MAY/JUNE 2014
CLEANING UP
MAY/JUNE 2014
Despite not embarking on a business career until middle age, Pam Bader took to entrepreneurialism like a duck to water. Thirty years after Molly Maid arrived in the UK, the cleaning franchise has 70 outlets, 850 staff and ÂŁ16m turnover
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Contents
18
The Elite interview Pam Bader: a self-maid success
18
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Contents
25 One to watch
Everything’s going swimmingly for Water Babies
44 Staying afloat
14 In the flesh The best bits of the first Elite Business National Conference & Exhibition
35
54 Clean break
Franchisees can help drive innovation across a whole franchise network
The cloud is revolutionising the fortunes of bookkeeping franchises
48 Foreign friends
Finding a suitable master franchisee is the key to global glory
30 Seeds of change
39 Sky high
All isn’t lost for a franchisee when a franchisor runs into financial trouble
A franchise resale can often be the best bet for all parties
Doubling up
With great marriages comes great franchisee success stories
64 Franchise diaries
There’s much to consider when picking a location for your first site May|June 2014 elitefranchise 5
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As a business opportunity, OURS IS MORE REWARDING THAN MOST COME AND MEET US
at the British Franchise Exhibition, 20th & 21st June 2014, STAND N240 @ EventCity, Manchester.
Which would you find more rewarding? Making money or making a real difference to someone’s life? Why choose? With a Home Instead Senior Care franchise, you can do both! Home Instead Senior Care is unique. We are the only UK company that specialises 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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Editor’s Letter
VOLUME 02 ISSUE 03 / 2014 SALES Harrison Bloor – Senior Account Manager harrison.bloor@cemedia.co.uk Darren Smith – Account Manager darren.smith@cemedia.co.uk Samuel George – Account Manager samuel.george@cemedia.co.uk Charlie Anderson – Junior Account Manager charlie.anderson@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 Dara Jegede – Feature Writer dara.jeg@cemedia.co.uk Jon Card – Feature Writer jon.card@cemedia.co.uk Joe Jeffrey – Intern joe.jeffrey@cemedia.co.uk Tom Davis – Intern tom.davis@cemedia.co.uk DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Dan Lecount Web Development Manager dan@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 Charlotte Wright – Trainee Administrator charlotte.wright@cemedia.co.uk DIRECTOR Scott English Managing Director scott.english@cemedia.co.uk
Circulation enquiries: CE Media Call: 0208 214 1068 Elite Franchise is published bi-monthly by CE Media, Fortis House, 160 London Road, Barking, IG11 8BB Copyright 2013. All rights reserved No part of Elite Franchise may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor. Elite Franchise will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the printing process, images can be subject to a variation of up to 15 per cent, therefore CE Media Limited cannot be held responsible for such variation.
Pam Bader, I salute you
P
am Bader really is one of a kind. Having raised three children, she only came to flex her entrepreneurial muscles later on in life. Nowadays, Molly Maid, a once fledgling franchise, has 70 outlets, 850 staff and turns over £16m. The very modest Bader doesn’t take sole responsibility for the success of the company, of course. She attributes the company’s prowess to the power of the team and to the work ethic of the franchisees that have come on board since she first started franchising in 1984. But not all of these franchisees, the majority of whom are female, leapt in head first. Many of them needed coercing to dip the tiniest of toes in the water. Bader tells tales of women asking her: ‘are you sure I can do this? I’m just a housewife, after all.’ This would have undoubtedly been a different story if those franchisees had been men. Unfortunately, women often lack the self-assurance and steely determination necessary to be successful in business. Centuries of being told that we are only good enough to iron shirts, knock up a decent dinner and raise children has left many women out in the cold when it comes to starting and running their own businesses. Things may have improved in recent years, but startling discrepancies in pay and gender inequality at the very top of some of our biggest companies continues to send the wrong message to women and girls about achieving their true potential. For me, I think Bader’s biggest success in life is not starting and growing a multimillion pound business, impressive though that is. It’s that she gave women the self-belief that they could do the same; they could be successful in their own right. It’s for this reason Bader won the gong for most inspiring woman at the annual Encouraging Women into Franchising awards in 2013. But I’m not quite sure any number of trophies can come quite close enough to recognising just how much this one woman has done for the sisterhood. Pam Bader, I salute you. HANNAH PREVETT EDITOR
cemedia.co.uk
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Contributors
Farrah Rose
Rose definitely ticks all the boxes for an international franchising expert. Born in Iran, she moved to France before finally settling in Yorkshire with her husband and two children. Her role at the International Franchising Centre means she continues to take to the skies. At the time of going to print, she’d just returned from a franchise brokers’ conference in Malta but she was all ready to jet off to Dubai two days later. Fortunately, she still had time to pen an excellent column on master franchisees in between her gallivanting.
Joe Jeffrey
We’re sad to report a ‘conscious uncoupling’ at Elite Franchise this month. Feature writer Jeffrey has departed for pastures new but he leaves with a new-found passion and expertise for franchising. He certainly struck up a strong relationship with the rest of the team during his time here, thus making his piece on franchisee couples this month all the more fitting. We’re going to miss his fruit and veg-free diet and penchant for hip-hop beats.
Kate Legg
When’s she not busy penning articles on franchise resales – as she has for us this month – Legg enjoys escaping the office for the great outdoors. You’ll usually find her hiking around the Lake District or sailing off the Cornish coast. Exercise was at a premium over Easter though, as the lawyer tucked into many a chocolate treat, celebrated a friend’s wedding and spent some quality time with her beloved cat, Ziggy.
Emilie Sandy
In addition to snapping all our cover stars, like Pam Bader this month, Sandy is a full-time student, fulltime photographer and full-time mum. Her recent time has been split between filming for her MA, setting up a wedding photography business, Paper & Primrose Wedding Photography, with a close friend and treating young son Freddy to his first taste of Easter. Whilst he enjoyed Cattle Country Adventure Park and the local Easter egg hunt, Freddy seemed somewhat bemused by his first encounter with chocolate. We’re sure he’ll see the light soon enough.
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Want to run your own letting agency? Let’s do the numbers.
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Be part of the equation. Contact us today.
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ADVERTISING FEATURE
A caring opportunity Since its launch in 2005, Caremark has become synonymous with two things: a great business opportunity and high quality home care. Franchise Fee £32,950 + VAT
I
t is as true today as it was then, with the franchise continuing to attract plenty of interest from high calibre professionals seeking a worthwhile investment. The brainchild of Kevin Lewis founder and CEO, Caremark has continued to grow and develop and now has offices throughout the UK, Ireland and one in Malta. Having been involved in the Care business for the last 25 years, Kevin reflected “I still find it the most exciting business I have ever been involved in and I’m staggered that I am still as excited today as I was then”. As business opportunities go, Caremark has produced a business model which has remained both relevant and commercial, in spite of the downturn in the economy. Two factors which contribute to this are: the model embraces diverse ways of delivering care and support, thus keeping pace with the Kevin Lewis, Caremark changing needs of the public it serves and secondly, being competitively priced it has remained accessible to a broad range of potential investors. Historically, investors wishing to buy a Caremark franchise were professionals looking to change their career or invest funds into another business. Today, more and more professionals are finding themselves looking down the long pipe of possible redundancy and what that will mean for them. Those attracted to the care sector (which has a current annual value of over £25bn) are also looking for a career which will do more than just build a very profitable business. There is
also the need to find a business which will return something to society and the community they serve. Interestingly, the care sector is now attracting enquiries from overseas business professionals and domestic high-investment entrepreneurs. Having a vision of several years down the line is essential if franchisees wish to reap the rewards of this high level, long term investment. Entrepreneurs certainly need to have the requisite amount of capital available to buy a high-level investment franchise, but more important is the need for the right professionals to come into the business, which is why the company is careful in its selection of franchisees for the network. The care industry is about people – managing a team and delivering a service to vulnerable clients. It is so much more than simply owning a multi-million pound business. Caremark started 2013 at a run, with 4 new franchisees joining the network in January alone, attracted not only by the proven business model, but also by the longevity of the industry into which they were investing. Crucial to the continued success of the network is the recruitment of the right calibre individual who will have not only a passion for the industry, but the requisite drive and ambition to grow a substantial business. Certainly, this is a business opportunity with great potential. What it is not is a ‘get-rich-quick’ option. The success of the business is essentially down to the franchisee – there are no guarantees with any business, which is why Caremark is careful to select the right franchisees for the network.
From an investor’s point of view, buying into a reputable brand is vital. There is also the need for honesty and integrity within the organisation– a culture which must come from the top down. A successful network will demonstrate this ethos and will be a clear indicator that the company operates within a culture of honesty and transparency. Marry this up with strong network support and excellent training for franchisees and their staff and you have a franchise opportunity guaranteed to get a second look.
“I still find it the most exciting business I have ever been involved in”
Dublcheck caremark Website: www.caremarkfranchises.com Email: franchise@caremark.co.uk Phone: 01903 266 392
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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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News + Events
When Imogen Douglas set up Maddie and Mark’s Shoes, after the frustration of trying to find her daughter Madeleine some unique and well-fitting footwear, she never imagined the success it would experience today. Now, seven years after launching the first Edinburgh store, the leading children’s shoe retailer is seeking master franchisees and area developers to take the brand to the Middle East. So, if you think you’re a shoe-in to become the next big Middle Eastern footwear franchisee, look no further.
