Elite Franchise Magazine July 2014 by webwax

SUMMER 2014

No sweat In just 12 years, Chuck Runyon and business partner Dave Mortensen have built a global fitness empire with more than 2,500 outlets. Franchising was key to Anytime Fitness’ rapid expansion – and to maintaining a trim bottom line

SUMMER 2014

£4.50

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ul f s s e c c u s t s The mo tion a r e t l a t n e garm K U e h t n i e s franchi

Who? • Are you ambitious to run your own business? • Customer driven and well organised? • Can you follow a proven business system?

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

Support Includes: • • • • •

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

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

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

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

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ADVERTISING FEATURE

The ZipYard offers a professional tailoring and alterations service in a clean, purpose build environment

Tailor-made for success O

ur award-winning business is all about outstanding customer service. Whilst there are no other specialist alterations and tailoring centres in the area, there are numerous businesses offering similar services and competition is great. As the top performing ZipYard, we have raised a total of 22,500 invoices. Turnover in the first year was £174,500 from 9978 customers. In the ten months to date of our second year we are at £238,000 from 12,675 customers and on track to hit our target of £274,000 by year end.

Added Value

We want our customers to believe that nothing is too much trouble. We don’t charge any extra for the express service and often carry out additional minor repairs for free. If one of the seamstresses notices a button needs replacing whilst they are turning up a hem it takes very little additional time to do the complementary work – and customers are always surprised and delighted. Frequently people come in off the street with a button that’s just popped off. We’ll fix it there and then, again for no charge, confident in the knowledge that he or she will regard us as a lifesaver and talk about The ZipYard to others.

Customer stories

We frequently see brides who have bought a

Richard McConnell being awarded Franchisee of the Year at the ZipYard Conference on Saturday 21st September 2013

dress from the internet. On one occasion a woman came in to the centre in tears with a dress that fitted terribly. By the time we had finished she was parading up and down with a big smile on her face. Another customer spent over £400 altering her wardrobe after a successful diet and an elderly lady brought in all of her clothes to be taken in - all bundled into storage boxes and carried up the high street to us. Nowadays very few people have the time or skill to mend their own clothes – and a lot of our work involves repairs - but even I was surprised when one of our regular customers brought in a pair of her son’s Y-fronts for us to fix a tear! For many of our customers we have become their personal tailors. One well-heeled man left a message on our answering machine to say his wife was bringing in a ball gown the next day so ‘please leave space on your machine’ for her. They expect a very fast service and we rarely disappoint. A regular moved out of the area but saves up his repairs until he comes back to visit friends – travelling over 160 miles for our quality of service.

The Future

Managing customer expectations isn’t easy and it has been a big challenge for us to be able to turn round work quickly as the volume increases. Recently we dealt with 90 paying

“We are all very proud of Richard and his team who have developed a great business in Altrincham – and so successful has this been that Richard has now opened his second Centre in Wilmslow which is testimony to the tremendous potential of the brand” Nigel Toplis, Managing Director

customers in one day which is ten an hour. We already open seven days a week and are looking to employ another seamstress to focus full-time on express work and have installed a second till to cope with the queues that had begun to form outside the door in busy periods. We are looking at ways to extend the range of services we offer including a paid-for delivery and collection service which will appeal to our busier user clientele. At the moment I manage ZipYard with the help of one other but I will be recruiting additional customer-facing staff to free me up to do more marketing and work on plans to open another ZipYard in the north-west. Summer 2014 elitefranchise 3

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Contents

The Elite interview Chuck Runyonâ&#x20AC;&#x2122;s fitness franchise is pulling away from the pack

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Contents

41 Scam-busters Lloyds’ franchising chief Richard Holden reveals how to spot a fake business opportunity

46 The social network Social media marketing comes with additional challenges for franchises

49 Old dog, new tricks

27 32

7 Editor’s letter 8 Contributors 12 News & events 16 Talking point

Ed Savory lays down the law on ethical franchising

Subway’s Rachel Shaw espouses the importance of people in business

Wok & Go is bringing nutritious noodles to a town near you

Your first franchisee can set the benchmark for future glories

54 Keep to the code 64 Franchise diaries

27 One to watch

32 Leading the way

It’s often worth taking a look inside your walls for your next franchisee

37 Survival of the fittest Adapting your franchise to different cultures is key to international success Summer 2014 elitefranchise 5

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6027 Franchise mag advert 12-6-14_Layout 1 12/06/2014 17:37 Page 5

Turn over £828k a year with this B2B management franchise opportunity

Entry-level investment from £35,000 (licence fee £30,000) Help available with purchase finance

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

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Financial returns

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

• Franchisees from a wide range of backgrounds • No previous knowledge or experience required, but... • A passion for excellent customer service and the commitment and desire to build a successful, profitable franchised business • 93% of existing franchisees would buy a Driver Hire franchise again!

• Average full year franchise turnover of £828k in 2013/14 • 29 offices achieved sales of £1m+ in 2013/14 • Low fixed costs and attractive resale values upon exit • Net profit potential of over £100,000 per annum • Opportunity to boost revenue significantly by offering complementary products

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

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AWARD WINNER - bfa HSBC ‘Franchisor of the Year’ 2006 and 2012 FP AD PLACE.indd 1

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Editor’s Letter

VOLUME 02 ISSUE 04 / 2014

SALES Harrison Bloor Senior Account Manager harrison.bloor@cemedia.co.uk Darren Smith – Account Manager darren.smith@cemedia.co.uk EDITORIAL Hannah Prevett – Editor hannah.prevett@cemedia.co.uk Adam Pescod –Web Editor adam.pescod@cemedia.co.uk Josh Russell – Feature Writer josh.russell@cemedia.co.uk Jon Card – Feature Writer jon.card@cemedia.co.uk James Dyble – Intern james.dyble@cemedia.co.uk DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Dan Lecount Web Development Manager dan@cemedia.co.uk Marketing Kelly Dunworth Head of Communications kelly.dunworth@cemedia.co.uk CIRCULATION Malcolm Coleman Circulation Manager malcolm.coleman@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk Colin Munday Management Accountant colin.munday@cemedia.co.uk ADMINISTRATION Charlotte James – Administrator charlotte.james@cemedia.co.uk DIRECTOR Scott English Managing Director scott.english@cemedia.co.uk

The best franchises have staying power

huck Runyon isn’t your average Yank. Having attended several conferences stateside, many of the uber successful American bosses I’ve met have been friendly and welcoming yet, in all honesty, have insisted on conversing entirely in corporate speak. Runyon is a welcome breath of fresh air. He speaks candidly – whether about family turmoil during his formative years, the challenges of raising his own children Being a successful or early mistakes in the growth of Anytime Fitness, his now international fitness brand. entrepreneur is Whilst immensely proud of Anytime about building Fitness’s success thus far, he acknowledges that the battle is far from won. The fitness businesses that last market is a notoriously crowded one, as it is transient. Spinning is the latest craze one week; CrossFit the next. Particularly in the franchising industry, longevity is seen as the true marker of success. A decade of accruing customers and money in the bank is not to be sniffed at, but can you make it 50 years, 100 years even? Being a successful entrepreneur is about building businesses that last – not those that are a flash in the pan, says Runyon – and I tend to agree. And for what it’s worth, given Runyon’s passion for technology and genuine desire to improve health and wellbeing globally, I reckon Anytime Fitness has definitely got staying power. HANNAH PREVETT EDITOR

No part of Elite Franchise may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor. Elite Franchise will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the printing process, images can be subject to a variation of up to 15 per cent, therefore CE Media Limited cannot be held responsible for such variation.

cemedia.co.uk

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Contributors

Rachel Shaw

We’ll definitely be keeping our fingers crossed for our resident franchisee diarist between now and October. Much to the delight of Shaw, Subway and us too, she has been shortlisted by the British Franchise Association for its Female Franchisee of the Year Award. Suffice to say, if she does end up being named the winner, we’re sure that Shaw will dedicate the victory to her staff; the importance and brilliance of whom she trumpets in this month’s column.

Ed Savory

Taking up the mantle of legal eagle this month, Savory is proof that even the most archaic of industries is capable of moving with the times. His bio says he has a “modern pro-active approach to legal advice”, which, in other words, means he’s active on Twitter. And when he’s not tweeting valuable legal advice to his avid followers, Savory can be found traversing the country on two wheels. Along with his mates, he hopes to have cycled the whole coast of Blighty by the age of 65.

Leona Connor

Designer Connor is the talented soul who brings such beauty to the world of franchising. But beneath that artistic veneer beats the heart of a cold-blooded barbarian, as anyone who has made the mistake of getting between her and her cup of tea knows. As Elite Franchise’s resident Game of Thrones expert, Connor couldn’t resist a recent visit to Belfast for her chance to sit on the Iron Throne. She may rule the roost here, but it seems she’s got her eye on wider conquests. The Seven Kingdoms better watch out.

Richard Holden

Gracing this month’s finance section is Lloyds Bank’s own franchising guru, who offers some timely tips to franchisees on how to spot a scam. It’s safe to say Holden has become part of the furniture at Lloyds with 32 years under his belt. While he still enjoys preaching the perks and pitfalls of franchising to his customers, happiness is sporadic for Holden away from the office, whether that’s due to his struggles on the golf course or life as a long-suffering fan of Stoke City.

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The Opportunity Are you looking for a better work life balance? ✔ Always wanted to run your own business? ✔ Want to increase your earnings? ✔ Ambitious and aspirational SmartPA is the fastest growing business-to-business service provider Contact SmartPA for your FREE Discovery Pack & Consultation

t:0845 872 2262

e: info@smart-pa.com

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ADVERTISING FEATURE

A smart future SmartPA provides market-leading PA, secretarial and administrative support services to businesses. Co-founder Sarra Bejaoui explains why SmartPA Franchise is perfect for those seeking flexible home-working, exceptional training and revolutionary technology

t 16 I knew I wanted to be a business owner, the only problem being I didn’t know what that business would be. My first business plan (aged 17), a nightclub that only served water, fell flat quickly for obvious reasons. Undeterred, I started a lifestyle management business but soon realised that the real potential was in the business-to-business market. SmartPA was born, although not without its ups and downs. Determination, patience and vision are essential – success does not happen overnight. That’s why franchises are great: you can build on an already established name whilst benefitting from industry expertise and support. You also bypass the costs needed to start a business from scratch. After several years of outstanding success, SmartPA was ready to take the next steps and expand. Business mentor and coach (now SmartPA CEO), Andrew Wright, had vast experience with global licensing and advised us to franchise in order to achieve the global reach

we aspired to. and development process we are creating new The reaction to SmartPA Franchise has blown solutions to improve efficiency, productivity and us away – we are now one of the fastest growing visibility. SmartPA is benchmarking standards partnerships in the UK, specifically within the within the industry and we intend to continue female demographic aged 30-55 who wish to doing so. work from home. A key element of our success It’s such an exciting time for SmartPA: we is recruiting the right people who are just were recently bfa and FranchisingWorksas passionate about SmartPA as we are. Our accredited. SmartPA has also been developing partners aspire to deliver a phenomenal service a number of technologies which are set to and are committed to continual learning and revolutionise homeworking, not only for the development. partners but worldwide. Not only is it important Besides our recently that your team share your launched social media vision but that they must management tool, Smart also be provided with Social, we are due to the right skills, tools and release a comprehensive learning opportunities e-learning platform and needed to deliver and SmartPA Home. We pride flourish within the ourselves on always being business. Our training one step ahead of the game is the most in-depth in and looking to tomorrow’s the market and provides innovations. SmartPA’s partners with the impressive technology Sarra Bejaoui, SmartPA accreditation they need to roadmap is a testament to run their own SmartPA this. business. The brilliant thing, as well, is that you We continually support our partners and help don’t need PA experience to become a SmartPA them grow. Our promise is to help them build partner. Our partners come from a variety of on their existing success and become experts professional backgrounds and their experience within their field. brings an exciting dynamic to the team. Several Businesses of all sizes will always need of our franchisees choose to pursue corporate additional support to help with workload roles within the business, aiding SmartPA’s and skill shortage. The business community development and growth. recognises SmartPA as experts and market SmartPA is committed to remaining at the leaders within the industry so demand for forefront of the administration and secretarial our services is high. SmartPA guarantees hot sector, so we constantly review and update leads which helps eliminate uncertainty for our practices. We want to ensure that our prospective franchisees. I know better than services, tools and techniques are always fit for anyone that investing your own money in purpose in the current marketplace and for business can be scary but the rewards are our partners. Throughout this analysis, change worth it.

It’s such an exciting time for SmartPA, we were recently BFA and FranchisingWorks accredited

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News + Events

Home Instead Senior Care has seen three new franchises join its network in what has been a very productive June for the company. The firm that specialises in non-medical care for the elderly in their own homes already has 150 franchises throughout the UK and is looking to expand into new territories. New franchisees Michelle Fairless, Gavin Morrigan, Moona Karim and Laura Green join the industry at a time when the average age of the population continues to rise. It’s certainly good to see this worthwhile service spreading into all corners of the country.

Pizza Hut Delivery franchisee Umer Chohan is expanding his network after securing a mouth-watering £775,000 of funding from HSBC. Chohan’s PH Leicester business has acquired four outlets, three in Leicester and one in Tamworth and he is also looking to break into the Grantham and Nuneaton areas. Chohan is hoping to build a portfolio of ten outlets over the next 12 months and generate some delicious profits. He certainly has form in the pizza arena, having previously operated franchises for Domino’s before his switch to Pizza Hut, where he believes there are “greater growth opportunities”. May the pizza wars commence.

WORDS: JAMES DYBLE

Dentist Direct has decided to cut its teeth at

franchising and has secured a tidy £400,000 investment from the Finance for Business North East Growth Fund (NEGF) to help it on its way. The dental company, which already owns sites in Colchester and Milton Keynes, is now able to take the next step in opening practices thanks to the NEGF fund. Let’s hope they open a surgery in Liverpool to ensure a certain Uruguayan footballer can have regular check-ups during his time off.

