is the legal contract between franchisor and franchisee: it sets out the high-level rules that govern the franchise relationship. These include the rights being given to the franchisee, the term of the agreement, the obligations of the respective parties, the fees payable, how the relationship can be brought to an end and what happens after the agreement ends.

The franchise agreement and the operations manual are vital components of any franchise relationship. But perhaps the most important factor is the interplay between them March 2016 | elitefranchise

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01/03/2016 17:46

FRANCHISE DOCUMENTS

The operations manual

By contrast, the operations manual is a detailed blueprint for how to run the business. It contains the detail that is missing from the franchise agreement, covering the step-by-step procedures that the franchisee must follow on a daily basis. This includes procedures for advertising, customer orders, invoicing, staff recruitment, training and discipline, opening hours, complaints handling, maintaining equipment and everything else a franchisee is likely to encounter during the day-today operation of their business. The manual is a living document

All businesses need to evolve over time to stay up-to-date with current trends, exploit advances in technology and meet changing customer demands. Since the operations manual reflects the operating procedures in the business, it makes sense that the manual will also need to change and be updated from time to time as the business evolves. This is an important distinction between the manual and the franchise agreement. Whereas the manual will be updated and changed over time, the terms of the franchise agreement are fixed for its duration. If a franchisor wants to make any changes to the franchise agreement, they will usually have to wait until renewal. Given the franchise agreement is thought of as the rules of the game, it makes sense that it should be fixed for its whole term. As a result, there is a critical balance to be struck between flexibility and certainty. On the one hand, there must be enough flexibility to allow the business to innovate and evolve; on the other, the franchisee needs enough certainty to know what they are signing up to. Striking this balance can be achieved by providing flexibility in the manual and certainty in the franchise agreement. Legal status

The franchise agreement will be signed by all of the parties to the agreement and, once signed, it becomes legally binding. The manual is also legally binding, despite the fact that it is not signed by both parties and that changes can be introduced unilaterally by the franchisor. Essentially, this is because one of the franchisee’s obligations in the franchise agreement will be to comply strictly with the manual. Because of this, the franchisor is able to enforce the provisions of the manual as if they were set out in the franchise agreement itself. As this enables franchisors to take action against those franchisees who fail to follow the manual, this can help them to ensure consistency across the network and maintain the quality of the brand. 70

Disclosure to new and potential franchisees

All reputable franchisors will give new recruits a copy of the franchise agreement for them to take away and review before they sign. Most will also encourage their recruits to have the agreement reviewed by a lawyer with relevant expertise. But surely if the operations manual is legally binding, shouldn’t it also be taken away for review? In reality, the manual represents the franchisor’s secret sauce; it contains the detailed instructions for operating that type of business. It would be a disaster if a person could obtain all of the franchisor’s hard-won knowledge and trade secrets by pretending to be interested in the business, only to use that knowledge to set up in competition. As a result, the franchisor won’t usually allow potential new recruits to take a copy of the manual until they have signed up to the franchise agreement. Having said this, the manual is a legally binding document, so the franchisee should be allowed to inspect a copy – usually at the franchisor’s premises – before they sign. The franchisee should review the manual and satisfy themselves that it covers all of the relevant areas of the business in sufficient detail for them to be able to follow the system. Two become one

The franchise agreement and manual are two distinct but interrelated documents. A franchise relationship cannot operate effectively unless both documents have been properly drafted and dovetail with each other. On their own, each document is of limited use but, when taken together, the whole becomes the backbone of the franchise relationship.

elitefranchise | March 2016

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01/03/2016 17:47

Buy a sandwich

franchise with

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!

Franchise Sales.indd FP AD PLACE.indd 11 Talk Business Advert - February 2014.indd 1

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02/03/2016 15:00 01/04/2014 21:00 07/03/2014 10:36:03

BE PART OF THE EXCITING NEW CURRENCY REVOLUTION

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NEW ZEALAND

BBX001

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

BB UK

BUSINESS BANK EXCHANGE 29/01/2016 16:57

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

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

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

Regional P&L Forecast YEAR

P&L

£64,906

£133,956

£313,006

£418,342

£535,943

District P&L Forecast YEAR

P&L

£50,838

£121,015

£251,935

• Running periodic networking events

• Maximising the clients usage of our currency

£305,135 £347,396

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

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

BB UK

BUSINESS BANK EXCHANGE 06/10/2015 14:12

Jani-King – cleaning franchises with a real difference…

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

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

The purchaser will benefit from:

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

JKFR001

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

DYNA001

Franchise RESALES - sponsored by Franchise ReSales Mar16.indd 1

02/03/2016 15:02

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.

TAXA001

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

TAXA001

Franchise RESALES - sponsored by Franchise ReSales Mar16.indd 2

02/03/2016 15:03

ADVERTISING FEATURE

Is franchising for you?

franchise’s merchandising and policies. On the other hand, so long as you’re happy to work within the franchise’s parameters, you can actually find a good deal more flexibility and control within the system than is typically offered in regular employment.

3. You enjoy hard work Franchises don’t necessarily require the same number of long hours that setting up your own business may call for. But they do still require a good level of enthusiasm and input and this is where some people fall down, thinking that all the hard work is already done for them. Depending on how well known the franchise is, the brand name should indeed help to draw some customers and you’ll also benefit from exclusivity clauses, but this isn’t a route for those looking to just kick back and let the brand name do all the talking. If you’re looking to buy a franchise, you still need to be motivated and committed. You need to be able and willing to devote the necessary time and energy to the venture. At the same time you’ll also need to follow the franchisor’s systems and policies.

2. You want some security Setting up and running your own business from scratch is a process fraught with uncertainty and pitfalls and even those people that do a good amount of research and are experienced in the field can find the challenges difficult to deal with at times. Most people setting up their own business don’t start making

4. You can afford it Buying a franchise can be surprisingly expensive, especially if it’s a wellknown name. It’s not something that everyone can afford to do, so you may need to consider your finance options and budget carefully. But if you have access to good credit or other available funds and you have answered yes to the other three questions above, then buying a franchise just might be for you.

from FranchiseSales.com

What kind of person should buy a franchise? If it is something that you’ve considered in the past or are now considering, then this could be a pertinent question. After all, not everyone is suited for this type of work

any people enjoy the structured environment that full-time employment offers. Others find the uncertainty involved in running their own business, albeit a franchise, off-putting or even alarming. So is it right for you? Let’s take a look at four top reasons why it just could be.

1. You want more control With a franchise, you’ll still have involvement with – and guidance from – the franchisor. The extent to which this guidance is hands-on varies but if you’re after complete control of your business then franchising may not be a model that suits you. You’ll still have to adhere to the

a profit straight away, so it can be problematic if you don’t have solid finance or other funds in place. A franchise, on the other hand, is a tried-and-tested model that offers a level of security because there is already brand awareness and an existing customer base. You’ll also benefit from the ongoing support and training that your franchisor can offer, rather than being thrown in at the deep end and left to figure things out for yourself.