After a record number of entries, 20 finalists have been named for the bfa HSBC Franchisor of the Year Awards 2014. New categories introduced this year have led to a 30% increase in entrants compared to 2013, with a mixture of both upcoming businesses and franchising giants. The entrants, including companies such as McDonald’s and Card Connection, will fight it out to become the winner of six different gongs.
WORDS: TOM DAVIS
Things are heating up for Roomzzz Aparthotel which has announced its first international location in Dubai. It follows the news that Roomzzz, which originated in Leeds in 2006, has launched its international headquarters in the United Arab Emirates, marking its intention to be a serious contender in the global marketplace. “Investors are keen to be involved as franchise partners; there has been a well-documented success story surrounding our franchise opportunities,” said Mark Walton, head of Roomzzz Aparthotel UK. It seems the Roomzzz franchise is preparing to join the jet set.
It’s not often that large businesses are the saviour of local retailers but a new plan from Nisa may just save the day. The Scunthorpe-based firm, which supports over 4,000 independent retailers across the UK, has announced a new franchise trial that is set to be rolled out to retailers by the end of 2014. Nisa hopes that this new franchise option will encourage retailers to adopt a systemised, disciplined approach. Local retailers will have a further surprise in store as Nisa predicts this franchise option could earn them an extra 3% profit. 12 elitefranchise May|June 2014
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News + Events
Want to become a franchisee but just can’t afford it? Well, it’s time to rejoice: SureCare, the care company, is launching the UK’s first ever micro franchises. To be known as SureCare Local, they will offer a range of unregulated services such as DIY, gardening and cleaning, babysitting holiday clubs and a mobile crèche service. The cost of becoming a SureCare micro franchisee starts from just £7,000 for covering a population of around 100,000 people.
Good news for American food lovers living in East Anglia. Zaks, Norfolk’s long established chain of American diners, is set to add a fourth restaurant to its growing property portfolio after agreeing its first ever franchise partnership. The plan is for the new restaurant to open in south-west Norfolk within the year, under the management of husband and wife team, David and Joan Hughes. Card Connection, one of the UK’s leading greeting card publisher, has announced a new scheme that will see its franchisees battling for top spot. The Super Platinum Scheme has been awarded to five of Card Connection’s top performing franchisees. The initiative will see ‘Super Platinum’ franchisees receive bonus payments in line with the growth of their businesses. Ker-ching.
With the increasing growth of supermarkets it’s always good to hear a happy local retail story. OneStop, which operates over 700 convenience stores in the UK, has successfully made its franchise debut in Scunthorpe. The move marks the expansion of the scheme further north after it successfully launched franchise stores in the Midlands, the south-west and Wales. The OneStop franchise isn’t letting up any time soon.
Tesco’s clothing brand F&F has announced plans for its first franchise stores in the USA. The brand hopes to become a leading global brand for affordable fashion and is set to open seven stores on America’s East Coast this year, with the first opening in Boston next month. Tesco’s profits may be falling in the UK so it will have high hopes for the F&F US expansion. After all, every little helps.
Upcoming Events bfa Northern Forum Leeds May 14 Gomersal Park Hotel, Moor Lane, Gomersal, Leeds, BD19 4LJ
bfa London / South East Forum May 21 Kensinston Close Hotel, Wrights Lane, Kensington, London W8 5SP
bfa Midlands Forum Birmingham May 15 Moor Hall Hotel, Moor Hall Drive, Sutton Coldfield, Birmingham B75 6LN
bfa South West Forum May 28 Hilton Newbury Centre, Pinchington Lane, Newbury, RG14 7HL
British Franchise Exhibition June 20 – 21 EventCity, Barton Dock Road, Urmston, Manchester, M41 7TB
A full event listing is available on our website: elitefranchisemagazine.co.uk/ events
bfa Annual Conference June 26 – 27 Heythrop Park, Enstone, Chipping Norton, OX7 5UE
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Elite
Business
LIVE
After nine months of feverish preparation, the Elite Business National Conference and Exhibition exploded onto Shoreditch’s sun-drenched streets last month. Whether it was #pigeongate, eager beavers practically sat in the aisles to catch a bit of Raja Saggi, UK head of B2B marketing at Google, or Jacqueline Gold reminding us that size most certainly does matter, there are more great memories than we can shake a stick at. Here are just a handful
#cashtag
It’s certainly good to get a picture of all things economic from an experienced political hand. Michael Portillo, former MP and cabinet minister, was characteristically frank about where we’ve failed to learn from our recent economic troubles. “We haven’t used the opportunity of a financial debacle to readjust our economy and start again,” he commented. However, that’s not to say the former minister was at all po-faced about the country’s financial outlook or the opportunities it represents. He said: “We have low income tax, low interest rates: these are the circumstances under which to do business.” But, given we’re actually standing at a sweet spot, why are businesses struggling to turn things around? That old bugaboo, lack of funding, certainly plays a part. “We need a lot more innovative ways of getting money into small businesses,” remarked Lord Digby Jones, the former director general of the CBI and government trade ambassador. And whilst risk aversion is often blamed for the lack of bank lending, he was quick to note this goes both ways and that many enterprises are looking elsewhere for their cash – with 30% of our audience likely to plump for newer methods like crowdfunding, compared to the 24% who’d approach their bank. He added: “One reason small businesses don’t borrow from banks is because they don’t trust them.” And whilst this has inevitably contributed to the explosion of alternative funding routes in the last few years, our speakers quickly refuted the idea that these tools aren’t here to stay. Portillo commented: “Even if trust in the banks is restored, it won’t do away with alternative sources of funding – and that is very healthy.”
Standing out as a start-up
Given the fact she has played a significant role in turning round attitudes to female sexuality in Britain, there’s perhaps few better placed to discuss how businesses must be prepared to court controversy to get ahead than Jacqueline Gold, CEO of Ann Summers. “Getting into trouble goes with the territory but it gets people talking about our brand,” she told our audience. Being prepared to ruffle a few feathers is essential if you’re going to stand out from the crowd. As Gold rightly said, “you need to innovate, not imitate” Gold also asserted that a vital differentiator for any business wanting to assert its individuality is its attitude to its staff. “A great boss is one who empowers people,” she explained. “Empowering people gives them a great chance to stand out from the crowd.”
All things to all people
Karren Brady, Apprentice star, vice-chairman of West Ham FC and the government’s small business ambassador, was also unequivocal in her assertion that talent is the mortar that holds strong businesses together. “Nobody has ever built a great company without great staff,” she commented. In her eyes, the most important thing is to stimulate employees by providing a culture in which they’ll feel engaged, as well as providing them regular opportunities to prove their mettle. “The saddest organisations are the ones that have no expectations of you.” She also said that staff who remain in silos are rarely able to do their best and that great businesses are those in which every member gets stuck in and gets their hands dirty with the day-to-day running of things. “Everyone needs to be entrepreneurial,” she proclaimed.
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“We need a lot more innovative ways of getting money into small businesses” Lord Digby Jones, former director general of the CBI and government
Vital statistics: what delegates told us
If you were lookinglooking to raise money grow yourmoney business, where would be your business, If you were to toraise to grow your first port to call? where would port to call? If you were looking tobe raiseyour money tofirst grow your business, where would be your first port to call?
Venture Capital Venture Capital
9% 12% 9% 12%
Angel funding Angel funding
Friends and family Friends and family
23% 23%
Peer-to-peer lending/crowd funding Peer-to-peer lending/crowd funding
30% 30% 26% 26%
The bank The bank
Will King @iAmWilliAmKing Congrats 2 all involved in putting on @EliteBusEvent feat. @MichelleMone @Jacqueline_Gold @Digbylj & more. Cheers @trumanbrewery #EBE2014
Nina Tukaj @NinaTukaj Fab presentation by @Jacqueline_Gold at the @EliteBusEvent ! Passion, leadership, tenacity and women empowerment!
Marie Milligan @mariemilligan Thanks to the organisers, staff & amazing speakers sharing their time & expertise to help us grow our businesses! @EliteBusEvent #EBE2014
Resincom CS Ltd @Resincom We’ve enjoyed the show @EliteBusEvent atmosphere was great! Big thanks to all involved, it’s been fantastic!
What was the MOST important profit-making change you made to your business operations in the last 12 months?
35% 35% 15% 12% 4% 35% 35% 15% 12% 4%
Developed new products/services
Cultivated new clients/markets
Reorganised management
Increased prices of goods/services
Developed new products/services
Cultivated new clients/markets
Reorganised management
Increased prices of goods/services
Increased technology/ investments Increased technology/ investments
James McMaster @J_McMaster Thanks @EliteBusEvent for asking me to speak at your inaugural event. What a great day and forward-thinking crowd.
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Talking Point
Saving our high street What, more than anything, will give high-street franchisesa shot in the arm?
Business rates should fall under local control Business rates remain a serious burden both on our network and on our 47,000 small business clients. Last year the chancellor Jo Nockels, took the positive step of limiting business training and rate increases to 2%, rather than linking it communications manager, TaxAssist to inflation, which would have meant a 3.2% Accountants increase, but much more is needed. What we really need is a freeze on business rates, pending a reform of the rating system. In a recent survey we conducted, 45% of our small business network cited business rates as one of the top issues that they would like to see addressed. The current business rates system is often accused of being fundamentally unfair, outdated and outmoded and, more pertinently, it has grown out of proportion to other means of taxation. It is believed that by 2015-2016, the income from business rate tax will increase to £29.6bn – larger than fuel duty and council tax and will become the fifth biggest source of income behind only income tax, National Insurance, VAT and corporation tax. One suggestion is that business rates should fall under local control so that the tax raised bears greater relevance to the provision of local services; whatever the alternatives are, it is clear that what high street businesses really need is a fair system that will support growth.