If there’s one thing the Elite Franchise team loves after a long day of researching, editing and drinking fine Italian coffee, it’s a delicious takeaway. So you can imagine the joy when news landed on our desk that Bristol-based Chinese takeaway brand Hotcha is looking to expand into new areas with its franchise scheme. Having already grown to ten stores in three years, owner James Liang looks like he’s got all the ingredients to create a strong UK brand. A CV that includes senior roles at Domino’s, Millies Cookies, Upper Crust and Dunkin’ Donuts also stands him in pretty good stead.

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News + Events

Everyone’s favourite fish and chip brand Harry Ramsden’s will soon be opening restaurants in Qatar after agreeing a five outlet deal with Ahmed Bilal Trading and Contracting Company (AHB). The Qatari business that specialises in luxury hospitality suites has confirmed it will be opening the first branch in 2015 at an upmarket development in Doha. This surely comes as great relief to England fans who are now at least guaranteed some home comforts during the 2022 World Cup. But only if we manage to qualify, of course.

Autosmart cleaned up at the British Franchise

Association (bfa) Franchisor of the Year Awards 2014, driving home with both the Franchisor of the Year and Franchisee Recruitment gongs. The country’s largest supplier of business-to-business vehicle cleaning products is no stranger to accolades, having picked up the Franchisor of the Year award in 2008 and 2012. Elsewhere, Right At Home, the professional care provider, scooped the Emerging Franchisor award, while Kumon, the education franchise, won Brand of the Year.

Mobalpa, the French kitchen manufacturer and retailer, is

giving us the chance to practice our coq au vins and crème brûlées by offering franchisees throughout the UK after a successful pilot scheme. With sales of £1.1m expected this year, the Warrington-based franchise’s impressive results have convinced its owners to build upon its 580 worldwide outlets. It will continue to offer support and training to ensure its franchisees are the crème de la crème of kitchen showrooms. A new store in Richmond, North Yorkshire has already been confirmed, with talks for a further two units underway.

Upcoming Events bfa Prospective Franchisor Seminar July 9 Pannone Solicitors, 123 Deansgate, Manchester M3 2BU bfa Prospective Franchisee Seminar July 10

Pannone Solicitors, 123 Deansgate, Manchester M3 2BU bfa Specialist Masterclass International Franchising July 15 British Franchise Association, 85f Park Drive, Milton Park, Abingdon OX14 4RY

SJC Accountancy, founded by Essex entrepreneur Simon Dolan, is launching a new UK franchise offering trained accountants the opportunity to work for themselves. Express Accountancy, which specialises in providing certified accountants to the selfemployed and small businesses, is offering franchisees a guaranteed buy-back scheme, which is apparently a first for the industry. “Franchising is the perfect solution for accountants who want to work for themselves but don’t want to take the risk of setting up from scratch,” said Daniel Moss, franchise development director at Express Accountancy. This certainly sounds like a great opportunity for those wanting to take a calculated step into franchising. Franchise Opportunities Live September 5 - 6 Radisson Blu Edwardian Heathrow, 140 Bath Road, Hayes, Middlesex UB3 5AW bfa Northern Forum Manchester September 10 Hilton Manchester Airport, Outwood Lane, Manchester M90 4WP

bfa Midlands Forum Birmingham September 11 Moor Hall Hotel, Sutton Coldfield B75 6LN bfa Affiliate Forum Central London September 23 Broadway House, Tothill Street, London SW1H 0BG

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ADVERTISING FEATURE

A five-star initiative Business research firm Smith & Henderson recently released the results of its innovative 5 Star Franchisee Satisfaction programme. Its aim is to truly identify exceptional franchises from the point of view of an investor. It reviewed which franchises stood out and what this new transparent method of evaluation could potentially do for investors

am sure you will agree, transparency in the franchise industry is crucial; it’s what everyone is looking for. One of the largest problems quality franchise operations have faced since the start of franchising has been putting clear distance between them and other poorly run operations posing as franchises in the eyes of an investor. Now, thanks to a ground-breaking idea from Smith & Henderson, the research firm, franchising has entered a new age of ultra-transparency – allowing only the best businesses to come out on top. Smith & Henderson’s 5 Star Franchisee Satisfaction programme identifies the best franchise operations in the UK by talking to the people who know them best – existing franchise partners. In 2013, over 2,000 franchise partners were asked to confidentially provide information about their franchisor on a multitude of different areas to find out what the support is really like for those benefitting from it today and how it has compared with their expectations before going into the business. Steven Frost, managing director of Smith & Henderson explains: “5 Star Franchisee Satisfaction is based on this principle. Each year, we ask thousands of actual franchisees to rate their franchise partnership experiences. We guarantee that their answers are confidential so they give honest feedback. We then award 5 Star Franchisee Satisfaction to franchisors that receive above average feedback in all five areas that we measure.” Analysis is thorough enough to ensure that only the best Franchisors receive the 5 Star award. The first step for franchisors wanting to be assessed is that they register their details

online, all contact details for existing franchise partners must then be provided, in order for research to take place. Once the businesses are registered, all franchise partners are invited to give 100 per cent anonymous feedback in an online survey. The anonymity ensures franchise partners can be honest without fear of repercussions. The online survey consists of 30 questions and covers five main areas, including training/ support, the franchise system, franchisor relationship, franchisor leadership and overall satisfaction. This year’s winners in order were ActionCOACH Business Coaching, Helen O’Grady, Home Instead Senior Care, Little Kickers, McDonald’s, Music Bugs, Platinum Property Partners, Puddle Ducks, Tatty Bumpkin and TaxAssist Accountants. All of these brands can now boast genuine franchise partner satisfaction in accordance with Smith & Henderson’s firm valuation. Ian Christelow, managing director of ActionCOACH UK said of the award: “I feel honoured to be part of a company with such an amazing team of franchise partners. To win the prestigious 5 Star Franchisee Satisfaction award as a result of our team’s positive

“I feel honoured to be part of a company with such an amazing team of Franchise partners” Ian Christelow, Managing Director of ActionCOACH UK

ratings and comments makes everything we strive to achieve thoroughly worthwhile. ActionCOACH is a referral-based business and building a team of delighted franchise partners is and needs to stay front and centre of everything we do.” The research process is arduous and obtaining the results of the 5 Star Franchisee Satisfaction programme takes careful analysis. But for those qualifying brands, the label is a rubber stamp of approval for continued quality in the industry. Steven Frost continues: “There are hundreds of franchise opportunities currently being advertised and it’s difficult to stand out from the crowd. Receiving the 5 Star Franchisee Satisfaction award helps to differentiate your franchise from the competition, demonstrates the level of support you provide and helps build trust with prospective franchisees.” Franchise operations that achieve the soughtafter award can provide additional evidence in the form of third party analysis, showing that everything they promise in the lead up is 100% accurate. More importantly, people looking for a franchise can be sure that a 5 Star business

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ADVERTISING FEATURE

L-R: Ian Christelow, ActionCOACH; Steph Jones, ActionCOACH; Stephen Frost, Smith & Henderson

is one with many happy franchise partners already in existence, which is sometimes difficult to tell. “Franchisors that have recently been awarded 5 Star Franchisee Satisfaction have on average, happier and more satisfied franchisees,” says Frost. “While nothing guarantees that a particular franchise is a good fit for you or that you will be successful, franchisors that have recently been awarded 5 Star Franchisee Satisfaction are a great place to start.” Frost points out that looking at 5 Star franchises is definitely a good idea but adds that there are other important factors to consider. “There are some other important considerations like evaluating if you have what it takes to run your own business, what you are passionate about and researching the market that the franchisor serves,” he says. “In addition, before investing in any franchise we strongly recommend that you receive professional legal advice from a bfa-accredited franchise lawyer. “Knowing a franchise has 5 Star satisfaction will of course give people confidence in what is perhaps a very new sector to them.” This year’s presentation evening for the prestigious 5 Star Awards was held alongside

the Best Franchise Awards, which recognises several outstanding brands. The evening, sponsored by Franchise Development Services, brought famous faces of the franchise world out in force and was a celebratory evening for the positives that franchising brings to the wider UK economy. Frost adds: “We received exceptional feedback from franchisors receiving the awards, franchisors who are yet to participate in the programme and prospective franchisees.” Smith & Henderson has a bright vision for the awards as a way in which excellent franchise operations can distinguish themselves from other, lower quality businesses. Frost concludes: “In the last few years, we’ve seen a new level of transparency when booking a holiday, buying a car or even a vacuum cleaner, thanks to websites like Trip Advisor and organisations like Which? Our vision is that 5 Star Franchisee Satisfaction will bring the same level of transparency to franchising, helping outstanding franchisors stand out and helping prospective franchisees to make better-informed decisions.” For franchisors and investors alike, 5 Star Franchisee Satisfaction is undoubtedly important.

“ActionCOACH is the only franchise company I know that will offer a written guarantee to the right candidate that his or her investment is safe (as long as the investor does the marketing and uses the ActionCOACH system of course). When they say the right candidates can earn £50,000 a month, I know it is true, and not hype.” Michael Angel Plaza, CEO, CompareTheFinancialMarkets If you would like more information on the ActionCOACH, Business Coaching Franchise then please call Rainy or Sam on: 01284 701 648 Alternatively you can watch the six minute overview video at: www. actioncoach-franchise.co.uk/overview

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Talking Point

Franchises are based on a proven business model

A fiscal friend? Most industries have struggled over the last decade but franchising has seen record growth. What makes it such a powerful economic force?

WORDS: JOSH RUSSELL

hile our cousins Stateside have always worn their hearts on their sleeves when it comes to franchising, it has taken us Brits a little longer to get a handle on quite how much potential the model has. But it’s certainly better late than never. Granted, we’ve always had a healthy franchise sector in the UK but the last decade has seen an explosion of franchised firms allowing people to buy into a tried and tested business model. The recession has had a huge impact in stimulating the franchising sector. With so many individuals finding themselves out of work and often flushed with redundancy money in the years after the financial crisis, there has been no shortage of people looking to buy and build their own business. Indeed, the 2013 NatWest British Franchise Association (bfa) Franchise Survey revealed that, while the economy has shrunk 2.5% over the last five years, the franchising sector’s contribution to GDP has leapt by 20%. Given the survey also demonstrated that franchising is currently contributing £13.9bn to the economy, franchising is clearly offering fertile growth even during the most barren circumstances. But what is it that makes it such an indomitable contributor to the UK’s GDP?

Walk along any high street and the chances are that many of the retail and fast-food outlets that are trading successfully are Suzie McCafferty franchisee-owned but the contribution of managing director, franchising to the UK economy is often Platinum Wave underestimated. There are currently over 500 franchise brands employing just under 600,000 people in the UK and, according to the bfa, 92% of franchise units are profitable. Why is it that while many businesses are failing the franchise sector continues to thrive? The key reason franchise-owned businesses are more resilient in a recession is that they are based on a proven business model with many years of successful trading behind them. Franchisors need to firstly prove that their business model is profitable and has long-term sustainability before they franchise to others, and will have spent years investing in and developing their operational and marketing systems. This is a crucial factor which enables franchise businesses to remain focused on the market and continue to experience positive trading even in challenging economic conditions. Another factor is that franchisors go to great lengths to only recruit franchisees who they believe will make a success of the business. The recruitment and selection process of franchisees tends to be fairly rigorous to filter out those candidates who may not have the qualities needed to succeed. All of these factors contribute to the success of franchising within the UK economy.

A better deal for all With franchised businesses contributing so much to GDP, it’s hardly surprising that the most recent recession has seen franchised businesses go from strength to strength. Steve Tarbard But why is this? Mainly because a franchise franchise development offers a win-win situation for both consultant, franchisor and franchisee. The Franchising Centre The franchisees are building upon a capital asset, something they own, adding value to both their own individual businesses and also the franchisor’s. A key benefit is that they are buying into a proven business model, something they can see in operation before they invest and that’s statistically less likely to fail than a start-up. As with any business, owning and running a franchise still requires hard work and success is never guaranteed but at the very least a franchisee is putting the likelihood of success in their favour, which is a major plus point in any economic environment. Meanwhile, businesses suited to expansion through franchising can grow quickly, without using up their own cash reserves or borrowing too much from financial institutions. Franchisors benefit from having motivated individuals with the drive to grow and build their businesses. This generates a powerful business bond, which goes some way to explaining why franchising is such an important economic force in the UK today.

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Be your own boss – join one of the world’s most successful franchise groups! At Mail Boxes Etc. we need energetic people with drive, determination and enthusiasm to join our expanding 145-strong UK network. You don’t need any previous experience because we have 21 years’ in the UK franchising industry and everything is covered by our comprehensive training programme.

Mail Boxes Etc. franchise opportunities offer:

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

Call Rachel on 01608 649238 or email franchise@mbe.co.uk mbe.co.uk/franchise_opportunities Mail Boxes Etc. Centres are owned and operated by licensed franchisees of Mail Boxes Etc. (UK) Limited in the UK and Ireland. © 2014 Mail Boxes Etc.