Encourage people to shop locally
WORDS: TOM DAVIS
T
he lowest point of the economic downturn may well be slipping into the shadows, but many high-street firms are still trying desperately to turn things around. High-street shops were undoubtedly the worst-affected by the recession with established retailers such as Woolworths, Blockbuster and Barratts falling off the radar. Whether this is down to the rise of online shopping or increasing business rates, nobody can deny that the high street we had previously known and loved is changing. A recent piece of research from Groupon and Kantar found that, out of 2,000 shoppers, 42% of consumers enjoy the convenience of online shopping. Clearly something has to change for the high-street franchise; whether that’s coming up with more innovative ways to engage with consumers or a freeze on business rates, there is no definitive answer. What is clear is there’s no time to spare. Chains with more than six shops to their name are closing down more stores and an average of 20 shops have closed each day, compared to 14 a day in 2011. But what do those operating in the franchise industry believe to be the solution?
Most people considering this question would answer pretty quickly: reduce rent and rates. The less the franchisee pays for their premises, the more profitable the franchise will be. Jane Albon, managing director, I would be the first to say that the UK Natures Purest rental and rates systems need revising with some urgency. However, there is another factor that is being greatly overlooked and it’s something that we all have a hand in. Consider this question for a moment: do you actually use your high street? Think back ten or so years. I bet you used your local high street every week, without fail. In fact, you probably used that high street several times a week. You shopped in local stores and the pounds in your pocket went into your local economy. How about now? Hand on heart, do you still use that high street like you did back then? If you’re honest, the answer is probably no. At weekends you often use the out-of-town retail park, during the week you shop online, having your shopping delivered to your door. The perfect solution for your busy life. Perhaps, but how about visiting your high street again this week? I think you’ll like what you find: shops run by enthusiastic individuals with a passion for what they are selling, helpful advice and human interaction. Want to give to a welcome boost to high-street franchisees? Shop local. If we could get the rent and rates sorted too, we’d be laughing.
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Be your own boss
– join one of the world’s most successful non-food franchise groups! At Mail Boxes Etc. we need energetic people with drive, determination and enthusiasm to join our expanding 140-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
For more information please call 01608 649238 or email franchise@mbe.co.uk mbe.co.uk/franchise_opportunities Untitled-21 1
28/02/2014 19:56
THE ELITE INTERVIEW
A second bite of the cherry Pam Bader was married at 16 and had her first child at 18. By the time her offspring had grown up and flown the nest, a unique opportunity to grow and run a franchise presented itself – and Bader grabbed it with both hands
WORDS: HANNAH PREVETT PHOTOGRAPHY: EMILIE SANDY
I
n some ways, Pam Bader was an early bloomer. She married and had a family at a young age. Having dated a boy for a number of months, they were encouraged to marry by both sets of parents when they were just 16. “My parents were petrified of unmarried mothers,” says Bader. “There’s no stigma now, but years ago that was a mortal sin.” Though she was young, Bader took her vows seriously. “I did think it was for life and that it would be all wonderful. It really wasn’t, but at the time I was very happy with what I was doing,” she recalls. From 16 until she was 18, Bader had worked as a nanny. After taking some time out to bear the children – she had two in quick succession – she had a plethora of jobs that fitted around childcare. “When you were working back then you had to have jobs that worked around the childcare, there was no such thing as flexible working. So we’d do all sorts of things to earn money: like dishing up school meals, working in hotels, catering. And when the summer holidays came, we’d have to give up work because somebody had to look after the kids.” Bader’s career played second fiddle to family life until her mid-30s when she began to think
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again about how she might earn a crust. “When I got to 35 or 36 my children were grown and opportunities began to come my way. Life is like this: opportunities open up for you and you have to move into them. I started off running a restaurant for somebody else, I had my own boutique and my second husband had a building company so I got involved in admin and running a small company,” she says. “It was all about life qualifications.” But it was only after her second marriage ended that there was a substantive upswing in Bader’s fortunes. “I was on my own and a mutual friend said, ‘I’ve got somebody I’d like you to meet’, and introduced me to a guy called Malcolm Tall, who’d just purchased the master franchise licence for Molly Maid, which provides a cleaning service, in the UK.” As they embarked upon a romantic relationship, straight off the bat, Tall asked Bader if she’d like to run the franchise that he’d purchased in 1983. “I got involved when he’d had the pilot scheme running for a while. He just said: ‘would you be interested in part-time running this small company I’ve just bought?’ I didn’t have a clue about franchising at that point but I looked at Molly Maid and I said, ‘that sounds lovely’.” Bader’s formative months were spent absorbing all she could about the franchising industry – as well as the company itself – and she headed to Molly Maid HQ in Canada to train. Once she felt she was fully up to speed, the search for franchisees began in earnest. In those days, the 1980s, the business was marketed as a part-time business opportunity and a second income earner that could fit around taking care of a family. As a result, many of the first franchisees were women. “I’m still friends with our first franchisee. It was a lady called Pat Bryant from Essex who worked as a franchise owner for ten years and then came to work here as a business advisor for ten years. In franchising you build friendships with franchise
Back then, women had to do jobs that worked around childcare
THE ELITE INTERVIEW
owners you’ve known for many years.” Bader said that she frequently had to persuade women that they were up to the job. “I would meet women and they’d say to me: ‘do you really think I can do this? I’m only a housewife.’ And I’d say to them, ‘only a housewife? You’ve brought up kids, run a home, managed money. Of course you can run this franchise.’” But women with fundamental confidence issues were often reassured by a tried-andtested franchise model, says Bader. “Molly Maid is a business format franchise: you follow the format, listen to the advice and you’ll be successful. That’s the way it operates – our franchise owners will tell you that.” As the business develops and becomes successful, this can give women an improved sense of confidence and self-esteem – amongst all age groups. Bader gives the example of a 60-year-old former franchisee. “The reason she wanted the business was because her husband had swapped her in for a younger model – and she was furious. He had always said he wanted to run her business and she wanted to get her own back: she wanted to prove to him that she could start a business, run it and be successful,” explains Bader. “She developed a very successful franchise business, she had six cars operating and then when she was 65 she sold it. All she wanted to do it for was to show him she could do it because she felt worthless. Women come into business for all different reasons.” As the franchise has grown, it has attracted more male franchise owners as well as male colleagues at Molly Maid HQ. The company’s president is a man, as is its general manager. But this isn’t symptomatic of a sea change in franchising at large, says Bader. “I’m the only woman chairman of the bfa [British Franchising Association] in all of those years. There’s lots women in franchising now; do none of them really want to go for this? We should be there, visible. It took me ten years to be chair but it’s got to be easier now. I think women have to look at these opportunities and go for them.” Bader has certainly gone for it with all guns blazing herself. Under her stewardship, the company has expanded exponentially, with 70 franchises, 850 staff and £16m turnover. She says she owes much of her success to Tall – not only did he purchase the master franchise, but he was a mentor too. “Malcolm was wonderful. He let me get on with it. I think that’s why our relationship was so good: he allowed me the freedom to develop as a person. I was middleaged when I came into Molly Maid and he allowed me to do all the things I wanted to do and to try things out in the business.” Sadly, Malcolm Tall passed away in 2000. It was a horrific period for Bader: she lost her mother, father and her partner in the space of 14
You follow the format, listen to the advice and you’ll be successful Say cheese: the Molly Maid team in 1987
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COVER STORY
months. “It’s running the business that keeps you going,” she says. “I just threw myself into the company and worked my way through it. But the loss of somebody doesn’t ever get easier. I think it actually gets worse as time goes on because it is a big void in your life. Although I have my family and I’ve got lovely grandchildren, that sense of loss remains.” She has certainly had plenty to keep her occupied at work. Molly Maid has had to fight off fierce competition to ensure that it retains its share of the ever-expanding market, as Bader explains. “When we first came into the market the biggest challenge was the charlady on the bike and most people that had their homes cleaned were those who owned large houses. Over the years that’s dramatically changed because everybody has a cleaner now,” she says. “The black economy is our biggest competitor. We can’t compete [on price]. Our franchise owners are VATregistered and our staff are PAYE so we are on a different planet to the black economy.” Where Molly Maid can compete, however, is on service. “There are lots of people who want to use proper companies because when you’re buying a maid service for your house, and people are going to come into your house, that is quite an emotional commitment,” explains Bader. “There are lots of valuables in their homes, so they want to make sure that it’s the right company for them. Molly Maid has built up a reputation over the years for being honest and dependable; we’re reliable, we always turn up.” This means that when it comes to recruiting new franchisees, the first thing she looks for is people skills. “I decide if I would buy the Molly Maid service from them. They’ve got to be sellable. Because otherwise they’re going to struggle aren’t they?” she says. “They also have to like people. Yes, we clean homes, that’s what we do, but also we manage staff and manage customers’ expectations. It’s a very busy business, because instead of having huge great contracts, we clean thousands of homes so a franchisee will have a big customer base – and they must look after them.” It’s clear that Bader remains very hands-on in the day-to-day running of Molly Maid. “I’m 70. Years ago I didn’t think I’d still be doing this at my age but I think because Malcolm died, it’s very different. If he was still around I wouldn’t be in the office so much,” she admits. “I’m in a nice position: I can come to work every day if I want, or take a holiday. But Molly Maid is still my baby and I’m still very concerned with where it’s going. I think they’ll have to lock the door to prevent me coming in eventually,” she laughs. May|June 2014 elitefranchise 21
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Does lifelong income tick your box? Yes.
Free property investment e-book: bit.ly/ebm5
Platinum Property Partners DPS MAY.indd 1
01/05/2014 21:26
ADVERTISING FEATURE
Hot property A franchise with Platinum Property Partners could be all you need to become an awardwinning landlord
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Gertie Owen
latinum Property Partners (PPP) is an established, highly respected and successful property investment franchise. With a tried and tested model, PPP provides the specialist expertise and support to help you purchase, adapt and let your own profitable residential property portfolio. Gertie Owen joined PPP in August 2010 after 20 years looking after her children and being, in her own words, “a lady of leisure”. Various changes in her life cemented her decision to join PPP; as her children had grown into young adults Gertie found herself with increasing amounts of free time, and with this came a lust for a new challenge. Around the same time Gertie’s husband was made redundant, so there was potential need for an additional income stream. PPP appealed to Gertie as it offered a proven system to begin investing in property, providing cash flow as well as a growing asset base. Gertie had no previous buy-to-let experience, so it offered ability to achieve the income she wanted with the challenge she so craved.
Since joining PPP Gertie has bought, refurbished and fully tenanted five HMO (house in multiple occupation) properties and has met her personal target. This wouldn’t have been possible without the expert guidance and support that PPP offered her. Gertie has gone from having no experience of buy-tolet or HMO property development to the 2013 HMO Landlord of the Year, awarded by Landlord & Buy-to-Let magazine. Gertie is in good company - the award’s previous winner held the title for the last three consecutive years, has been a landlord for over 30 years and is a director of the Residential Landlords Association. Gertie believes what sets her apart from other landlords is the way she cares for her tenants. “I show it in all the things I do, from decorating all my houses at Christmas so it feels like home for them, to giving each tenant a Christmas present and also hampers to share,” she says. “I take note of all their birthdays to make sure I give them cards and give them all eggs and cards for Easter. When doing viewings I always pick them up from the station and I do my best to match the personalities in my houses, so they become good friends.
“After just about three years I am already earning approximately £126,000 per annum so I feel a great sense of achievement.” Gertie Owen, Platinum Property Partners
The new challenge Gertie craved has led to her being heralded as the best HMO landlord in the UK. However, the financial benefit has been beyond her expectations. “When I joined PPP my five year goal was to be earning £100,000 per annum, but after just about three years I am already earning approximately £126,000 per annum so I feel a great sense of achievement. If you want a new challenge or you’re interested in replacing or supplementing your income and want to ensure your pension provision provides you with financial security, PPP can help you. Begin your journey by requesting a free copy of PPP Founder Steve Bolton’s book Successful Property Investing here: http://pppl.at/ebm5e May|June 2014 elitefranchise 23
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BE YOUR OWN BOSS
We provide all you need to own your own commercial cleaning business! Every day nearly 11,000 JAN-PRO owner-operators across the world bring our clients the kind of high quality service we not only promise, we guarantee. It’s a reflection of the commitment that comes from the best training, equipment and measurable processes available. More importantly though, it’s a commitment that begins with a positive attitude and a drive to always do better, and that is what makes JAN-PRO a different kind of commercial cleaning company.
Training - Guaranteed Customers - Financing - On-going Support 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.
No one Supports you Better Jan-Pro FP March14.indd 1
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
WORDS: DARA JEGEDE
Making a splash Paul Thompson plunged straight into the deep end when he turned his favourite father / daughter pastime into a national swimming franchise
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ife used to be very different for Paul Thompson. After giving up a high-powered job in 1999 and travelling to the Caribbean, he became a stay-at-home dad to daughter Imani. Relishing the chance to spend time with his daughter, their days would always be jam-packed with activities. “I took her to a variety of baby-related classes, one of which was baby swimming,” he recalls. “Her physical and mental development was amazing. I just saw her accelerating away. It was the thing I looked forward to doing most all week.” The experience whet his appetite and Thompson soon signed up as an instructor. The lightbulb moment followed. “It was a life-changing moment for me and I realised I had real empathy and was absolutely born to do this thing called baby swimming which is quite funny, if you know me,” he laughs. The entrepreneur within Thompson swiftly surfaced and he began looking into the business of baby swimming. The family relocated to Ilkley, Yorkshire, and decided the time was to launch their own baby swimming business – unaware of the long voyage ahead. “We were just going to have a few classes but it went nuts and exploded around us,” says Thompson. “And hat’s where it all began, in June 2002.” The business of dunking toddlers under water, as one might envisage, would require some serious know-how and consideration; Thompson and wife Jess dived straight into research.
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ONE TO WATCH
We were just going to have a few classes but it went nuts and exploded around us
“There were no standards and very little professionalism around it, which was quite frightening,” he says. “We started to put all that in place. Right from the word go, we were determined to be as professional as we could be. We created systems and standards and put a lot of structure into it. We travelled the world clocking up lots of ideas and information – both scientific research and what people are doing – in order to put our programme together.” The company now works closely with the governing body and even developed a diploma in baby swimming, meaning interested parties can a gain qualification as they would in engineering. “But only through Water Babies,” Thompson interjects. With the boxes ticked on research and developing a comprehensive baby swimming programme, Water Babies launched with a meagre £5,000. “We put everything into our branding, our websites, and leaflets and so on,” says Thompson. They may be water pros, but the founders also put in some serious leg work on dry land. “We ran around the streets giving out leaflets,” Thompson recalls. “Jess had a background in PR so we did local PR as well. We take underwater photographs of babies swimming, quite powerful images, and we got a lot of free press.” Six months down the line, the first franchise opportunity came a-knocking. “Franchising happened to us by accident,” Thomson says. “I
got two phone calls in the same week: one from my sister-in-law in Bristol, and another one from friends who lived in Edinburgh. Both said they wanted to get out of the ‘rat-race’ to do something more rewarding and they were interested in what we were doing.” After some initial ambivalence, the Thompsons weighed up their options and decided that franchising was the best way to grow the business and to involve family and friends. “We are really particular about standards, quality and service and as a franchisor, you get to keep all of that and manage it and this suited us,” he explains. “As a franchisee you get to run your own business, albeit with a support structure, and that suited our friends.” The second Water Babies also went off with a bang, instructing over 100 clients within the first six weeks. The reality that they were responsible for hundreds of families quickly dawned on the founders and they went to seek some solid franchising counsel. The next franchise opportunity wasn’t too far behind. “After another six months of putting our systems, procedures and operating manuals in place, we got a call from another person who was our first independent franchisee,” Thompson says. Within 18 months, Water Babies expanded from four franchises to 40, growing completely organically. “There’s something unique about Water Babies and franchising in that we’ve never advertised for a franchisee,” explains the entrepreneur. Like Thompson, many Water Babies franchisees were people who had powerful careers in their previous lives. “The calibre of our franchisees tends to be very high but the main thing we look for are people who have a real passion for what we do,” he says. “Water Babies is very big on people.” The company’s ethic, Thompson says, is built around people and giving them a chance
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ONE TO WATCH
Most swim schools start from six months and above but we take them as young as the parents are brave enough to come to excel and then to exceed. “What makes us particularly unique is the incredibly strong bond that we develop between our parents and our teachers and Water Babies,” he says. “Parents tend to turn up at their first lesson very scared, with a two-week old baby, half a family and 14 carloads of equipment. Ten weeks later, they’re swimming this baby on their own and they are really empowered.” The ethic of empowering those he associates with is evident in both the management of the Water Babies franchise and the relationship Thompson has with his franchisees. “We’re probably the most supportive franchise in the UK. We’ve got 52 franchisees and a head office team of almost 30 people covering all areas of support for them” He explains that the franchise operates as a network of family-run businesses. “If I go
and see a franchisee I’ll expect to stay on their sofa,” he elaborates. “I’ll bounce their kids on my knee. We’ll cook tea while we’re talking. But we do business as well, so managing those two things is difficult and can actually be very challenging because you have to be a hard franchisor sometimes.” One can be expected to be a little hardcore when teaching 40,000 babies a week around the country. With those stats, Water Babies is the biggest baby swimming company in the UK and while there’s little to no competition, the founders would welcome some friendly rivalry. “It makes you sharpen your pencil,” Thompson elaborates. “It helps you really focus on what you do, it makes sure you don’t get lazy in the marketplace and it also helps spread the word. As long as the people who are practising are good and professional, there’s plenty of
space in the market for everybody.” But there’s still no harm in having some standout USPs, such as the age at which babies can dip their toes in the water. “Our youngest ever client was two days old,” says Thompson. “Most swim schools start from six months and above but we take them as young as the parents are brave enough to come.” Water Babies is a fast-moving young company and at 12 years old, the Thompsons are swimming towards a bright future. “Objective number one is to keep growing in the UK and Ireland, teaching more clients,” says Thompson. “Objective number two is to go international. We went to Ireland five years ago and were hugely successful there. We’re now going further afield into the Netherlands, Germany, Canada and New Zealand. We’re also looking at setting up a new franchise business called Water Bumps for pre- and post-natal pregnant women; the first of which will be rolling out in the next six weeks.” The success of Water Babies might be a good marker for what the future holds for Water Bumps as the franchise is yet to suffer a business failure. Now a seasoned franchisor, Thompson believes that franchising done really well means it’s not an adjunct to your business, it is the business that you’re going into. He concludes: “You are becoming somebody who is rolling out a network of businesses and your job is to support all of those businesses and make them successful.” May|June 2014 elitefranchise 27
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TAKE YOUR ROAD TO SUCCESS Turn £35,000 into £380,000* within 5 years of running your own lettings and sales business. With nearly 20 successful franchises across the UK, a buoyant rental market, a growing sales market and the back-up of an award-winning franchise model, make Martin & Co your next move. “After thorough research, I was confident that Martin & Co could deliver. I’m now a confident, knowledgeable letting agent who dominates my assigned franchise territory. ” Dennis Roodhart, Folkestone and Dover Franchise Owner
Make your move with Martin & Co. Contact us today.