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01/07/2014 22:21

An endurance (L)EF Interview.indd 1

01/07/2014 22:43

THE ELITE INTERVIEW

In 2014, Anytime Fitness was awarded the top spot in Entrepreneur magazine’s Franchise 500, trumping longestablished brands such as McDonald’s and Subway. But founder and CEO Chuck Runyon says longevity is the true test of a stellar business

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t’s quite some statement to get a tattoo. To have the name of a loved one, an adored pop star or a cherished football team permanently emblazoned on one’s skin would, for many, be a step too far. But not, it seems, for Anytime Fitness members and franchisees. Nearly 2,000 people around the world now have the gym franchise’s purple running man logo permanently inked on various body parts. For many of its members and franchise owners, Anytime Fitness isn’t just a health club franchise. The company has changed their lives, helped them get fit or lose weight, explains Chuck Runyon, Anytime Fitness co-founder and CEO. “The reasons they do it are so deep and profound. Businesses can’t be so transaction-based. For us, it’s all about engagement; engaging with employees and engaging with members.” Somewhat inevitably, the Minnesota-born entrepreneur also has a running man tattoo – on the back of his arm. “You have to lead by example,” smiles Runyon. Of course, 2,000 people is a drop in the ocean in the context of a gym company that now spans 20 countries, has 2,500 outlets and more than two million members. But with the bright, charming and utterly convincing Runyon at the helm, it’s not difficult to imagine more Anytime Fitness disciples following suit (it helps that they get reimbursed for the cost of the tattoo). From a young age, Runyon knew that he wanted to work in health and wellbeing. “I was an average student at best,” he says. Instead of poring over textbooks, his time was consumed with playing sports and, as he got a little older, paper rounds and part-time jobs in various fast-food restaurants. There was another dominant theme in his childhood: his older brother was regularly hospitalised with a serious medical condition, which eventually claimed his life at 18. Runyon was just 13 when he lost his older sibling. “We grew up lower middle class and often struggled because medical insurance wouldn’t necessarily cover all of the hospital visits and treatment,” he recalls.

01/07/2014 22:44

THE ELITE INTERVIEW

“It was, of course, a painful experience for me, my parents and my family. It’s always given me a dose of perspective that life is a bit uncertain. I guess I have a bit more of an appetite for risk or adventure than most people; maybe I’m a lot less fearful because I realise that life is uncertain.” Watching his parents struggle for cash throughout his childhood also drove Runyon to want to be successful. “I think birth order – I was a middle child – being competitive and seeing your friends have things that you don’t all drives you to want success and the material things that come with that,” he says. Having abandoned early dreams of becoming a basketball player, Runyon began working in local gyms and health clubs after completing his high school education. And at 21, he decided it was time to leave Minneapolis and go overseas to find fame and fortune. For six years he travelled around the US, Canada and Australia with pal Dave Mortensen – his Anytime Fitness co-founder – to work as a business development consultant for gyms and health clubs. “We would go to a local town and work there for about two months and we would do a barter: we would give the local hotel free memberships to the club we were working with in return for staying there for free. And in the two months we were there we’d work to drive membership for the local health club and train some of its staff,” Runyon explains. They were then given a percentage of revenues, based on performance. It was an incredible opportunity, he says. “Just when we were starting to get a bit bored we’d move on to to another somewhere else. It gave me the chance to see small, medium and large towns all across the US. I was a kid from the east side of St Paul, Minneapolis, which is slightly lower income, so for me to travel and go to the south or go to the east or go to Canada was very eye-opening. I had never been on a plane before I was in my twenties, just because we couldn’t afford it. I was going to states that my parents had never been to. It was a really wonderful experience.” In time, the pair franchised the model. As they travelled, they would train other people to do the same. “We would have 15-20 teams all across the US doing this and we’d get paid a percentage,” he says. Then, in 1995, they came across a distressed gym in west St Paul, close to the Twin City area of Minneapolis. “We bought it from the bank very, very cheaply,” Runyon says. “We put equipment in it, we remodelled it entirely. So, while I travelled the country, my partner primarily did that.” From 1995 until 2002, that club was so successful that Runyon and Mortensen

bought another two similar spaces. “At one point, we owned three full-service clubs in the US. They were typical 4,000 sq metre clubs with all these different features,” he explains. But there was a glitch. “Although it was profitable, we noticed that most of our members were not using all the areas: they weren’t using the racketball courts or the smoothie bar. 90% of our customers came and used cardio machines and weights. In addition, we had all these overheads: utilities, pool chemicals, staffing and we were thinking, ‘We’re paying for all of this but people are only using a small portion of it.’” The genesis of the idea for Anytime Fitness was formed: conveniently located gyms, with cardio machines and weights but without the bells and whistles of full-service centres. They would be accessible 24/7 and, as a result, occasionally unstaffed. “That business model did not exist at the time, and most people did not think it would work – including family,” elaborates Runyon. The smaller gyms attracted a different type of

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THE ELITE INTERVIEW

All of our growth is predicated on happy franchisees who are successful

clientele, he adds. “It’s a smaller environment, in which people feel more comfortable. In our industry, there’s a lot of intimidation, a lot of fear about not belonging because people think they’re not in good enough shape, so the smaller environment really reduces that barrier,” he says. The decision to franchise the business was a no-brainer, says Runyon. “We decided from day one that we would franchise,” he says. “My only franchising experience was working at McDonald’s when I was younger. We knew nothing about franchising, but we thought it was a very interesting way to grow because when you franchise you use other people’s capital or landlords’ capital to grow faster.” The allure was heightened because another fitness franchise was going gangbusters. “At the time, Curves was very, very big in the States. When we started Anytime Fitness, they were very much still in their prime. At one point they had over 10,000 global units,” explains Runyon. But while Curves’ fortunes have faltered, Anytime Fitness is very much on the ascent. The day before our meeting, Runyon was in Madrid to cut the big, purple ribbon on its

2,500th club. Franchisees are still chomping at the bit to open their own fitness meccas. The price tag varies, depending on the size of the space and how generous landlords are with their contribution to fit-out costs, but Runyon estimates wannabe US franchisees need around $100,000 to $150,000 to get started. In the UK or Europe, it’s likely to be double that: here, Anytime Fitness franchisees will need to fork out around £175,000 to £200,000. The discrepancy in cost is largely down to landlords in Europe being less willing to contribute to construction and remodelling, in Runyon’s opinion. Nevertheless, the cost doesn’t seem to be prohibitive: 100 franchises have been sold in the UK, with 32 Anytime Fitness gyms already open for business across Blighty. And one added cost benefit is that the franchisor takes a flat monthly royalty, whereas most charge a percentage of revenues. “Our flat royalty is great because it favours the franchisee – however much you grow, you still pay us the same. Whereas, traditionally in franchising, the more you grow, the more the franchisor makes,” explains Runyon. Though the benefits for the franchisee are Summer 2014 elitefranchise 21

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THE ELITE INTERVIEW

obvious, the motivation is less clear for Anytime Fitness to operate this model. Will the franchisor support franchisees in the best possible way if they aren’t getting a bigger slice of the pie? “All of our growth is predicated on happy franchisees who are successful, because if you’re thinking about becoming an owner you’re going to call or visit some of our current franchisees. If they say bad things you won’t buy. If our unit-level performance isn’t good, we would have stopped growing many years ago,” says Runyon. The key to successful franchising is putting the franchisee first, he adds. “I equate being a great franchisor to being a great host. I want to make sure they eat first, that they’re being entertained. As a host I eat last – it’s the same when you’re a franchisor.” That’s not to say that there haven’t been mistakes along the way. Runyon will freely admit that in their haste to roll out the Anytime Fitness model, they made some sacrifices. “As an entrepreneur, you often have to choose speed or execution. And we often chose speed. And it’s helped us: in 12 years we’ve opened 2,500 clubs. It’s pretty remarkable, but sometimes you make sacrifices to grow that quickly,” Runyon explains. Those mistakes have included selling too big a territory to a master franchisee or just selling franchises to the wrong people. But in the 12 years since the business’s inception, Runyon and his team have got better at evaluating potential franchise owners. Franchisees need to be judged on more than their bank balance, he says. “What’s different in our industry is that success isn’t determined by your net worth, it’s not your credit score. This is a people skills business that requires leadership and coaching and empathy. Judging people on emotional intelligence can be tough but we’ve built the system around the sales process so we’re a little better at it,” claims Runyon. While global expansion continues apace – there are currently 600 Anytime Fitness clubs in Australia alone – Runyon also has an eye on the future of technology’s role in fitness. Anytime Fitness members in the US have access to Anytime Health, which allows them to track calories, activities and be mentored by personal trainers and other members of the

community online. Anytime Health will soon be rolled out on an international basis, promises Runyon. The entrepreneur’s personal goals stretch well beyond building a profitable franchise. “How do we get people more active? It’s not about vanity, it’s about healthcare costs; it’s about having a more active and a more vibrant society. Reaching beyond bricks and mortar is a tremendous opportunity for us to engage with our consumers on a different playing field,” he says. After all, Runyon is playing the long game. For while the gongs continue to take up space on the mantlepiece and

This is a people skills business that requires leadership and coaching and empathy

Runyon cuts purple ribbons at new clubs across the globe, the true test is longevity. “As a leader, I have to worry about how are we going to look in 2018 and whether we’re still going to be competitive in 2020. Curves was huge but now it’s fallen on hard times,” says Runyon. “We can’t be another Curves.” “We’re the first fitness brand to rank number one in the 35 years since Entrepreneur magazine’s Franchise 500 started. We’re also the youngest at 12 years. If you look at the top ten, the others have been around for 40 or or 50 years. So although we’re very proud of our 12 years, let’s do another 12. Everyone can maybe do a ten-year run. Can we do a 20-year run or a 30-year run? Am I the guy for that? I don’t really know but I hope so.”

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01/07/2014 22:44

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28/02/2014 19:22

ADVERTISING FEATURE

Delivering promises and profits Y

ou’ve found your product, found your market and then created an all balls and whistles website. You’ve SEO’d and PPC’d to the nines and then – only then – do you think about delivery – which is when it can go horribly wrong. Suddenly your dream of running your online empire is caught up in fulfilment nightmares that you just didn’t budget for. Diamond Logistics’ partners help businesses deliver their promises and profits with clever one stop logistics. Founded in 1992 by awardwinning entrepreneur Kate Lester, and her board of Daniel Allin, Sandra Robinson and Matt Waple, it has grown from a successful local courier company alongside which Kate ran a thriving logistics consultancy until the team embarked on a major franchise expansion programme in 2012. With fifteen franchise depots now operating, Diamond has already secured the position

With 78% of lost clients who do not repeat purchase from online sites quoting poor delivery as the main reason, the delivery is often the last thing that should be considered when it really should be the first. This is where Diamond Logistics comes in

as the third largest courier company (in terms of geographical coverage) in the UK. The UK wide reach now means the growing ability of new business start-ups to access the one stop logistics solutions that can liberate entrepreneurs from potential logistics nightmares. By encouraging companies to think of their logistics as the backbone of their operation rather than taking a last minute approach, people can focus on their business rather than effectively running a mini logistics company. Diamond partners with their clients, delivering not just logistics but a healthier bottom line for them. ‘We see ourselves as part of the team, sorting out their delivery needs so that they can concentrate on what they are good at – sourcing or making and selling their products, and focusing on that all important profit,” explains Lester. Diamond’s clients’ success speaks for

company’s ability to deliver. As Lara Bishop of Corporate Baby, a company that creates unique and practical gifts to celebrate deliveries of a slightly different nature, explains, ‘When we were choosing a logistics provider we wanted a company with that shared our excellent customer service principles and it was comforting that Diamond could provide that for us. We are growing very fast and we look forward to increasing our output without having to worry about the logistics at all, as Diamond is totally responsive and reliable’. With a target of 60 new sites by close of 2015 there’s exciting opportunities for logistics professionals wanting to start their own business under the Diamond umbrella. The Diamond franchise model keeps entry level costs effective. It firmly believes there is no need to spend a fortune to make one, so start-up fees and commissions are very reasonable. It is the only courier franchise that offers the full service profile in same day, next day, overnight and international consignments from parcels to pallets plus storage, with minimal capital expenditure and a proven profit record. Ideal Diamond candidates need to be

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ADVERTISING FEATURE

When we were choosing a logistics provider we wanted a company with that shared our excellent customer service principles Lara Bishop, Corporate Baby

motivated, enthusiastic and determined. You’ll also need to be friendly and personable, agree with our ethics and be willing to reflect what the respected Diamond brand stands for. Logistics or courier experience is ideal. New franchises seem absolutely thrilled with their new businesses. ‘I’ve come from a background of logistics recruitment and already have a great lifestyle and great income,” says Julian, who has secured the lucrative B postcodes. “However I really saw the opportunity in the Diamond franchise and

wanted to build a sustainable business which was going to enable me to build a multi million pound turnover in my area. “The training was comprehensive, the support has been great and really hands on. And most importantly their sales methodology works. Just follow the plan, make the calls, do what you say you are going to and it works. I have doubled my initial projections based on what I have achieved so far. Diamond supports the ambitious and I feel like I have the best of both worlds – the support of the high calibre HQ team yet my own independence’.” And Steve Nash, who has taken on Sheffield, comments: ‘I started my depot only this year and I can quite honestly say it’s the best thing I’ve done. I am absolutely loving it. My previous job was on the other side of logistics – selling forklifts to warehouses – and I was sick of making money for someone else and my efforts going unrewarded. It was a leap to invest in something like this but in only a few short months I have busy collection rounds, a new ops team and have already had to expand my

premises. Diamond is friendly, professional and supportive yet give is me enough independence to make my own decisions. I can’t recommend it highly enough’. The franchises are low cost, high profit adaptable business models that allow for the natural ebb and flow of business, both annually and seasonally. The unique minimal capital expenditure model means that overheads are kept low and franchises operate with efficiency. In under 18 months, if following the Mastermind Programme, franchisees are expected to establish an annual turnover of at least £1m in their areas, if not considerably more, from which they draw a healthy commission. So whether you need to find an expert partner to relieve your company of the burden of onerous logistics or if you fancy getting stuck into the thick of it by securing a once in a lifetime opportunity to establish a Diamond’s franchise, check out Diamond Logistics at reallygoodcouriers.com.

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01/07/2014 22:24

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 Why consider a commercial cleaning franchise? Franchise commercial cleaning is one of the fastest growing segments of the industry. Over the past ten years, total revenue has increased by 66%. It is also a relatively low-cost franchise option, and because commercial facilities must always be well maintained, it is largely a ‘recession resistant’ franchise segment. 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 six consecutive years, 2008-2014.