01202 292829 www.propertyfranchise.co.uk
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*Lettings income only based on £650 average monthly rent.
To find out how you can be as successful as Dennis, visit www.propertyfranchise.co.uk
01/05/2014 21:17
Strong foundations with a Martin & Co franchise Peter and Rani Grieve have been successfully operating their Martin & Co franchise since May 2008. Leaving the corporate world behind they were determined to create a successful business that would support them to a high standard as well as be able to build up a capital value.
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hey are the proud owners of two successful businesses and a significant property portfolio. Both Rani and Peter had very stressful full-time jobs before joining Martin & Co. Peter worked as a Senior Manager in Commercial Property Lettings and was also the deputy Chairman of the British Institute of Innkeeping, whilst Rani worked as a Manager in Customer Services. In early 2008 they decided it was time to leave the corporate rat race and build a quality business in their local community. “Franchising was the best vehicle for us to establish a business quickly from a standing start, with the single most important factor being a widely recognised, strong brand. We estimated that growth was at least twice as fast as it would have been if we had simply opened a business by ourselves.” Having identified franchising as the best way to achieve their goals, they started to consider a variety of franchise opportunities. But with Peter’s experience in property and Rani’s customer service skills they soon decided that a property agency franchise would suit both their skills best.
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“We did a lot of research initially before even logging an interest with Martin & Co. But once we showed our hand as it were, it was really a matter of information gathering, business planning and sorting our finances. It took us about 2 to 3 months to make the decision as we had to fit the planning process around our demanding full-time roles.” Martin & Co is one of the only UK property agency franchise that offers a combined lettings and estate agency business with UK-wide recognition.With a network of just under 200 franchise offices, they are the largest property franchise business in the UK. “The Martin & Co brand gave us instant credibility and a quality high street presence. The business progressed to the extent that after about 14 months we could see decent growth and a bit of profit. Growth continued through year two and it was then that we realised that we were building a quality, sustainable business which was capable of delivering good organic medium and long-term growth.” 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. Martin & Co has been recognised for its award-winning service by its clients winning Gold for Best Large Letting Chain at the ESTAS (Estate & Letting Agent Awards) in 2009 and 2012, as well as Silver in 2010 & 2011 and most recently in 2013. Franchise owners like Rani and Peter take market share in their dedicated franchise territories through the Marketing, Media and Public Relations support provided by Martin & Co and by developing a sound understanding of best practice in the property industry. On lettings income alone, on average Martin & Co’s franchise owners who are high street based turnover £275k in year 3 and you can expect to build your business value to in excess of £380k in just 5 years.
ADVERTISING FEATURE
L-R: Rani Grieve, IanWilson Chief Executive of Martin & Co Plc, Peter Grieve. Peter & Rani receiving the award for Best Business Growth. “Having fully established the Worcester franchise, head office offered us the opportunity to acquire the Gloucester franchise as a re-sale in early 2010, and although the business was not as successful as ours, there was an overriding view that we could mirror the success we had enjoyed in Worcester. And now, after three years, this business too has grown significantly. Furthermore, because of strong profit growth, we were able to acquire a very well established and well run independent letting agency which we have successfully integrated into the core business this year.” Rani and Peter have developed a management franchise that provided them with the funds to not only acquire other businesses but also expand their buy-to-let portfolio, which now encompasses 4 properties. “As advice to anyone looking to join a franchise we would say: do your homework and your own business plan, take on board the franchisor’s forecast but challenge achievability. If you are looking to establish a business quickly, as well as operate within well thought through processes and procedures, then franchising is undoubtedly the best route.” “We would definitely buy the franchise again. Our plan is to continue to build a quality business through strategic acquisitions and to continue our organic growth. Ultimately we want to sell the business for a huge profit and retire to somewhere warmer than it is in Gloucester today!” If you would like to know more about the Martin & Co property franchise, you can call 01202 292829 or visit www.propertyfranchise.co.uk
01/05/2014 21:17
ANALYSIS
WORDS: ADAM PESCOD
Ideas factory Franchisees may not possess the risk-taking streak of your everyday entrepreneur but their ideas have led to some game-changing innovations. They are a resource that a franchisor can thus illafford to ignore
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ranchising and innovation. Some people may view them as opposing forces. Given that franchisees tend to buy into a tried-and-tested business model, it could be argued that many aren’t entrepreneurs or innovators in the traditional sense. However, it would be somewhat wide of the mark to suggest that franchising totally stifles innovation. Like all companies, the survival and success of a franchise depends on a regular stream of new products, services and processes. Ideas for such innovations have to come from somewhere – where would be better to turn for a franchisor than the network of franchisees that he or she oversees on a daily basis? Granted, a franchisee may be more riskaverse than your everyday entrepreneur. That lack of risk is, after all, one of the main draws of buying into a franchise as opposed to starting a business from scratch. But that’s not to say that franchisees are devoid of ideas. “By and large, your very good franchise owners
are ‘enterprisers’,” suggests Nigel Toplis, managing director of the Bardon Group, the multi-brand franchisor. “An enterpriser is somebody who will take a proven system and will tweak that system to benefit their own local circumstance.” A recognition of this should therefore lie at the heart of every franchise agreement, with franchisees able to conduct their business how they like, albeit with some constraints. “You don’t let them run riot but you do let them operate within the parameters of the franchise agreement and the brand,” adds Toplis. “Sometimes people forget that the franchisee is the managing director of their own company. They therefore have a right to be able to run their company, so long as it is within the context of the franchise agreement.” Indeed, granting franchisees a certain degree of freedom can prove beneficial to the franchise as a whole. The same can also be said of engaging with them on a regular basis. This is good practice in itself, but encouraging franchisees to put forward their own ideas whilst actively involving them in the innovation side of the business can reap significant rewards.
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McDonald’s is a great example of how such an approach can pay off in droves. The fastfood giant puts its franchisees at the heart of everything it does. “Our franchisees are outstanding business people in their own right, with years of experience and excellent business acumen,” says Thomas Kelly, vice president, franchising (north) at McDonald’s UK. “They are better placed than anyone to come up with new ideas, new ways of working that could improve their businesses.” McDonald’s franchisees therefore enjoy a decent amount of flexibility when it comes to their individual outlets. “Our customers have come to trust that whether they’re walking into a McDonald’s in Bristol, Birmingham, Manchester or Glasgow, they can expect the same great-tasting food and friendly service,” adds Kelly. “However, as independent business men and Thomas Kelly, McDonald’s UK women, our franchisees do have the freedom to help choose what their restaurant will look like, decide which design has the right feel for their area and of course are the decision-makers on who they hire and how they become involved in the local community.” Without a doubt, engagement with franchisees has contributed to McDonald’s’ success in food and food service innovation. As Kelly explains, the Big Mac, Filet-O-Fish and even the very first Drive-Thru were all thought up by franchisees. “It’s this historic culture of partnership and collaboration that is a competitive advantage for both the brand and the business in its day to day operations,” he says. Equally though, the company’s franchised outlets – accounting for 70% of its UK presence – serve as useful testing grounds for innovations that may have initially been proposed at a more senior level. “Making sure
that the company is investing shrewdly in the right areas really sets us apart,” Kelly explains. “From Iced Fruit Smoothies and Frappés, to giving all our employees access to nationally-recognised qualifications, some of our most iconic moves have been researched, trialled and piloted through our franchisee community.” Whilst inarguably impressive, big ticket innovations such as these are quite a rare breed in franchising. However, that’s not to say that innovation isn’t a consistent force. Franchisees regularly tweak and change their way of doing things in a way that enhances both their own business and the franchise network as a whole. “A lot of the innovation that happens within franchising is almost what I would call ‘incidental innovation’,” says Toplis. “It happens almost on a daily basis. Franchisees will come to us, say ‘we have done it this way and it seems to work better for us’ and we will say ‘we should do it that way’.” He cites one Zip Yard franchisee’s use of Twitter for marketing purposes and another’s offer to provide email marketing services to the whole group as examples of this. Indeed, the latter was replicated in another of the Bardon Group’s brands, Recognition Express, a name badge franchise.
Our franchisees are better placed than anyone to come up with new ideas and new ways of working that could improve their businesses
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ANALYSIS
It is about giving franchisees the scope to try things Peter Kirton, Esquires Coffee Houses
But Recognition Express has still enjoyed the benefits of one game-changing innovation, brought about by the ingenuity of a franchisee. “One of our franchisees said ‘if we made that badge look three-dimensional, we could charge more money and we could have a better product’,” explains Toplis. “He essentially invented ‘doming’, which is just a resin and a hardener combined over a piece of plastic. This allowed us to actually produce a badge in full colour. That is innovation and it works within the confines of the franchise. It works for both parties.” Esquires Coffee Houses is also no stranger to innovation in its ranks. One of its franchisees, Steve Prime, was named bfa Young Franchisee of the Year last year. His decision to alter the opening hours of his Esquires outlet in Coventry’s transport museum to accommodate music, open mic and comedy nights has been replicated by other Esquires franchisees. “It is about giving franchisees the scope to try things,” says Peter Kirton, managing director of Esquires. “Provided they are not detrimental to the entire format and don’t have negative repercussions on the model, we tend to give them the heads up and support them with any ideas they might have.” Kirton explains that Esquires regularly holds committee meetings with its franchisees “to bounce ideas off them and hear their ideas”. One innovation that came out of
these meetings was the company’s Designer Milkshakes, a step up from its traditional Italian milkshakes. It would be naïve indeed not to involve franchisees in such matters, Kirton suggests. “They have already invested substantially in their own business and it would be stupid not to take their ideas, discuss them and bounce them around,” he adds. “It is a resource to use; it is not just one to dictate to.” Certainly, Kirton is a great advocate of those Esquires franchisees that have a certain, if restrained, entrepreneurial streak about them. However, he admits that the franchise model does make such people a fairly rare breed. “Most of them aren’t in that mode,” he says. “If someone is very entrepreneurial, they tend not to suit to franchising very well, but there is balance of people in the middle who are able to walk the tightrope between the two and they are great to work with.” One thing’s for sure: McDonald’s wouldn’t be where it is today without its franchisees. And Kelly believes that any franchise that shies away from innovation – and fails to include franchisees as part of that – is seriously missing a trick. “Encouraging innovation in franchising is quite simply good business sense,” he concludes. “It makes a business more resilient and more responsive to its customers’ needs and for us, has been a key driver of our success.”
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Providing flexible workspace for businesses for 20 years! Basepoint has proudly supported thousands of businesses over the past 20 years and currently provides over 1,400 companies with unique workspaces; from a 1 person managed office to open plan spaces for 100 people. So contact us today and our staff will do all they can to help you succeed... ...our business is your business.
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01/05/2014 24/03/2014 21:34 14:38
We’re looking for ‘stars’ who have experienced the all-round benefits of sport and are passionate about sharing with children a fun, positive and life-long commitment to being active.
...and much more.
To find out more about fun and rewarding careers through our Franchise Opportunities. visit www.a-starsports.co.uk or call 07796 190169
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01/05/2014 21:42
ANALYSIS
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It seems as though it’s not only budding, entrepreneurial singles that are cashing in on the success of a franchise. Couples are also taking the plunge
WORDS: JOE JEFFREY
Two’s Company
orecambe and Wise, Mork and Mindy, Starsky and Hutch, Torville and Dean… we could go on. The list is endless. Not exactly double acts you’d associate with a franchise business, however. A husband and wife duo is a more common sight in the world of franchising. In the post-recession climate, many start-ups are finding it increasingly hard to succeed. With statistics released by Bloomberg indicating eight out of ten entrepreneurs who start businesses fail within the first 18 months, many married couples are plumping for franchising, favouring this method of following a tried and tested formula over starting up alone. “We’d had dreams for many years of running our own business and working together,” says half of one such couple, Gordon Dickens. “With the way the world’s economy has evolved, a franchise has become a significantly more appealing prospect than setting up a business in its own right.” For Dickens and his wife of 31 years, Maria, Tutor Doctor – which provides academic support to students on a one-to-one basis, using May|June 2014 elitefranchise 35
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ANALYSIS
When we were looking at starting a business together, we had to appreciate that we were from very different backgrounds Maria Dickens, Tutor Doctor
a tutor as more of a mentor or guide as opposed to a formal teacher – has provided them with the business model they felt was just what the doctor ordered. As Maria explains: “When we were looking at starting a business together, we had to appreciate that we were from very different backgrounds – my experiences were largely of family life and Gordon’s were from the corporate world. Somehow, someway we had to look for something that was going to fit both of us and, thankfully, I think we’ve made the best choice possible in the sense that we can both bring something to the business.” “I worked for a number of international companies in consumer goods, doing quite a lot of travelling,” adds Gordon. “From my twenties to forties I was away as much as I was at home so, whilst my young lads were growing up, weekends were very important to me. As the last of our three boys was ready to go off to university, it kind of lent itself to us taking a different direction,” he says.
But what of the old adage concerning never mixing business with pleasure? Maria believes she and her husband have found the right balance. “Although we’ve both got our business heads on, we need to remember that we both need some downtime, relaxation and balance. We try to do things together as much as possible and it’s good to remember that you’re a couple.” Gordon agrees. “We try to have an evening out together, going to the cinema or for a meal, just to distance ourselves from business and be able to relax and enjoy each other’s company rather than to be continuously focused just on the business.” Another married couple that concur with the above sentiment is Janet and Andy Hodge, from Kent, who, after retiring to Spain in 2002, returned home to cloudier climes 11 years later and bought into Cleanhome, the domestic cleaning franchise. “I think separating business life from married life is something that needs to be worked on,” says Andy. “When you run your own business, you have to make yourself available when the client wants you. But as we get older there’s a greater need to separate work from your private life with little things like putting your phone on silent. When it’s your own franchise, there’s every incentive to make sure things are running smoothly, especially if you want to grow the business. You want to feel like you’re doing the best job you possibly can.” Janet chips in: “Any disagreements we’ve had have been more out of frustration. Every time you put yourself in the middle between clients and cleaners, there’s the potential to be let down. It doesn’t happen very often, but when it does, it tends to be a last-minute thing and it’s imperative that any situations that rise are dealt with as soon as possible. Essentially though, it’s just dealing with the frustrations of running a franchise.” For the Hodges, who have been married for 27 years, the Cleanhome franchise appealed because of the ease of access. “When we decided to move back to the UK, I did some research into franchises involving domestic care, but they wanted a great deal of investment; so we went to the other end of that spectrum and researched domestic cleaners,” says Gordon. “Cleanhome interested me because it was new, young and there was the opportunity to be involved from the early stages.” And what sort of advice would our franchisees have for other couples looking to get involved in the world of franchising? “If the combination of the two is greater than the individual parts, then you have every likelihood of succeeding,” concludes Gordon. “If you try to change yourself or your personality you’re likely to create difficulties for yourself, which may cross over from business into personal.”
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Do you want a future in Photography? ABC Photography specialise in photographing Nursery schools, pre-school groups and Mother & Toddler groups. As a mobile Studio ABC Photography also take portraits in customers’ homes, providing top end quality photographs reasonably priced. Taking photos that sell themselves is a great way to make a very good living and as you work from home, you don’t have the overheads of a Studio!
No photography experience required! All training and support provided.
If you like working with children, an ABC Photography franchise might just be the best career move you’ve ever made.
For an information pack call 0121 704 1016 www.abcphotography.co.uk email: info@abcphotos.co.uk
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TALK TO US ABOUT WHAT’S HOLDING YOUR BUSINESS BACK... The ICAEW Business Advice Service is an easy way to get expert financial advice and reassurance on your business. Planning your business • Self-employment or Ltd Co. • Preparing your business plan • Raising finance
Managing your business • Cash flow management • Monitoring progress • Budgeting
Starting your business • Tax, NIC, VAT and HMRC • Essential accounting records • Insurance
Growing your business • Additional funding • Expansion and restructuring • Exporting opportunities
You can start today with a free, straight-forward discussion with an ICAEW Chartered Accountant. There’s no obligation after your first session – just practical thinking to help your business succeed. businessadviceservice.com bas@icaew.com +44 (0)20 7920 3561
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11/10/2012 09:36
FINANCE
The world of the humble bookkeeper is being revolutionised by cloud technology and franchise businesses are wasting no time getting in on the act
Bookkeepers take to the clouds
WORDS: JON CARD
N
obody likes paperwork: trawling through receipts, spreadsheets and inputting data into fields can be boring and soul-destroying work. Entrepreneurs don’t want to be accountants, but then accountants don’t want to fiddle with paperwork either. The legwork of business administration is borne by the humble bookkeeper, who collates all the information from sales ledgers, suppliers, debtors, staff expenses and bank statements and presents them in neat packages for the accountant to turn into a financial report. “We are like the glue in the middle, we provide the books for the accountant so they can do their financial reports, which is where they make their money and add value,” says Mandy Bagot, founder of franchising business Cloud Bookkeeping, which she established in 2010. “Accountants don’t to want to go through receipts,” she adds. Her business is one of a number of bookkeeping and accountancy franchises that are embracing new cloud-based software and shaking up the sector. “Cloud technology has opened up the market and is going to get May|June 2014 elitefranchise 39
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software then the franchisee may have a hand in recommending the best package for them. Handling software issues and functionality problems is part of the job for these franchises. “The problem with a lot of cloud-based software is that it doesn’t have the same functionality as desktop software,” says Curteis.
Is it for you?
When we launched, the cloud wasn’t so huge but everything has grown quickly since then Lisa Curteis, Rosemary Bookkeeping
rid of all the bookkeepers that don’t want to change,” says Bagot. She may well have a point as the cloud has the capacity to disrupt many industries and when combined with an easily replicated franchise model, it packs a rather powerful punch.