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Commercial Cleaning with a Difference

To learn more about JAN-PRO, please visit: www.jan-pro.com/centrallondon or email phil.ryan@jan-pro.com

28/02/2014 19:47

ONE TO WATCH

Wok & Go’s fresh take on noodles and franchising is winning new fans at home and abroad

WORDS: ADAM PESCOD

here’s no doubting that the USA is responsible for the bulk of fast-food concepts on these shores. Whilst McDonald’s and Subway sit atop the market, they have also given rise to a new generation of franchises looking for a slice of the action. For Des Pheby, managing director of Wok & Go, the noodle franchise, a trip across the pond was enough to convince him to have a shot. As he explains, it was a piece of pop culture that proved the clincher. “You always see the characters in US sitcoms eating out of these American-style noodle boxes – but we didn’t have them in the UK at the time.” Pheby took his first foray into the world of catering after being made redundant from his previous role: a financial analyst for a logistics firm. “I was looking for something different to do so I moved into catering,” he says. However, running an independent coffee and sandwich shop wasn’t sustainable at a time when the likes of Starbucks and Costa were starting to dominate the market in the UK. Prior to his holiday to the United States, Pheby had come across a small noodle bar in High Wycombe, where he was living at the time. “It was always in the back of my mind,” he admits. The seed for Wok & Go was sown. Despite the first restaurant being launched in Chester in 2008, Wok & Go is only now starting to attract the attention of the franchise community in the UK and beyond. “We’ve stayed under the radar for a while, almost intentionally really, because we’ve obviously stayed out of London,” Pheby says. And the fact that it was entirely self-funded also had a part to play. “I have put everything I have into the business,” he adds. “There’s no outside funding, there’s no private equity partner, there’s no bank-funding.” Summer 2014 elitefranchise 27

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01/07/2014 22:48

ONE TO WATCH

I like to describe it as an oriental version of Subway Des Pheby, Wok & Go

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But as any entrepreneur will attest, your own money can only get you so far when you’ve got your eyes set on rapid growth. After spending two years drumming up trade in its initial outlets, franchising eventually became a necessity for Pheby’s fledgling noodle brand. He stresses, however, that it’s not the ‘easier option’ that many people make it out to be. “Our business model itself lends itself very well to franchising so it seemed a bit of a no-brainer but the franchising has been challenging,” Pheby admits. “Everyone seems to think it is an easy route to business growth and financial security – but it’s not. It’s probably more complicated in the early stages than opening your own stores because you are managing other people’s expectations.” Pheby adds that he was unwilling to dive head first into franchising until he was sure he had a concept with legs. “When I opened the first Wok & Go, I didn’t know how well it was going to do,” he explains. “Opening up in Chester, even close friends were saying ‘who’s going to buy noodles at lunchtime?’ They couldn’t quite get their head around the fact that it’s not a full-blown Chinese; it’s noodles in a box. But it actually lends itself very well to lunchtime trade.” Whilst he’s keen to stress that Wok & Go is far from being an exclusively lunchtime proposition – almost all of the stores open at 11am and close at 11pm with an even split between daytime and evening trade – Pheby admits that the convenience of the Wok & Go offering stands it in good stead. This is particularly true of the franchises that offer a delivery service, with office workers and students the main sources of custom. “It is very popular for people who eat at their desk because it comes in very well-insulated boxes so the food stays hot for a long time,” Pheby explains. “Students are the least likely to want to do washing-up so it’s very popular with them as well,” he laughs. Of course, convenience counts for nothing if the food doesn’t stack up. Needless to say, Pheby believes that Wok & Go’s focus on fresh ingredients and customisation puts it heads and shoulders above its closest rivals. “I like to describe it as an oriental version of Subway,” he says. “If you go into one of our shops, it’s a very simple menu, it’s easy to order and it’s got an easy pricing structure.”

01/07/2014 22:48

ONE TO WATCH

He adds: “There’s no buffet, there’s no preprepared food and there are no microwaves. With people getting more health-conscious and savvy about what they’re eating, it ticks a lot of boxes.” There’s innovation in Wok & Go’s franchise offering too. Whilst the firm offers a traditional franchise model, it has also rolled out what it calls a ‘managed’ franchise agreement. As part of this deal, a franchisee owns the franchise but pass the day-to-day running back to Wok & Go, meaning the franchisee essentially takes on the role of an investor. Whilst one may argue this is contrary to the essence of franchising, Pheby believes it still sticks to the basic premise, with uptake so far proving it to be an attractive option for many. “It is popular for people who are already working – whether that’s owning another business or in a full-time job – and are really just looking for a supplementary income or investment.” It also means that prior restaurant experience isn’t an essential requirement for franchisees. A third Wok & Go model follows the ‘managed’ agreement but includes a guaranteed return of £15,000 in the first year, £30,000 in the second year and £40,000 in the third. Pheby explains that whilst this is only available to certain franchisees, it’s something that can work well for both parties. “It’s not for everyone but it’s quite flexible and sets us apart,” he says. “We are comfortable offering it because we know our business model and the kind of returns that can be expected on it.” Wok & Go now has its sights set firmly on London and the south east where it hopes to open a number of new stores, as well as additional outlets in its northern homeland.

Franchising is going to be a massive part of what we’re doing Des Pheby, Wok & Go

Having received enquiries aplenty at a British Franchise Association (bfa) event at Olympia in March, Pheby is optimistic about the growth prospects. “We are quite confident we will open another 20 new stores in the next 12 months,” he says. “Going forward, we think that’s a good number for us to aim for.” Pheby goes on to say that three quarters of Wok & Go stores will soon be franchises, with the remaining quarter company-owned. “Franchising is going to be a massive part of what we’re doing,” he explains. Having signed a partnership deal with a Kuwaiti company in the early days, further international expansion is also on the cards. With the help of various franchise consultants, Pheby has entered negotiations with potential new partners in Germany, Turkey, India and the USA – and is eyeing more stores across the Middle East thanks to the Kuwait partnership,

which came about from a LinkedIn correspondence. “I was quite fortunate with Kuwait but that was a one-off,” he says. Negotiations with Fransmart – the American consultancy that specialises in restaurant franchises – offers Pheby the chance to buck the trend of US brands setting up shop in Blighty. “It’s interesting because most Joe Publics would only have come across American franchises – it’s quite nice that a UK brand is now getting the opportunity to be taken over the other side of the pond,” he says. Wok & Go certainly appears to have all the facets to be a truly global brand. The simple nature of its product is matched by a name and logo that doesn’t take much explanation. “I think it’s a brand that people will understand wherever you take it,” Pheby concludes. “The way we’ve packaged it up means it’s got the potential to be as big as anything.” Summer 2014 elitefranchise 29

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01/07/2014 22:48

ADVERTISING FEATURE

Every cloud has a silver lining Franchise cost £15,000 + VAT Set up costs £1,000 + VAT

Since its launch in 2010, Cloud Bookkeeping has won Best Growing Franchise sponsored by Lloyds Bank twice, voted for by their own network of franchisees and a panel of franchise industry specialists.

franchisees with marketing, sales, IT, operations and bookkeeping. Our unique Prism process system of workflow templates and checklists helps our bookkeepers and their clients know they are delivering a quality controlled service. The Cloud Bookkeeping franchise has been set up so it can run as a management-style franchise but it is left to the franchisees to determine ith over 20 franchisees across the UK, Cloud Bookkeeping when they are ready to take on processors to do the basic bookkeeping offers bookkeeping services, using the most up-to-date cloud as their business expands. Head office now has a processing centre to software and is growing at a fast pace. The founder Mandy support the franchisees as they grow so that they do not have to take on Bagot, a qualified certified accountant, who trained their own employees. in both industry and practice, is a cloud technology The franchisees all get together for quarterly Our 6 franchise enthusiast, researching and developing new cloud development days at head office where they have products for her Cloud Bookkeeping franchisees on sales training and representatives manuals and 10 day seminars to use themselves and to offer to their clients. “This from the software companies come in to show training programme them the latest updates and then they all go to gives us an edge over our competitors,” says Bagot. “With the ever changing cloud solutions we have dinner together afterwards. helps our new to keep on our toes and ensure we are aware of all the latest bookkeeping software on the market franchisees with and that we do not need to turn work away. This marketing, sales, makes us attractive to potential clients and is one of our USP’s. We also work closely with the software IT, operations and companies. We are launching our new website bookkeeping comparethecloudsoftware.com to help clients with their cloud solution decision making and to show them what is available at a price they can afford. People who join our franchise do not need to be qualified bookkeepers because we give full training. They just need to like numbers, be analytical and have an avid attention to detail, like to solve puzzles and want to meet business owners at business breakfast meetings. Our six franchise manuals and ten day training programme helps our new

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01/07/2014 22:25

ADVERTISING FEATURE

Case Study Damien Cassidy – franchisee, Solihull Cassidy had spent over 25 years as an internal auditor with the National Grid when a re-organisation was announced; he decided it was a good time to reassess his career. He came across an article about franchising whilst on a flight to Belfast to visit family. He liked the idea of starting his own business within an established structure and with support and decided to look into it more. Cassidy started looking for franchise opportunities that would let him be his own boss and improve his work–life balance. “I actually looked at a few different franchise businesses,” says Cassidy. “My wife is a qualified nurse, so this included care homes and domiciliary care.” Cassidy attended a franchise exhibition at the Birmingham NEC. It was there that he met Mandy Bagot, Cloud Bookkeeping’s founder, for the first time. Cassidy was immediately impressed by Bagot’s enthusiasm and passion for what she does. After taking voluntary redundancy in February 2014, he decided to invest into a Cloud Bookkeeping franchise. Why did Cassidy choose Cloud Bookkeeping? He explains: “From day one I’ve found Mandy and her team to be incredibly supportive. And that’s matched by the training and support materials Cloud Bookkeeping you receive, like the Prism process templates. clearly put a big It makes running your emphasis on business so much easier, and the cutting-edge providing a firsttechnology is also a really class service, good selling point to and that’s very clients.” Like many Cloud important to me Bookkeeping business owners, Cassidy recognised a dedication to service that sets the brand apart from its competitors: “Its appeal wasn’t just that I had a background working with numbers. They clearly put a big emphasis on providing a first-class service, and that’s very important to me. I want to make a difference to my clients.” Although Cassidy only launched his Solihull-based Cloud Bookkeeping business in March, he has already landed his first clients. And he has no doubts that becoming his own boss was the right decision. He concludes: “I knew I wanted to buy into an established name with a proven track record. Cloud Bookkeeping has all this and more. I’m already starting to see the benefits of the Cloud model and, although it’s still early days, I’m confident I’ll be able to achieve the work-life balance I’ve been seeking. “Which hopefully means more time at home and getting to watch a lot more cricket!”

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01/07/2014 22:25

ANALYSIS

Setting the standard For a brand looking to build a successful franchise on these shores, the importance of its first franchisee can’t be underestimated. Putting in the hours to pick the best person is therefore time well spent

WORDS: ADAM PESCOD

aking the plunge into franchising is a daunting prospect. Whilst it’s the ideal way to grow one’s business at a pace that may not otherwise be possible, it doesn’t come short of challenges. One thing that’s sure to test new franchisors more than anything else is the hunt for quality franchisees. Given that they’ll be serving as the friendly face of your brand in neighbourhoods across the country – and hopefully generating some profit too – getting the best people on board is absolutely pivotal. In terms of knowing what sort of person is the best fit for your franchise, the individual or individuals you turn to first can serve as a fairly useful marker. Granted they may have ticked all of the boxes on a specification document but there’ll be other qualities that made them the ideal candidate and an example for every other franchisee to follow. What better way to demonstrate the importance of getting the first franchisee right than by hearing it from those who have been there and done it already?

Franchisees will be representing your brand, therefore a shared ethos is essential Ken Deary, Right at Home UK

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01/07/2014 22:51

ANALYSIS

Dunkin’ Donuts

It’s been 20 years in the making but Dunkin’Donuts – the American donut and coffee chain – finally landed back on British soil late last year. The company has set its sights on 150 openings across the UK in the next five years as it looks to take on the other big players in the donut and coffee arenas. Harrow in north London provided the backdrop for the first of a new wave of Dunkin’ Donut outlets. It’s the first of 25 stores that will be opened in the country by DDMG, a partnership between three experienced Dunkin’ Donuts franchisees from the States and local pair Jignesh Patel and Ketan Patel. As Jim Johnstone, director and general manager of Dunkin’ Brands UK, explains, a successful track record in the sector was an absolute must along with a sizeable amount of capital. “We were looking for people with experience in either retail or QSR (quick service restaurants) – and who also had experience of developing stores at a good pace,” he says. “We are not looking for single operators. We are looking for people who have got plenty of funding and can make an investment in the early years so the payback over the next 15 years of the franchise agreement will be worthwhile.” To reinforce the importance of DDMG to Dunkin’ Donuts’ growth on these shores, the Harrow store will also act as a training base and test site for innovation. “New franchisees coming into the system with their management teams will train with Harrow and any store design or tweaks will be tested in Harrow,” Johnstone says. “They are incredibly good people to have on board from that perspective.” Whilst the Harrow store was first to open, DDMG’s pledge of 25 sites was matched by The Court Group, a consortium chaired by British businessman David Sheepshanks, which has opened outlets in Chelmsford, Cambridge and Woolwich. A third franchisee also opened their first store in Hounslow recently, funding the venture through a sizeable property portfolio. “The first three franchisees are very similar in terms of what they bring to the party,” Johnstone concludes.