The right people
There are different variations on these franchising models, and people from different business backgrounds can get involved. Bagot’s franchisees aren’t necessarily bookkeepers, instead they are networkers and socialisers that want to connect with other businesses. “They don’t have to have bookkeeping experience, but they need an analytical and logical mind and attention to detail. They have to be able to sell and so they need to be a people person.” For Lisa Curteis, director of the Rosemary Bookkeeping franchise, the message is similar and those who buy one of her franchises receive training where required, she says. “If you have a wealth of experience in bookkeeping we don’t expect you to go through all that again. Instead we’d focus on areas where they need help like marketing and website. Not all franchisees are bookkeepers; one of our top franchisees is from an IT background.”
The model
Franchisees purchase an area, which tend to cost around £17,000, and then work to attract business. Typically, their clients are small businesses that need help getting their books in order but are too small to hire someone fulltime. The main job for franchisees is to network (see case study) and bring in the sales. In some
cases, the franchisee does the processing, or sometimes they hire a bookkeeper, or even send it off to be done centrally. The franchisee also liaises with the client’s accountant, who will prepare the financial reports. From this franchisees can earn a few hundred pounds per client each month. Therefore if a franchise can amass 25-30 regular clients, they could be turning over in the region of £100,000. For Bagot, this is precisely her aim: “I want all our franchisees to earn £100,000 per year. You don’t need many clients to do that.”
Software
The growth of cloud technology is shaking up industries and accountancy is no exception. For the franchisors however, it means they need to be up-to-date with all the latest software and this can be a challenge. Although Sage has been the dominant force in UK accounting software for some time, there are other packages, which some prefer, especially in the cloud. Intuit’s QuickBooks and relative newcomer Xero has its supporters too. For franchisees it means the business owners often call the shots and flexibility is required. “You’ve got to be aware of all the different software and to be able to offer multiple solutions to your clients,” says Bagot. Curteis similarly regards cloud-based software as the way forward and has seen a lot of growth in the past few years. “When we launched, the cloud wasn’t so huge but everything has grown quickly since. The software providers are really pushing the cloud solution and more accountants want the bookkeepers to use it.” Of course, some small businesses get by with simple spreadsheets and if they do choose
The UK is not short of small businesses and many would benefit from a bookkeeper and better financial records. This is a growth area and, as it is utilising the latest technology, it might well prove to be highly disruptive. However, franchisees should be aware that franchises don’t come without risks and that they tend to be hard work, especially at first. It is also essential that the business has a good relationship with their franchisor as they will be working together for many years.
Networking to success Alistair Moffat had grown tired of his office job working as a demand planner for a battery business; he disliked his commute, wanted to spend more time with his family and become his own boss. After looking for a business to buy, he found his opportunity at a franchise exhibition where he met Mandy Bagot, founder of Cloud Bookkeeping. She encouraged him to purchase a franchise. “We thought we’d try to start it part-time and then go full-time when the business was more established. But after the first year we realised that we couldn’t do that. I needed to be at breakfast networking events when I was commuting to work. I gave up work in September 2012 and gave it my full attention. I started networking three to four times per week and picked up 11 clients in that first year. That doesn’t sound that much, but it’s ongoing business every month.” Moffat now has 15 clients and made revenues of approximately £30,000 during his last financial year, although he expects to grow significantly and his wife is now working with him on the business. “It takes time to build relationships and trust. The first year was largely about getting our brand out there and getting people to know me. It really is about networking, networking, networking.”
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Buy a sandwich
franchise with
Why buy a sandwich franchise? • The British ‘on the go’ sandwich market is currently valued at £3 billion • 1.8 billion sandwiches are bought in the UK every year • A healthier fast food option
Visit FranchiseSales.com to find out about buying a sandwich franchise – and more!
FP AD PLACE.indd 1 Talk Business Advert - February 2014.indd 1
01/05/2014 20:57 07/03/2014 10:36:03
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
Zip Yard May14.indd 1 07.13_Resize to 210x297mm.indd 1 Zipyard_Advert_MASTER
01/05/2014 15:50 21:19 15/10/2013
15:50
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. May|June 2014 elitefranchise 43
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FINANCE
Running dry Finding out your franchisor has gone into insolvency is the last thing any franchisee wants to hear. But all is not lost: there’s still every chance you can survive the drought
WORDS: JOSH RUSSELL
G
iven the fact that they replicate a tried and tested model rather than blazing trails like regular start-ups, franchises have always been perceived as a stabler economic bet than entrepreneurial business. But this doesn’t mean they’re immune to running into financial difficulty. The recent high-profile insolvency of Quiznos, the submarine sandwich franchise, in the States has left more than a few franchisees wondering: what happens to their business if their franchisor runs aground? It’s not always easy for a franchisee or anyone else outside of the main company to recognise signs it may be struggling. On occasion, insolvencies and bankruptcies amongst franchisees can be the trigger that sets larger events in motion. Tim Carter, partner at Stevens & Bolton, the law firm, highlights a recent example. “The franchisor’s insolvency was born out of the fact that a number of its franchisees went bust,” he explains. “The franchisor held the head leases on a number of the properties, so it became liable for rents when the franchisee underlessees became insolvent, leading to its own insolvency.” However, even if most of the franchisees are in rude health, it doesn’t necessarily mean all is rosy back at the ranch. “It’s probably a little naive to think just because the underlying franchise income is being paid up that there is no risk,” Carter says. As with any
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business, there are plenty of things that can cause a franchise to founder. “Maybe it’s expanding too quickly, maybe the revenues just aren’t sufficient to keep it afloat, maybe it was other interests that the companies have apart from the franchise business.” Irrespective of the underlying cause, when a franchise runs into financial difficulties, the directors are obligated to take quick action. “In this scenario, there is a shift in where the duties lay, away from the shareholders and toward creditors and minimising their losses,” says Carter. This inevitably means the company’s directors need to consider entering into an insolvency process and take professional insolvency advice. As in any business, there are two main forms this can take, which have radically different connotations for franchisees. Almost certainly the preferred form for any company will be administration, in which the company is placed into the hands of administrators to address its financial problems. As Carter explains, this has several objectives. “The first one is to save the corporate vehicle itself,” he says. However, this is the best case scenario and is a rare result in insolvency situations. “The second objective is to effectively achieve a better return for creditors than would otherwise be achieved if the company were broken up,” Carter comments. One method of achieving this would be to sell the company as a going concern; in this scenario its important to note that all franchise agreements will still be valid and legally binding, sold as a part of the company’s value. Obviously, this can be an ideal solution for the franchisee and means it will be very much business as usual. “They’ve got a new person supplying them with stock and the
merchandise that they need to carry on the franchise.” However, there are other methods of maximising creditor returns that are perhaps less favourable to the franchisee. “The administrator has a duty to all of the creditors: they have to act in their best interest,” Carter explains. In some cases this will involve selling off some of the main company’s existing assets at a cut rate, which can obviously undermine the franchisees’ own positions. If administration fails or is for some reason untenable, then the only other option is liquidation. “Liquidation is much more terminal,” Carter says. “It’s effectively a fire sale of all of its assets.” If a franchise is being broken up in this way, a franchisee might wonder what happens to the franchise agreement they hold with the entity entering an insolvency process. Essentially, the contract is null and void. “If the franchisor goes into liquidation and is not able to continue its obligations under the agreement, we would argue that there’s a repudiatory breach,” Carter explains. “The franchisee under common law principles is able to accept that breach as bringing the franchise agreement to an end.” But when you’ve ploughed years into your business this may not feel like much of a win, particularly as in normal cases after the close of a franchise agreement the franchisee would be bound by a non-compete clause to prevent them using the experiences they’ve gained to set up a rival business. Fortunately, it seems somewhat unlikely a court would side with the franchisor if they tried to hold their former franchisees to this. “They will say: ‘it’s because of your fundamental breach they terminated: you’re now not able to prevent them from continuing to trade because it competes with your business’,” explains Carter. However, this doesn’t mean a franchisee is entirely safe if they are still making use of assets that technically belong to the franchisor. With a lot of asset-reliant franchises – for example food franchises that require specialist equipment – a loan will commonly be extended at the beginning of the process to help purchase them. “If that loan is repaid on the entry into the insolvency Tim Carter, Stevens & Bolton process, those fall outside of that franchisor’s estate so nothing can be done,” Carter comments. “However, if they’re unpaid, effectively what the liquidator or administrator would look to do is recover those assets.” One asset the franchisees definitely won’t be able to hang onto is the brand itself. Obviously if there is any perceived value in the franchise’s intellectual property (IP), it will almost certainly be sold off to pay its debts. Carter explains: “Ideally, they will want to sell the brand and underlying franchisee business as a going concern to someone else who’s prepared to take that name and carry it, and the business, on.” Franchisees desperate to hold onto their brand do have another option however. Carter points to one high-profile case in which a group of franchisees actually banded together and bought the IP for themselves. But whether this is the right solution will very much come down to the franchisee and IP involved. He explains: “The franchisees have to make a decision: whether it’s such a pull that it is worth buying the IP or whether they just want to carry on under a different name.” Whilst there are certainly no guarantees when a franchisor becomes insolvent, it’s important to know that just because the main company runs into trouble it doesn’t mean that franchisees don’t have every chance of keeping their business afloat.