Franchisor: Jim Johnstone, director and general manager, Dunkin’ Brands UK

Franchisees: DDMG, (Pictured: Perry Shah, Ram Javia, Neil Patel)

Premier Sport

It takes a certain type of person to train children to become the country’s next sporting stars. For David Batch, chief executive of Premier Sport, a potential franchisee who doesn’t bring a friendly face and positive attitude to the table is unlikely to make the cut. And as demonstrated by the company’s first ever franchisee, a bit of sporting know-how doesn’t go amiss either. Five months after starting the business, Batch turned to Karl Fox, a former professional footballer for Cambridge United, to help start building the Premier Sport brand in the UK. “At that time it was much more of a job-based franchise and Karl had all the relevant coaching qualifications,” says Batch. “But the best thing about Karl was his conscientiousness.” More impressive is the fact that Fox was a mere 18 years of age when he took the reins. Still with the company 15 years later – at 33 – Fox has an additional franchise under his belt and is managing director of one of Premier Education Group’s subsidiary brands, a physical activity scheme called The Golden Mile. “Karl has always believed in the model and not tried to deviate from it. He didn’t try to reinvent the wheel,” says Batch. “The biggest assets I can attribute to Karl are loyalty and trust, as well as belief in the business. Karl realises, as do we, that we can always evolve and improve but we do so in a manner which is more akin to a partnership. If it’s done properly, everyone benefits.” Premier Sport will soon boast more than 100 territories across the UK and Batch believes having the best possible personnel on board from the very start has been absolutely key. “In the early days of being a franchisor, the biggest challenge is having the courage to turn people away,” he says. “Recruiting the right people is always a challenge even now, so I would advise people to talk to other experienced franchisors about their processes and why they have them. You can save yourself a lot of time by getting these processes right – it’s more likely to lead you to the right person first time.”

Franchisor: David Batch, founder and chief executive, Premier Sport

Franchisee: Karl Fox, owner and managing director, Premier Sport North Hertfordshire and East Norfolk

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ANALYSIS

In the early days of being a franchisor, the biggest challenge is having the courage to turn people away David Batch, Premier Sport

Right at Home

Franchisor: Ken Deary, owner and managing director, Right at Home UK

Franchisee: Tim Haigh, owner and managing director, Right at Home Sutton & Epsom

Establishing an overseas brand in the UK is no walk in the park and Right at Home, the elderly care franchise, faced the familiar challenge upon its entry to the British market in 2010. This had a telling impact on the process of finding its first UK franchisee and identifying the necessary attributes. “Despite global presence and being a market-leader in the US, Right at Home was not a recognised brand within the UK,” says Ken Deary, managing director at Right at Home UK. “We were only prepared to engage with a potential franchisee whom was as excited as we were about the opportunity that Right at Home UK presented. Furthermore we were looking to identify key skills such as leadership, communication, innovation and charisma that would inspire like-minded others to enquire about joining our team.” Following a rigorous recruitment process, Right at Home named Tim Haigh, now owner and managing director or Right at Home Sutton and Epsom, as its first franchisee in the UK. Haigh

had previously been head of communications at Reed Elsevier, the multinational publishing and information firm, before deciding to look into the opportunity presented by franchising. Needless to say, he had all the attributes that Deary sought in a first franchisee. “Early discussions indicated that Tim ticked many of the boxes in terms of qualities which we were looking for, such as passion for the industry, making a difference and a great attitude,” says Deary. Haigh has since gone on to become chairman of Right at Home UK’s Franchisee Advisory Council, with his own franchise outstripping initial financial projections. “Tim has been liaising tirelessly with us to further develop the brand and business model and has been a great ambassador for the Right at Home UK brand,” Deary adds. For a franchisee, being on the same wavelength as the franchisor is an essential part of a successful relationship – something that Deary concurs with. “They will be representing your brand, therefore a shared ethos is essential,” he says.

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INTERNATIONAL

Think glocal Adapting a franchise to the expectations and tastes of different markets may be a daunting task. But it is essential if it is to succeed

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INTERNATIONAL

WORDS: JOSH RUSSELL

t one stage it seemed globalisation was a juggernaut the pace of which would never slow, with brands homogenising all cultural difference away from our high streets. However, its progress has slowed in recent years as there has been an increasing understanding that the most successful brands are those that adapt to cultural differences rather than those that bulldoze through them. Glocalisation, where global companies adapt their products and services to the culture in which they are sold, has allowed them to make the most of cultural differences and franchised brands in particular can benefit hugely from the opportunity this presents. With most franchises, it is generally assumed that a fixed and replicable model is the best approach, ensuring that a high quality of service is maintained across the board. But this only goes so far when one is trying to create a brand that will go the distance in a multitude of cultures. “It’s vital for a franchisor to change their franchise operation when they go international,” explains Euan Fraser, founder and managing consultant of AMO Consulting. Daniel Spinath, founder and managing director of Crêpeaffaire, the crêpe franchise, built a multi-local element into its model from the get-go and he feels it is crucial to consider

a franchise’s approach from the perspective of the market it is entering. “While the base model needs to largely be compatible with the host culture, it’s not one size fits all,” he says. Whether it’s product offering or service style, there is always the potential that regional expectations will affect a model’s success. “Trying to sell ham in Saudi Arabia or convince Spanish customers, who are widely used to table service, to come to the till area to place an order isn’t going to work.” And it’s not just food outlets that will find international variations in their consumer base affecting their overall franchise model. “UK clothing retailers who franchise into markets south of the equator face the challenge of clothing people for a different season or changing their sizing for more petite Asian customers and colours for different markets,” says Fraser. However, the degree to which a franchise might be required to tailor their offering to a foreign market may depend, to an extent, on the profile and familiarity that brand has in those markets. “Where the franchisor is well known then they must meet the expectations that customers have experienced when they’ve come across them overseas,” says Fraser. An internationally recognisable brand like

McDonald’s will cater to dietary requirements or preferences to an extent but there will still be a Big Mac on the menu in most countries. “A less well known brand will have no recognition from the customer – so they have to be [more] relevant to that culture,” he continues. “An ice cream retailer must have green tea flavoured ice cream in Japan.” Whilst the nature of the adaptations may be small, the impact they can have is huge. “It’s quite simply the difference between live or die,” says Spinath. “I know of no concept which has successfully conquered a territory while disregarding local habits.” And it’s not just consumers who are likely to be put off by a poorly targeted offering: franchisees operating in the markets are likely to be clued up on what will be well received and what will fail in their territory. “Potential franchisees do their

It’s vital for a franchisor to change their franchise operation when they go international Euan Fraser, AMO Consulting

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INTERNATIONAL

Glocal grinders Subway

homework and are consumers too,” he says. But given that every franchise stacks its success on a watertight model, one would be forgiven for thinking that sometimes there could be a tension between making this replicable and allowing room for regional variation. Fortunately Spinath feels this worry is unfounded. “I see no tension at all as long as the model is inherently scalable to the host culture and there’s an openness to follow consumer insights,” he comments. This is because adapting a franchise will often be a case of making minor revisions rather than throwing out everything out and starting again. “Usually the model is replicable in principle,” says Fraser. “It’s the detail or the delivery mechanism that needs to be changed.” He gives the example of Home Instead; whilst much of its approach was up and running in the States, bringing it to Blighty meant adapting it to fit UK funding and delivery models. “Ultimately the operating systems, controls and branding remained intact,” he continues. “It was the service delivery that was tailored.” The billion ruble question, however, is how one goes about adapting their franchise to

another culture. In short, it cannot be tackled without some ground level understanding of that culture. Fortunately, in selling your first franchise in a new territory you are getting this insight thrown into the bargain. “Basic research needs to be done – then you let the franchisee propose the changes they need,” says Fraser. He previously assisted a US franchisor bring its offering to the UK but only some of the approach was worked out before an agreement was struck for the territory. “I had to look at the UK market for them and explain how it operated,” he explains. “The local franchise system added the detail after the deal was done.” This means that no matter how prepared a franchisor is, it can never guarantee its model will be absolutely perfect before it enters a culture it is unfamiliar with. Fundamentally, if a franchise is going to ensure its offering is properly tailored to a new market, it will require a responsive approach to the market and a preparedness to learn from its missteps. “Do your homework and study the market but be prepared to make mistakes and adjust,” says Spinath. “You will never get it 100% right the first time.”

As the world’s largest restaurant operator, Subway has certainly brought its offering to a lot of new markets and cultures. However it’s unimaginable that it would have reached its current reach without being able to meet its customers expectations each time it entered into a new territory. As with any brand, there has to be a degree of consistency in the Subway range, ensuring customers get a highquality meal irrespective of where they’re based. “The [...] core menu is primarily the same no matter where in the world you are,” explains Peter Mompalao de Piro, PR specialist for Subway for Europe. But this isn’t to say it doesn’t adapt itself to the palates of consumers and cater its offering to best serve its clientele around the globe. “Subway prides itself on honouring local food preferences and adapts its menu and ingredients accordingly.” Plenty of markets have unique tastes that the sandwich franchise has utilised. “The Skagenrora Sub available in Sweden features a unique Swedish creamy fish based product, while in Russia, they favour mushrooms and salmon as ingredients,” says de Piro. Meanwhile in areas such as India, where certain meats might not go down too well, substitutions have been made to better cater to local preferences, boosting the number of chicken and vege subs. “[The menu] includes classic Indian flavours such as the Chicken Tandoori to the more localised Chicken Seekh,” adds de Piro.

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01/07/2014 22:12 11/04/2013 10:30:15

FINANCE

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TRICK OR TREAT? Richard Holden, head of franchising at Lloyds Banking Group, sheds light on how budding franchisees can avoid scams and invest in a genuine business opportunity

he economic recovery is creating new jobs across the UK and the government is reporting a gradual fall in unemployment. Despite this, wage increases are for many still lagging behind inflation and figures show more people are now choosing to be their own boss and start up a new business. Many budding entrepreneurs up and down the country are looking to achieve their dreams by turning their new business ideas into money-making opportunities and generating numerous business opportunities for aspiring owners to buy into. But how can you spot a legitimate business opportunity from a scam? Unfortunately, many websites and classified ads promote what amount to business scams alongside genuine business and franchise opportunities. This makes it tricky for the investor to simply identify a true opportunity with an epidemic of scams looking to take advantage of the aspirations of would-be entrepreneurs. It is not always easy to spot a scam, so to minimise the risk of falling prey to these rogue traders it is absolutely essential to undertake thorough research before embarking on any new business opportunity. There is truth in the old saying â&#x20AC;&#x2DC;if it seems too good to be true, it probably isâ&#x20AC;&#x2122;. Some of the most frequent, rarely proven, claims which should be treated with caution are: Huge profits, no competition, low level investment! Work no more than 20 hours per week and earn ÂŁ50k + per year! Run your own business, no experience needed, money back guaranteed! Earn great profits and do it all from home with total flexibility! No fees, absolute best products available anywhere! The ability to earn a substantial income working from home! Summer 2014 elitefranchise 41

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FINANCE

Franchising is not an easy business option and investors need to go in with their eyes wide open

Spotting a scam

To help would-be business owners navigate what is often a tricky path in the early days of researching new opportunities, these handy guidelines may help:

● If it looks too good to be true, it probably is ● Beware of promises of guaranteed or very

These promised returns rarely materialise and investors can get stuck holding worthless stock they are unable to sell. The fact is that there are no shortcuts to wealth – the only people likely to make money in these situations are the fraudsters. Aspiring business owners need to apply lots of common sense when researching potential business opportunities. A good place to start your search is with fully proven franchise brands that are based on years of experience and a tried and tested business model. There is a reason why well-established franchises are successful – franchising is ultimately the duplication of a proven business model with initial training and ongoing support delivered by the franchisor. In addition to a track record of success, a well-established franchise can also provide the investor with a known brand name, national account contracts and better supplier terms. The advantage of training and support should not be overlooked by budding investors either. Having someone that can share their many years of experience operating a similar business and prevent you from making costly mistakes is a real and significant benefit for any franchise owner. Compare this to the scam option, which often involves the investor parting with significant cash up front for little more than some stock and a manual which gives them limited, if any, instruction. Whether you are looking at a standalone business opportunity

or joining a proven franchise brand, any investment requires thorough research and careful evaluation before you make any significant commitment. One essential piece of research is to speak to as many existing franchisees or investors as possible. It is likely that a franchisor will want to manage that process, so its franchisee network is not bombarded with enquiries from potential investors. But don’t let them cherry pick who you speak to. Try to speak to a selection of franchisees, including some of the best and worst performers to help you determine what is required to make the opportunity work. You may also wish to speak to someone who has recently established their business – they will have just gone through the same process as you so their experience will be invaluable. It is also worth speaking to franchisees who are more established and who have moved past the start-up stage. They will be able to point out some of the pitfalls to avoid and where you can expect your own business to be a few years down the line. Of course, franchising is not right for everyone. For people who value independence or want to run a business without restrictions, franchising might not be the best bet. Franchising is not an easy business option and investors need to go in with their eyes wide open. If you have done your research, considered all the alternatives, taken the right professional guidance and decided that franchising is the best way forward for you, then there is every opportunity to benefit from your chosen franchise for many years to come.

large returns

● Look out for being sold goods or services with little or doubtful value

● Beware of offers to teach you ‘secret’ or

‘exclusive’ techniques for building wealth

● Avoid advertisers who state ‘this is not a pyramid scheme’ or ‘this is totally legal’

● Never be pressured into making decisions about the investment

● Always investigate schemes carefully before you agree to invest

● Avoid fad industries that won’t be around in a few years’ time

● Ensure that you actually visit the head office business premises before you commit

● Always speak to existing investors and thoroughly check all testimonials and references

● Seek independent legal, financial or other

professional advice before parting with any money

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28/02/2014 20:07

ADVERTISING FEATURE

The perfect match Mr Franchise, a matchmaking service for prospective franchisees established in 2012 by Iain Martin and Brian Armstrong, is going from strength to strength. With a company-owned unit operating from Stourbridge, and two franchises in the north west, Martin & Armstrong believe that now is the time to roll out the business nationwide

M Iain Martin, co-founder & director, Mr Franchise

Brian Armstrong, co-founder & director, Mr Franchise

r Franchise’s vision is to establish a network of 50 franchises across the UK, each serving its own community. Each local consultant will provide information on all aspects of franchising (either directly or by referral to others), and will deliver the matchmaking service personally. Unlike other brokerage services operating in the UK, the Mr Franchise business is based on working face-to-face with prospective franchisees, enabling the consultant to build a more complete understanding of a candidate’s attributes and aspirations, leading to a better success-rate when making introductions to franchisors. The methodology used by the business is well proven, and includes an innovative online profiling tool, which has been customised for Mr Franchise. Mr Franchise is now part of the Parable Group, which has business interests around the world, and brings valuable additional expertise and resources to the company. Development plans include recruiting another six to eight franchisees this year, ideally in geographic locations that will give the business a genuine national presence, meaning that marketing can be ramped up accordingly, resulting in a significant increase in candidates profiled and successfully placed with franchisors. David Nelson, who was the ‘founding franchisee’ for Mr Franchise, has been working closely with Martin & Armstrong to refine the business system, particularly the ways in which prospective franchisees are identified through referral marketing. Nelson has a strong background in franchising, having been a Concept Building Solutions franchisee for a number of years. He is passionate about the benefits that franchising can bring to the right individuals if they understand what it means, and get involved with the right franchisor – hence the Mr Franchise vision struck a chord with him. Kathryn Orange, the second franchisee, came on board as a result of going through the Mr Franchise matchmaking process with Nelson. Orange has extensive local community contacts, high level commercial experience, and wanted to be involved in a business which puts something back into the local community – Mr Franchise fits the bill

perfectly for her. One other slightly unusual aspect of the Mr Franchise model is that 2.5% of franchisee revenue is given to local charities; these are chosen by the franchisees, and typically will support young people in particular to fulfil their potential in the workplace. Franchisors pay a fee for the service, once a franchise has been awarded to a candidate introduced by Mr Franchise; in addition, candidates are charged an initial fee to take advantage of the matchmaking service but this is refunded in full when a franchise has been awarded. Therefore, in line with best practice, Mr Franchise receives payment from one party only; thus ensuring that candidates are fully committed to the process, and should they not proceed for any reason, the consultant receives some reimbursement for time and effort expended. Whenever the business is discussed with those involved with creating new business at the local level, they are, almost without exception, surprised that this type of service has not been provided before, and have welcomed it with open arms. The focus is very much one of reaching out to those who aspire to be self-employed and, through education, guiding them towards franchising, if that’s going to be the best option for them. The future certainly looks good for Mr Franchise, and its growing network of franchisees.

The focus is very much one of reaching out to those who aspire to be selfemployed

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01/07/2014 22:29

Become a franchise Matchmaker Business Ownership Made Easy

With the desire of individuals to take control of their own lives, business ownership has never been more popular, and acquiring a franchise represents a low-risk way to achieve this goal. The challenge is knowing which one... This is where Mr Franchise comes in. Our matchmaking model is now proven, and with franchisees operating in Cheshire and Lancashire, Mr Franchise is ready to offer suitably qualified individuals the opportunity to become one of our local franchise directors. If this is for you, you are likely to be well-connected in your local community, enjoy meeting people and networking, have good commercial experience, and want to run a homebased business where you control your diary. Total investment is under ÂŁ25,000, but you will need additional funds to cover living costs until your business becomes established. Contact Mr Franchise today for a copy of our prospectus, and to find out how you can help others achieve franchising success.

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SALES & MARKETING

MAKING FRANCHISES SOCIAL Cracking social media is a challenge for any business, but for franchises it presents particular issues regarding brand consistency and management

eveloping a social media presence has become a â&#x20AC;&#x2DC;must doâ&#x20AC;&#x2122; project for businesses of all varieties. Sites such as Facebook, Twitter, LinkedIn and YouTube offer so many possibilities, as well as global reach, either for free or at a negligible cost, that they are simply too good to be ignored. However, while the online world still offers similar benefits for franchising businesses, there are unique challenges to overcome. Franchises depend on maintaining brand consistency across every single one of their operations. While franchisees may indeed possess some independence, they still must operate within the parameters set out by the franchisor. Management is controlled and categorised, and this type of controlled regimen seems to jar with the fast, free and spontaneous world of social media.

BEING OPEN

For all businesses there are lessons to remember when engaging on Facebook and Twitter. Firstly, they are primarily public forums and items posted can have enormous reach. Typically, users like people to behave in a transparent, honest and useful way. They can react badly if they feel someone is trying to pull the wool over their eyes or abuse their trust. Furthermore, businesses can become spectacularly unstuck if they attempt to oversell their propositions.

WORDS: JON CARD

CHOOSING THE RIGHT NETWORK

Franchises have moved tentatively into this arena and there have been some great successes. Barking Mad, established in 2000, provides an alternative to kennels for dog owners who are going on holiday. Instead, pets go to a home with a dog-lover who replicates the animalâ&#x20AC;&#x2122;s normal routine, meaning the

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SALES & MARKETING

animal returns ‘happy and not smelling of kennels’. In many ways, Barking Mad is an ideal business to be on social media, because if the public like to do anything online it’s sharing pictures of animals. “The main network we use is Facebook; it lends itself well to people who want to share pictures of dogs,” says Barking Mad founder Richard Dancy. Dancy says social media has brought in new business and a significant amount of new franchisees, so much so that it has become the company’s primary channel. “We only began using social media two years ago and it is now the most significant way we promote the business,” he says.

COMMUNITY

Users of social media groups are often very passionate about their interests. As a result, the community can guard against those who attempt to hijack them or that become abusive. Similarly, they can drive positive behaviour. Barking Mad has found that the community aspect of social media is very important. Although Dancy was initially concerned about the openness of Facebook groups, since then his fears have been allayed. “We worried that we would be opening ourselves up to abuse, but that hasn’t happened,” he says. “We haven’t had many negative comments but, when we do, everyone else answers them for us.”

TRAINING

For many people, social media is a part of their everyday lives but for a significant part of the population it is still something quite new and an area which they are wary about. For Dancy, helping his franchisees understand the nature of social media has been one of his biggest challenges. “The biggest issue for us has been people not understanding how social media works or what potential it has. We now provide training to all our franchisees. Sometimes you are waiting for that ‘light bulb’ moment when they get it.” Franchises that want to utilise social media should be aiming to bring it formally into their training and support network. This is then an opportunity, not only to help franchisees understand, but also to learn what is acceptable. Sharon Bassett is co-founder of children’s sports coaching business A-Star Sports. The company promotes the business across a range of social media networks but this takes both time and planning, says Bassett. “We have a mixed model when it comes to managing social media, based on how supportive the networks themselves are and the direct benefit to franchisees. To support franchisees in the use of social media, we have a detailed brand guide, training materials and online one-to-one support,” explains Bassett.

Sharon Bassett, cofounder, A-Star Sports

Richard Dancy, founder, Barking Mad

PARENT-CHILD

In order to get the most out of its social media, A-Star Sports has begun using Facebook’s parent-child framework, which enables businesses to create a ‘parent page’ with full administration powers, and then child pages for each of its locations. “Last year we faced two challenges – how to ensure brand control and consistency across an increasing number of business pages and how to keep our franchisees at the forefront of effective practice,” says Bassett. “We discovered Facebook’s ‘parent-child’ development and sought support in transferring current endeavours into this structure, which is specifically designed for franchise businesses but not well-known in the UK.” The transfer was “delving into the unknown” for Bassett, however it has now transformed the company’s Facebook interactions. “Effectively, this means that the franchisor can have brand control and manage national campaigns, as well as giving franchisees the freedom to post local news and offers and interact directly with their local market,” comments Bassett.

RESULTS

Social media is no quick fix and does require considerable time and effort. Dancy says he is considering employing another person to work on it, whereas Bassett says it’s a part of her daily routine. Crucially, though, both Barking Mad and A-Star Sports say their recent social media work has had a major impact on their bottom line. “Facebook referrals to our website have increased almost three-fold when compared to the same period last year. All prospective franchisees check us out on social media and it’s always a talking point at our first meeting,” says Bassett. Similarly, Dancy has seen a surge in business referrals. “We are getting regular customer inquiries via Facebook and we sold one franchise via LinkedIn. We made 24 franchise sales altogether last year, which is a record, so it has certainly been effective.” Summer 2014 elitefranchise 47

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In the business of business development

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PEOPLE

Crossing over

WORDS: JOSH RUSSELL

Allowing employees to buy into a franchise can have huge benefits for all involved

inding the best franchisees for your franchise can involve an awful lot of legwork, from running ad campaigns to attending trade shows and events. And, even after you have found the right candidate, there is still a good deal of work to be done training up and familiarising newcomers with your model. Fortunately, for a franchise there is a source of franchisees that often goes untapped: its employees. Whether someone is an employee or a newcomer to the brand, the motivations for buying a franchise are often the same. “They want the freedom of running their own business without having to go it alone,” says Chris Clarke, national franchise manager of Ringtons, the tea and coffee franchise. However, there are a couple of key differences that might make an employee more confident about putting their money on the line. “The employee has already had the opportunity to look at the business from an insider’s perspective,” he continues. “They know what they are dealing with.” But it’s not just familiarity with the workings of a company that can encourage employees to become franchisees: they’ve also seen first hand the rewards that other franchisees have secured by buying into the company. “It comes about naturally because they see the benefits that it can bring,” explains Brian Whitford, head of marketing at Bartercard, the bartering business marketplace. Taking on employees as franchisees can offer franchises the best of both worlds. Compared to your average franchisee, a former employee will take far less time to bring up to speed as they will have already learnt a lot of the business’s fundamentals. “They know the product, service and people before they start,” says Phil Harrison, national franchise manager of EnviroVent, the sustainable ventilation supplier. “They also know the company’s core values and mission, so there is a trust that is already present that has been built up over many years.” Summer 2014 elitefranchise 49

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PEOPLE

Whilst there is still a huge amount to learn for anyone taking on their first franchise, having spent so much time steeped in the company’s culture, brand values and practices means employees are already one step ahead of other franchisees. “It makes a huge difference if they’ve already got the knowledge of how the business works,” explains Whitford. On the flip-side, as a stakeholder, any franchisee is likely to be more committed to the business than the average employee. Given the fact that they’ve had to make a sizeable investment up front and that any returns they make will be based on their own efforts, it’s safe to assume that moving from employee to franchisee will boost an individual’s engagement. “Employees who become franchise owners are committed enough and believe in the business model enough to invest money into it,” comments Clarke. “Once the business is in their own hands, making the business a success is as beneficial to them as it is to us.” That’s not to say there aren’t difficulties involved. “There are plenty of challenges when going from an employee to a self-employed person,” Whitford comments. But whilst learning how to handle payroll or VAT is always going to take a reasonable amount of effort on the part of a new business owner, an employee-turned-franchisee still has less to take on than someone coming in afresh. “When you’ve been employed by the company that you’re going to buy the franchise from, it actually dramatically reduces the challenges you’ve got because you know the business, you know the people, you get support much easier,” he says. However, despite the learning curve involved, taking on employees as franchisees can have huge benefits for a business. Before a franchise agreement has even been signed, the franchisor has plenty of evidence how well the potential franchisee can follow the business’s best practice. “As a franchisor you know exactly what you’re getting so there are no nasty surprises,” explains Harrison. This means that entrusting them with the franchise’s brand is a surefire bet. “With an existing employee, we already know that we can trust them to make the business a success,” Clarke says. And, given their familiarity with the business, this is far from a one-way street, with employee-cum-franchisees also benefitting hugely from the relationship. “It’s a win-win for both parties,” he concludes.

It makes a huge difference if they’ve already got the knowledge of how the business works Brian Whitford, Bartercard

Graham Symes

Charlie Bisby

I had never considered running my own business because I never thought I had it in me. Chris (Clarke) told me I would be able to double my wages by taking the franchise [...] He was certainly proven right. I launched the pilot franchise and didn’t receive any additional training as I already knew the business model quite well from being an employee. As a franchisee, you have to look after the books, cash up and log it so there is a lot more involved than when you are just a driver for the company; you’re put in charge of your own destiny. By putting the hours in and not cutting corners, you get results [...] The team at Ringtons are honest and upfront and always there when you need them so I feel fully supported. Having your own stake in the business is rewarding if you are prepared to put in the hard work.

The prospect of becoming an EnviroVent franchisee was something that I had already been thinking about for a while [...] As a director of EnviroVent, taking the step to run my own company, doing something I was passionate about and enjoyed, was a natural progression for me. The transition was relatively easy, as I was already familiar with EnviroVent and its products. Yes, being an employee smoothed the way, as I already knew how the business operated; however, what I would say is that every franchisee (new or old) receives training and full support from a designated in-house team. It has made me become more focused and aware of potential opportunities on a daily basis. I’m really pleased that I took the step, in fact I don’t think I’ll ever look back. My business is thriving and I’m really enjoying it.

Ringtons

EnviroVent

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Do you dream of being your own boss? Would you like to make a difference to other people?

Are you interested in building a solid business and being part of a successful franchise network? Ever thought of a management franchise in the Home Care industry? What we offer Long term opportunity in a growing market sector Attractive income potential Competitive franchise fee and monthly service fee Financially and personally rewarding business

We have A proven track record A reputation for excellence Highly skilled and dedicated support team

Franchise Fee ÂŁ32,950 + VAT Build your business with our proven system. We will be there to support you every step of the way. Call us today! 01903 266 392 www.caremarkfranchises.com email: franchise@caremark.co.uk

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ADVERTISING FEATURE

Taking care of business Trevor Brocklebank appears as home care ambassador at Health + Care Event

revor Brocklebank, CEO and co-founder Home Instead Senior Care, the awardwinning care franchise, was the home care ambassador for this year’s Health + Care Event, held in London last week (June 25-26). The event welcomed more than 7,000 health and social care professionals and campaigners who were brought together to share learning and best practice. During the event over 300 speakers, including Brocklebank, delivered live debates, case studies and keynote sessions on a wide range of health and social care issues. Brocklebank joined a ‘who’s who’ line up of speakers including the Norman Lamb MP, Jeremy Hunt MP and Andy Burnham MP. His invitation to be the face of home care and speak at this year’s event followed a speaker session delivered at last year’s event. Having founded Home Instead Senior Care in 2006, Brocklebank is now recognised for challenging the way care is delivered in the UK and is admired for his company’s approach to home care. Home Instead has over 150 franchise offices throughout the UK which specialise in providing non-medical care services to older people to allow them to continue to live independently in their own homes. By focusing on relationship-led care, the company offers a very different approach to the taskbased, short call duration services associated with most traditional home care providers. Care services are tailored to the client’s individual needs, with a minimum of one hour duration for each visit to allow the caregivers enough time to provide quality care and also develop a strong relationship with the client. As a well-respected businessman and

“The work we do, day in day out, is improving the lives of elderly people” Trevor Brocklebank, Home Instead

champion of elderly care issues, Brocklebank is very much in demand for his views on both the franchise sector and the care industry. Speaking at the Health + Care Event, Brocklebank looked at raising the quality of care in challenging times. He urged his audience to focus on a quality care service which focuses on the needs of each individual client and where there is no place for rushed, short duration care visits. He also spoke of the need to charge a realistic hourly rate in order to be able to support carers, pay them fairly properly train them, and retain them. Brocklebank urged health care commissioners and social care commissioners to work collaboratively to achieve an integrated approach. “The event gave me a great opportunity to get our message across about the need for the care sector to embrace change,” said Brocklebank. “The work we do, day in day out, is improving the lives of elderly people – assuring their health and wellbeing and bringing peace of mind to their families. Our model of delivering care is built around achieving this and the more we can spread the word that

there is a better way of delivering care, the better.” Home Instead is renowned for quality and has won many franchise and care awards, including the bfa HSBC Franchisor of the Year, Overall Best Franchise in the Smith & Henderson Awards and has been recognised for achieving 5 Star Franchisee Satisfaction. The company has also been named as the number one provider for quality elderly care for the 4th time in the Laing & Buisson’s latest Care Compliance Monitor and won the National Home Care Co-Ordinator Award at the prestigious Great British Care Awards. Home Instead Senior Care is a management franchise and no care experience is needed as full training is provided. With territories available across the UK, it is a fantastic opportunity for people interested in running their own successful business, while also making a difference in their local community at the same time. For more information about a franchise with Home Instead Senior Care please contact Rachel Woods on 01925 732460 or email franchiseinfo@homeinstead.co.uk

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As a business opportunity, OURS IS MORE REWARDING THAN MOST

Which would you find more rewarding? Making money or making a real difference to someoneâ&#x20AC;&#x2122;s life? Why choose? With a Home Instead Senior Care franchise, you can do both! Home Instead Senior Care specialise in the delivery of the highest quality, non medical care for older people in their own homes. As a Home Instead Senior Care franchise owner, you can make the most of the opportunity to build a market leading, profitable business, while helping people live a better quality of life. You will benefit from the award-winning support of the Home Instead Senior Care franchise team and a rapidly growing demand for our services. No previous care experience is necessary. All you need is a head for business, great people skills, lots of drive and a determination to succeed.

1,000 franchise offices worldwide in over 18 countries Over 150 UK franchises Achievable turnover in excess of ÂŁ1m in under 3 years. 15% net profit High demand for a valuable service Management franchise with huge potential Finance available from our banking partners

There are UK geographical territories available now. Get in touch to find out more on 01925

732460 or email franchiseinfo@homeinstead.co.uk

www.homeinstead.co.uk/franchise Award winning providers of specialised, highest quality non medical care for older people in their own homes. *Laing and Buisson Care Compliance Monitor Report

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www.leathesprior.co.uk/services/business/franchising

LEGAL

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LEGAL

By the book Franchising in the UK may not be governed by law but an ethical approach is the least that should be expected of a franchisor, says Ed Savory, partner at Leathes Prior

There should be no place in the UK’s franchising industry for aggressive, bully-boy tactics

n the UK, franchising is an unregulated industry, unlike in the US and Australia, for example, which have franchising laws and codes. This means that, provided franchise networks are operated lawfully, franchisors and franchisees are to a large extent at liberty to agree commercial terms between themselves. In a very British way, this provides a liberal and flexible platform for franchised and licensed operations to flourish without having to cut through too much red tape and incur eye-wateringly expensive legal fees. Members of the British Franchise Association (bfa) are required to comply with the Code of Ethics. The code is more than just a set of rules and provides the very basis from which any ethical business format franchise should operate. Whilst the code has no formal legal standing, the courts have recognised that the code “provides a good indication of what is to be regarded as fair practice in the industry” (Drivertime case, 2004) and so both members and non-members of the bfa are likely to be judged by its standards. Therefore, it might be useful to remind ourselves of some of the key provisions within the Code of Ethics that governs the terms of any franchise agreement.

Minimum performance obligations

Improving performance is all about the carrot and the stick. On the one hand, a franchisor seeks to

encourage a franchisee’s performance in order to increase the royalties – often referred to as management service fees – it receives. These royalties are often based on a percentage of the franchisee’s turnover. As the turnover grows, the franchisor receives more but the franchisee’s profit margin should increase with the net effect that the franchisee also becomes more profitable. On the other hand, the franchisor likes to have the ability to deter a franchisee from performing poorly. Quite often this is in the form of minimum performance obligations which, if not achieved, give rise to a franchisor having the right to remove exclusivity from a territory, reduce the size of a territory and/or terminate the franchise agreement. The Code requires that any performance obligations must be by reference to the performance of other franchisees operating within the network. Any minimum performance obligation must be reasonable. Whilst the bfa is reluctant to prescribe what is reasonable it is generally accepted that the benchmark is 70% of the average turnover of franchisees within the network who have been operating for at least 12 months.

Limitations of liability

In any commercial contract parties are always keen to limit their liability to the greatest extent possible. A franchisor provides a standard form agreement so it is very tempting for it to ensure that its liability is limited to the Summer 2014 elitefranchise 55

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maximum level that can be achieved but that the franchisee is actually liable to the greatest extent possible. There have been some recent examples of franchise agreements that really have, in my opinion, completely overstepped the mark. For example, a franchise agreement included a clause that stated that the franchisor’s maximum liability owed to the franchisee shall be limited to the total amount of management service fees it has received in the previous 12 months to the breach. It might seem that there is good commercial sense to being able to ascertain the franchisor’s maximum liability. However, one of the most common bones of contention within any franchised business is in connection with misrepresentation where the franchisee alleges that the franchisor has misrepresented the business opportunity to the franchisee. If the franchisee is successful in bringing such a claim then one remedy available to the courts is to put the parties back in the position they were in prior to entering the franchise agreement. You only have to read the case of Papa John’s v Doyley to get an

the franchisor’s actual loss. The clause was drafted in such a way that the amount was stated to be a genuine pre-estimate of loss, although it is difficult to see how that could actually be the case in all circumstances. There are many other examples where you can see an imbalance of the limitations of liabilities and the bfa, quite rightly, has made it clear that such imbalances are not compliant with the Code. A franchisor cannot expect to have its cake and eat it.

business. Further, the franchisor will seek to recover its costs incurred in facilitating the business transfer and may also charge a commission where it has found the buyer; known as a finder’s fee. However, where a buyer is an existing franchisee within the franchisor’s network, the bfa has recently issued guidance to make it clear that such a transaction should not attract a finder’s fee for an amount greater than the actual (and reasonable) costs incurred by the franchisor.

Commissions on resale

Conclusions

One of the most fundamental rights available to a franchisee is the right to be able to sell its franchise in order to realise its investment in and development of its business. All franchise agreements should contain a resale clause which stipulates the process through which a franchisee will need to go through in order to resell its franchise. Typically, the franchisor reserves the right to approve the buyer (who will become a franchisee), and quite often the franchisor has a right of first refusal to acquire the franchised

It is quite clear that any franchisor operating in the UK should read and understand the bfa’s Code of Ethics and ensure that its franchise agreement is compliant and, in any event, that it operates its franchise network in the spirit of good ethical franchising. There should be no place in the UK’s franchising industry for aggressive, bully-boy tactics. Hard-working, dedicated franchisors who permanently seek to develop their system and operate ethically and fairly deserve to flourish in the market.

A franchisor cannot expect to have its cake and eat it understanding of the potential liability facing a franchisor should it fundamentally mislead a prospective franchisee in providing projected turnover figures. Any franchisor should take great care in its representations regarding turnover and profitability and not simply rely on disclaimer wording. For example, it would be entirely unreasonable for a franchisor to include a provision within its franchise agreement that states that no matter what information is disclosed to the prospective franchisee, its total liability is limited to a financial amount far less than the franchisee’s actual loss. And it would be especially unreasonable if, in the same agreement, the franchisee is subject to onerous provisions in respect of its liability. The agreement I alluded to above also included a liquidated damages clause stating that, in the event of termination, the franchisee was immediately liable to a penalty of tens of thousands of pounds regardless of 56 elitefranchise Summer 2014

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Inspiring, educating and supporting women considering or involved in franchising

The mission of the group:

The EWIF group is dedicated to encouraging women into franchising. Its members come from all areas with franchising industry and include: Franchisors, Franchisees, Banks, Consultants, Accountants, Solicitors, Media Providers, Exhibition Organisers, as well as other associated businesses.

3 target groups:

Women looking to become franchisees

Women business owners looking to expand through franchising

Existing Franchisors that have businesses suitable for woman franchisees

EWIF also....

 Undertakes research into women in franchising  Raises the issues facing women in franchising  Publicise "Women in Franchising" in the media

www.ewif.org | info@ewif.org Inspire | Educate | Encourage | Support

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FRANCHISE FOCUS

ABC Photography Our franchise opportunity is ideal for anyone who enjoys working with children but not necessarily an experienced photographer! We specialise in photographing Nursery schools, pre-school groups and Mother & Toddler groups. Also, as a mobile Studio, we take portraits in customers’ homes, providing top end quality photographs, reasonably priced. Call 0121 704 1016 email: info@abcphotos.co.uk www.abcphotography.co.uk

AboutMyArea AboutMyArea offers you a unique business opportunity: an interactive local AboutMyArea online website that keeps the local population up-to-date with all the latest news and events in their area. AboutMyArea is not a hard sell advertising business. Its success is based on engagement and careful, effective marketing. Call 0871 384 9936 www.aboutmyareafranchise.co.uk

A-Star Sports

A-Star Sports is a multi award-winning children’s sports coaching franchise, specialising in delivering weekly classes, holiday clubs, parties and events direct to families. We offer an exciting opportunity to coach ten core sports and more, promoting the all-round benefits of sport and a lifelong commitment to being active. Franchisees are offered a bespoke training programme but they all have three things in common – a passion for sport, an affinity with children and the drive to succeed in business. Call 0845 459 2210 email: gary.bassett@a-starsports.co.uk www.a-starsports.co.uk

Belvoir Lettings Belvoir Lettings has grown dramatically since opening in 1995, with over 150 franchised offices nationwide. Offices are owned and managed by local people, whilst being part of a recognised brand and successful business model. As the first residential lettings agency to launch on AIM in the London Stock Exchange, Belvoir has ambitious expansion plans. Franchise owners with the aptitude, determination and people skills are needed. Call 01476 584 900 email: franchise@belvoirlettings.com belvoirlettings.com

• An exclusive territory. • Extensive and on-going training in photographic techniques. • The photographic equipment and stationary to start up your business. • Marketing and Accounts training. • A comprehensive franchise Operations Manual. • On-going Technical, Marketing & Management Support Services • Your own personal Web Page.

• Become the ‘Go To’ news site for your local community • Franchise fee of £9,995 (plus VAT) • Low monthly fee of £199 (plus VAT) • Established in 2005

• Low cost start-up at £12,500 (+ VAT) including equipment to deliver all levels of the programme (10 core sports) • Unique eight year coaching programme for children aged 2-10 years • Ongoing support with detailed business and coaching resources • Exclusive, defined territory

• 150 Offices Nationwide • 100+ Territories still available • £22.5K one-off franchise fee • £332K Turnover potential • 3 weeks training = 30 Training Sessions • Over 6000 unique visitors to our website every day *Plus VAT **Average turnover of our top 25% of offices YTD July 2013

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FRANCHISE FOCUS

Caremark

Caremark offer a management style franchise, within the home care sector. Franchisees have the opportunity to grow and develop a business providing care and support to those wishing to remain living independently in their own home within an exclusive territory. On-going support both in field and office based ensure franchisees have the best possibility to replicate Caremark’s system. Enabling them to build a business in this growing sector, which can provide both financial and personal rewards. Call 01903 266 392 email: franchise@caremarklimited.co.uk www.caremarkfranchises.com

Century 21 Century 21 is the world’s largest estate agency network, with over 7,100 offices and approximately 100,000 agents in 74 countries worldwide. We are looking for new offices to join the Century 21 family and bring this international and exceptional brand to new locations in the UK. Call 0870 21 11 399 opportunities@century21uk.com www.century21uk.com/franchise

CNA Executive Search Ltd Build a global business with no territory boundaries Build your own business with the brand, support and benefits of being part of one of the largest recruitment companies in the UK and Europe. CNA Executive Search specialist (Partners) forms the executive search and senior appointment arm of the Pertemps Network Group Ltd. Call 01676 822 222 email: nick.sprang@cna-international.com www.cna-international.com

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

• Assistance with launching your business • Induction and on-going development training • Tech support • Access to an extensive global network

• Instant brand recognition and credibility with global corporations • Full Training on how to build and grow your business • Superior and constantly evolving systems from the Pertemps Group • Start your business with low overheads from your home office.

Driver Hire Nationwide A straightforward business with huge potential A proven B2B management franchise with over 100 offices and a 30 year track record, Driver Hire is one of the most successful franchise brands in the UK. A specialist recruitment company supplying temporary staff to the transport and logistics sector. Average full year sales for Driver Hire franchisees in 2012/13 were £704k. Call Kasia Baldwin 01274 361073 email: franchise@driverhire.co.uk www.driverhirefranchise.co.uk

• Entry investment level from £35,000 (including start-up capital) • Run your own business in a sector worth £26.5bn in the UK • Net profit potential of over £100k per annum • No previous recruitment, transport and logistics experience required

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FRANCHISE FOCUS

Eazi Apps Get involved in the fastest growth market in history offering iPhone, iPad, Android and mobile web apps without any technical or design experience. We give you a full turnkey package that includes in- house training, support, help desk, loads of marketing materials and a full sales and marketing plan.

• Start your own mobile app business for only £5,995 (+VAT) • Substantial income potential

Be your own boss, work your own hours, when you like, where you like.

• Work from home

Call 0800 865 4600 www.eazi-apps-business.co.uk

• No tech experience required

Goldgenie Goldgenie was formed in 1995 and is now the most influential and trusted brand of its type in the world. Clients include HTC, Blackberry, Lexus, Viacom, American Express and Visa, and numerous A list Hollywood and international stars. Business in a box: This amazing business opportunity truly can give you the Midas touch turning hundreds of everyday items into luxurious gold or rose gold. Our success can also be your success with a small investment of just £2447.50 plus Vat. Call Frank Fernando on 0208 804 6200 Email: Frank@goldgenie.com www.goldgenie.com

Harry Ramsden’s Celebrating over 85 years in operation, Harry Ramsden’s is Britain’s longest established restaurant chain and is world famous for its Fish and Chips. With almost 30 Harry’s outlets operating across the UK and Ireland, we’re looking to increase our presence and are offering an amazing opportunity to become part of a British Institution.

Call 0203 077 5880 email: franchise@harryramsdens.co.uk www.harryramsdens.co.uk/franchise

• Complete business in a box • Minimal investment • Unlimited income only limited by your imagination • Change your life by visiting this link: www.goldgenie.com/ goldgenie-businessopportunity.php

Harry’s Facts • Fish and Chips remain the nation’s favourite cuisine with 382m portions sold annually • Harry Ramsden’s is the brand most closely associated with Fish and Chips globally • Brand awareness and recognition, along with the popularity of the offering, ensure Harry Ramsden’s outlets compete effectively from the outset

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

• The bfa Gold Franchisor and Franchisee of the Year

Call 01925 732460 franchiseinfo@homeinstead.co.uk www.homeinstead.co.uk/franchise

• 5 star Franchisee Satisfaction

• Smith & Henderson Best Franchise Award • No.1 Home Care Provider

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FRANCHISE FOCUS

The Interface Financial Group IFG 50/50 is an affordable home-based franchise that provides short-term working capital to small businesses by purchasing current, quality invoices at a discount. In IFG 50/50, all transactions are syndicated 50/50 with the franchisee and franchisor. IFG is also responsible for the due diligence and paperwork for the transactions, while IFG 50/50 franchisees build the referral relationships. Also available is an innovative Capital Leverage Programme to allow franchisees to grow their capital even faster.

• Excellent ROI • Low overhead • Home-Based • Exceptional training & support • Non-territorial & Portable

Call 0845 834 0332 email: ifg@interfacefinancial.com www.interfacefinancial.co.uk

JAN-PRO Cleaning Systems Jan-Pro is committed to helping individuals start their own commercial cleaning business at whatever level they choose – part time, full time or executive, with an entry level investment of under £10,000. Our training is excellent, our support ongoing and our vision is for you to grow your business to support the lifestyle of your choice. Call 01934 740472 email: phil.ryan@jan-pro.com www.jan-pro.com/centrallondon

KARE PLUS

Kare Plus is a leading provider of quality nursing and domiciliary care, supplying medical and non-medical personnel to the NHS, some of the UK’s largest private hospitals and nursing care groups, and those requiring care in their own home. We have new Service Level Agreements in place with the NHS, a portfolio of established National Contracts and full CQC accreditation. Join us and earn healthy profits by delivering valuable services to your local community. Call 0845 094 9288

• Join a rapidly expanding industry. • Learn and benefit from our training, our processes, our unique guarantee and our reputation. • Invest and grow at a pace that suits you and your individual goals. • Rely on JAN-PRO to take care of the business while you take care of your customers.

• Established brand recognised by health professionals • On-going support, including recruitment and customer development • Access to national contracts nationwide • Competitive franchise

Martin & Co Martin & Co is one of the only UK property agency franchises that offers lettings and estate agency with UK-wide recognition. With a network of just under 200 franchise owners, they are the largest property franchise business in the UK. With strong high street and online presence, the secret of their franchise owners’ success is that they can provide local property knowledge whilst being backed by a national brand.

• Buoyant rental market • Growing sales market • Turnover £245k in year 3 • Build a business worth over £380k in just 5 years

Call: 01202 292829 email: propertyfranchise@martinco.com www.propertyfranchise.co.uk

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FRANCHISE FOCUS

Rainbow International Rainbow International is the leading supplier of restoration and specialist cleaning services following fire, flood or accidental damage in domestic and commercial premises. These services are offered to many of the top insurance companies as well as large companies and private customers. Business opportunities are available throughout the U.K including new territories and re-sales. All training will be provided in our in-house training facility. Call 01623 675 185 Businessopportunites@rainbow-int.co.uk

Surelet

SureLet has been providing a fresh, exciting and innovative lettings franchise opportunity for over 10 years. The support, care and attention that each and every franchise receives is the reason our company continues to grow. Which is why when you buy into our SureLet Franchise, you don’t just buy into a successful business, you buy into a family. We want to continue to build on our successful lettings franchise model and make a real difference in the Lettings Industry. Call 08000 934 984 info@surelet.co.uk www.surelet.co.uk

• Recession proof business • Recognised brand • Protected territories • Personalised Rainbow website • Ongoing support from a team of experts at Head Office • Extensive 3 week training onsite at Head Office

• Send all paperwork to our PropertyManagement Centre • Bespoke Sign-writing - have the car vinyl synonymous with the SureLet brand • Cloud based technology for easy management • Franchise only starting from £12,500

Trivaeo Cloud Services The company behind the “Best CRM on the Planet” and Finalists in the Network Computing awards 2014 now seeking Channel Partners with a deal structured like a Franchise, but without on-going Management fees. Sell 65 on-line business applications that will automate just about any SME. All revenues earned come directly to you. Full training and Management systems supplied. No technical experience required.

• Easy to sell and demonstrate • Free trials for all users • Revenues that come directly to you • Fantastic margins with limited outlay and no stock.

Call David on 0844 561 1979 email: partners@trivaeo.com www.trivaeo.com

Zip Yard Are you ambitious to run your own business? Customer driven and well organised? Can you follow a proven business system? All Zip Yard franchises are finished to a distinctive specification and you are presented with a fully operational and fully supported business with trained staff and comprehensive brand marketing from day one. Call 01530 513307 email: edownes@thezipyard.co.uk www.thezipyard.co.uk

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

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GET INSPIRED BY SOME OF THE UK’S MOST SUCCESSFUL ENTREPRENEURS

Receive 6 issues of the UK’s best new franchise magazine for entrepreneurs for only £20* Elite Franchise is the UK’s fastest-growing title for entrepreneurs, start-ups and growing franchise businesses in the UK. A high-quality magazine, it’s packed with engaging content including interviews with the hottest franchises around, hints and tips to help aspiring entrepreneurs and columns from those in the know. SAVE £20 on the cover price delivered free to your door. Subscribe to the print edition and enjoy free access to the digital edition every month. (QUOTING REF. ELITEOFFERLR2)

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FRANCHISE DIARIES

Itâ&#x20AC;&#x2122;s often said that a business is defined by its people â&#x20AC;&#x201C; and a vigorous recruitment process is unquestionably an essential part of running a successful franchise, says Rachel Shaw

People power W

e all want to build a profitable business but the secret ingredient for me has always been having great staff. There is, now more than ever, a high demand for outstanding customer service, great value and the perfect product, so it is vital to have the right people in place to be able to deliver this. There are many resources out there to help employers find the person who best fits the bill and over the years I have developed a recruitment model to help me find the very best staff for my stores. To create awareness of available positions, I use the local Jobcentre, recruitment days, as well as advertising in the window of my stores. Once some interest has been generated for the advertised positions, I direct the potential candidates to the careers section on the subway.co.uk site. Here, candidates can find detailed job descriptions of available positions and apply by uploading their CV and completing an online application form.

Candidates also answer a number of scenariotype questions to identify how they would react in a variety of different circumstances, from which a character analysis is formed. When selecting possible employees, I look at a number of different factors including their travel distance to the store, availability, any previous work experience and their responses to the scenario questions completed during the application process. I think it is very important to give something back to the local community in which my stores are located by creating jobs and recruiting staff in those communities. The next step in the process is the interview. I always like to invite people in person by telephone as well as confirm in writing the interview date â&#x20AC;&#x201C; a personal touch can help reduce barriers and nerves from the applicant. It is also important to remember the interview is not only a chance for you to find out about the potential employee but for the candidate to find out what your business has to offer them,

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FRANCHISE DIARIES

so you should always be well-informed and prepared for any of the questions that might come your way. Once a training programme of up to 20 hours has been successfully completed, I will invite the candidate for a review. I use this to find out how they feel the training went and to determine whether we agree working in a Subway store is right for them. In the review, I reiterate the fact that this is a people business and that preparing a customer’s food is a very personal experience. Therefore, perfection is absolutely everything. If the employee passes the training programme they are a permanent employee in my business. During the training programme, candidates also receive access to the University of Subway, which offers simple to follow interactive training and development for franchisees and their staff. All new starters are required to complete modules regarding

health and safety, fire safety, customer service and bread baking. The tutorials are very educational – each module includes a short video of store procedures, after which they are required to answer a series of multiple choice questions. Each module lasts around 15 minutes and candidates can choose to complete these at home or in-store. I am able to log-in and monitor their progress at any time. This process follows the philosophy ‘I hear and I forget, I see and I remember, I do and I understand.’ I run both my Subway stores with the ethos ‘a fresh appearance is always required to sell a fresh product’. I hope my ethos inspires my staff to always deliver the very best service that ultimately results in repeat custom. Having the right people working for or with me has made all the difference and, with the right recruitment process in place, I believe any franchisee can do the same.

Having the right people working for or with me has made all the difference

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ADVERTISING FEATURE

Dublcheck doubles down the decades Now entering into its 21st year, Dublcheck reflects on its anniversary celebrations and the success of franchisees

s one of the fastest growing and most successful franchises in the UK, 2013 has certainly been a big year for Dublcheck, not least because it marked 20 years of business for the leading commercial cleaning company. Deciding to celebrate in style, the franchise hosted a glittering ball to recognise the many achievements of the organisation and its franchisees. The ball, hosted by founder and Chairman Carol Stewart-Gill, was held in the Leverhulme Stand at the historic Chester Racecourse. Over 120 guests attended the superb occasion and enjoyed a champagne reception, dinner and an evening of entertainment. Guests were treated to a dazzling performance from world modern jive dance champions and franchisee owners Hazel Surguy-Price and John Lloyd. An outstanding performance by acoustic reggae and Latinostyle band Duncan Disorderly & The Scallywags brought everyone to the dance floor and got the evening into full swing. Speaking passionately on the night about the company she founded in 1993, Carol StewartGill said, “It is fabulous to be sharing the achievements of this wonderful organisation with our franchisees. Success only comes with hard work, grit and determination, and this evening demonstrates the commitment of our franchisees and dedicated head office team.” Len Donnelly won the prestigious Dublcheck 20th Anniversary Award. Since joining the

member of

Dublcheck network over six years you a success. Dublcheck’s “We can’t thank make ago, Len has amassed an annual approved training programme our franchisees will make you a professional in turnover in excess of £325,000. To recognise his ongoing growth your field. Having been in the enough for and exceptional quality service, business of setting people up in the sustaining our commercial cleaning business for Dublcheck awarded Len a holiday reputation as for two at the luxurious Bellagio twenty years, Dublcheck knows Hotel, Las Vegas. how to deliver. When you invest in a high quality Carol congratulated and thanked a franchise, our committed head and committed office team will not only walk you franchisees for maintaining Dublcheck’s values and for through a comprehensive training organisation” providing exceptional customer course but it will also go that Carol Stewart-Gill, founder and Chairman, Dublcheck service standards, “We can’t extra mile by obtaining cleaning thank our franchisees enough for contracts on your behalf. sustaining our reputation as a high quality and Founded in 1993, Dublcheck is the UK’s leading committed organisation. We look forward to even franchised commercial cleaning company and more exciting and prosperous years ahead.” has been recognised as the 20th fastest growing private company by Virgin Fast Track and The About Dublcheck Sunday Times. With over a hundred franchisees Dublcheck is a franchise that requires few sales in operation, Dublcheck remains a wholly owned skills. All the business is obtained on behalf British company. Carol Stewart-Gill says with of our franchisees so they know exactly what confidence, “If you put in the effort and follow the their turnover will be. You can start with a Dublcheck System, huge rewards can be realised!” minimum turnover of £14,950 per annum if you want to run a hands-on business, starting small whilst retaining the security of your current employment, or you can purchase a franchise Dublcheck worth half a million pounds per annum by operating a management business. Opportunities Website: www.dublcheck.co.uk are endless: there is no upper limit. Email: franchise@dublcheck.co.uk Whatever your background, investing in a Phone: 0800 317236 Dublcheck Commercial Cleaning Franchise can

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