It’s probably a little naive to think just because the underlying franchise income is being paid up that there is no risk
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Exciting, innovative Lettings Franchise opportunities from ÂŁ12,500 Our Property Management Centre removes the administrative burden, leaving you to be totally mobile & focus on growing your SureLet Franchise
Bespoke Sign-writing have the car vinyl Cloud based technology synonymous with runs your diary, the SureLet brand accesses your property (No need for an office) portals, sends emails and connects to in-car printer Send all paperwork to our Property Management Centre
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ADVERTISING FEATURE
Franchising stronger than ever The franchise industry is growing rapidly as the economy continues to drag its feet and job security is a bit of a question mark for many
T
he number of companies going down the franchising route grew around 3.5% last year and this isn’t showing signs of slowing down. It’s because a franchise offers you a successful, proven template that you can learn quickly and get up and running with your business. Leading lettings franchise SureLet is continuing its success. Not only is it a franchise that’s growing year-on-year, it is well established within the ever increasing rental marketplace. SureLet’s managing director, Colin Poole, said: “We have always had lots of interest in our franchise opportunity, however, we are finding that we are more busy than ever. The last few franchise shows we have attended have displayed just how popular the industry is. There are companies in virtually all business sectors. “The growth is also evident as the prospective franchisees are much more knowledgeable. As the route is such a viable one, people are researching to find the right company to help secure their future. “We have reacted to this level of research though by providing what we call SureLet Discovery Days. They are the perfect answer as they allow for a much more relaxed approach to meeting with our team. “You spend the day with the franchise team and get to see an existing office by having a confidential meeting with current franchisees; you can ask the questions you want to the people who have been in your position.” Of all the franchising sectors, residential lettings is one of the most competitive out there. But with so many options, how do people choose? SureLet Nottingham franchise owner Mathew Trinder said: “I am one of the SureLet newbies and I was totally baffled by the amount of options and routes. “I had done a lot of research and ended up with
three companies, one of which was SureLet. I had a meeting with all three, following which I made up my mind: SureLet was the option for me. “I felt as if they really cared about their company, and had the passion and insight to make anyone taken under their wing succeed. “After investing and then having seen all of their marketing quoting ‘Join the growing family’ and that they were honest, professional etc. I really can vouch for that; they are supportive, knowledgeable and innovative. “It sounds strange but one of the factors which influenced me was their use of the latest technology and how they embraced online platforms such as Facebook and Twitter.” SureLet have been in the franchising world for ten years now and the continued revival of their opportunity is because of the way they use the latest technology and software enhancements. The other reason is due to the marketplace in which they operate; the lettings industry is rapidly growing as the demand for rental property increases. Darren Walker, SureLet franchise sales director, said: “The market is strong and will continue to grow for years to come; it’s because of the rise in the cost of housing and the need to be more flexible to make a living. “It’s the perfect industry to start a franchise business in and our set-up and support system gives you all the tools you need to make it a success. Plus you don’t need any prior experience as we have a comprehensive training program
It’s the perfect industry to start a franchise business Darren Walker, franchise sales director, SureLet
that allows you to be up and running inside of four weeks.” Fit your work around your life Buying into a franchise allows an individual to build their work around their life, instead of the other way around. Sunil Mehta and Nimesh Shah own the Hemel Hempstead SureLet. They said: “We loved our previous jobs and the fast-paced, competitive, highly lucrative elements were exactly what we lived for. “But the love for the job faded when we started thinking about settling down and starting families. We needed a job that offered us the flexibility we needed and franchising was the perfect route. “The most poignant moment was when one of our MDs mentioned that he’d missed his son’s nativity play three years in a row – this was the turning point for us and really signalled the need for a better quality of life and more time. “With a franchise you already have an established team of legal professionals and highly experienced support network on which you can call if you need help. “Also the initial set up costs for websites, accountants etc. when starting a business can be excessive, whereas with a franchise, you already have these in place. “With the SureLet model, we have the flexibility to go out and do the fun side of the job without having to be bogged down with the administrative aspects of a lettings business, because the SureLet Property Management Centre takes care of this for us. The Property Management Centre team is the lifeblood of SureLet. They take care of all the administration, leaving SureLet franchisees to focus on building their business. This highly skilled team looks after rental arrears, deposit disputes, referencing, maintenance issues, renewals and much more. They are on hand 24/7 to ensure that all SureLet franchisees and landlords are looked after and issues resolved quickly and efficiently. Nimesh and Sunil added: “We now have the life we want. We have put a lot into our business and that’s the best part of it, it is our business. More importantly, we’re both pleased to say that we haven’t missed any of our kids’ plays…” Managing director Colin Poole added: “Our vision is simple. We want to continue to build on our successful lettings franchise model and make a real difference in the Lettings Industry. We want to expand our network with enthusiastic, vibrant people and continue to provide our franchisees with fantastic support and advice.”
For more information call 01452 313 313, email Info@SureLet.co.uk or visit www.SureLetFranchise.com May|June 2014 elitefranchise 47
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INTERNATIONAL
Master and WORDS: Farrah Rose
Commander Finding a suitable partner is an essential part of successfully expanding a franchise overseas, says Farrah Rose, director of international development at the International Franchising Centre
T
aking one’s franchise overseas for the first time is undeniably an exciting prospect. However, an understanding of the mechanisms involved is absolutely crucial if one is to have any significant chance of success in foreign climes. Master franchising is typically the method used by existing franchisors to replicate their business in other countries. The structure of the business will be the same – the process of proving and adapting the system before roll-out to sub-franchisees will mirror the franchisor’s experience in their home country. All the necessary franchising skills can be transferred to the master franchisee so they will know ‘how to run the franchise’ as well as knowing ‘how to run the store’. The master franchisee basically becomes the franchisor in their country and has all the dealings with their domestic franchisees that the original franchisor has with those in their own country. In a nutshell, it is the responsibility of the master franchisee to effectively introduce and grow the franchisor’s business in the territory, maintaining all of the required standards, and it is the franchisor’s job to train them how to do it and subsequently support them in doing so.
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Applause for the new Franchise..
New Franchise Opportunity from IFG! 3 great features of the IFG 50/50 franchise • Leverage your capital • We handle the paperwork • Earn commissions on ‘out-of-the-box’ transactions
This is your opportunity to be in control of • Your Income potential • Your Capital • Your Work Schedule And, earn a well-above average ROI!
IFG 50/50 franchisees provide short-term working capital for small businesses by purchasing current, quality invoices at a discount.
For more information: Tel: 0845 834 0332 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.co.uk Interface Financial Group FP March14.indd 1
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INTERNATIONAL
Preparation and marketing
The potential master needs to demonstrate that they are adequately funded and skilled to develop business in their country
When you consider that the master franchise fee for a whole country for a service-based franchise is often less than the cost of setting up a single unit outlet for some food service or premises-based retail franchises, one can see why more people are thinking ‘why should I just become a franchisee when I could be a master?’ Of course, the skills required of a master are very different but for someone who is of the mindset of a typical franchisee, i.e. not too entrepreneurial and looking to be part of a proven system with established support structures, master franchising can offer far greater potential than simply running a single franchised outlet. Similarly, for a franchisor whose network is well-established in its home market, the lure of international franchising can often be irresistible. The dream is often made more attractive when individuals or businesses from foreign countries approach that franchisor with the question “can I do what you do in my country?” But why should someone who approaches a franchisor out of the blue be the right person to operate that system in their country? Indeed, who says their country is right for that system? So how do the parties meet their ideal match?
Many years of practical experience helping franchised businesses move around the world lead me to believe that it is a much easier process if both parties engage with The Franchising Centre’s network of professionals than if they try to do it by themselves. The consultant in the franchisor’s home country will prepare the franchise offer package and development plan then work with the partner consultant in the destination country to research the market for the relevant product or service in the target market. Once all parties are confident that a marketable package has been produced, the destination market consultant will trawl their database of qualified investors who have registered to be approached when a suitable opportunity becomes available. Sometimes, an executive recruitment service can help to team up serious investors (‘the money’) with an ambitious franchise development manager (‘the man’) in order to create the ‘dream team’ to develop the new master franchise operation. After all, a good franchisor will want to be convinced that the chosen partner has as many of the necessary resources for success as possible.
Recruitment
Whatever the source of an enquiry, it is more likely to move through the recruitment process if it is professionally followed up and there are clear stages through which it must pass. Our international franchise development team spends as much of its time working for potential masters as it does for franchisors and the things to consider are a mirror image of each other. Both sides should be looking for positive mutual commitment to building a sound business over many years and this will involve working together with a common-sense approach to financing, training and support. The franchisor needs to show evidence of a policy decision to embark on and properly resource, as well as an international development programme; the potential master needs to demonstrate that they are adequately funded and skilled to develop the business in their country. Both sides should have input to detailed market research on the product or service as well as considering the potential differences in key ratios such as property costs, wage rates or petrol prices. They should also build in some franchising research – how does
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the franchising market for potential franchisees differ between the countries and is the proposed fee structure and rate of franchisee roll-out realistic? What about the costs of franchisee recruitment, or local laws and cultural differences that may affect the operation? The candidate will also want to know about the franchisor’s track record. If the home market is a country that requires pre-contract disclosure for domestic operations then they should be given a copy of the relevant disclosure document and contact details for other international master franchisees should also be provided as a matter of course. Before even despatching marketing materials, qualifying the potential master can start with simple telephone screening to decide whether there is a potential match based on the profiling criteria established before the recruitment project starts. Following that will be further telephone or personal meetings, establishing that appropriate finance and experience exists,
Both sides should be looking for positive mutual commitment to building a sound business over many years
all leading up to the all-important ‘discovery day’ at the franchisor’s office in their home country. By the time the candidate gets to this stage they will need to be pretty well sold on the opportunity because it is obviously a serious commitment to make such a trip. Similarly the franchisor will need to be pretty well sold on the candidate to devote the required amount of time and personal resource to the visit. It would be difficult to achieve such commitment without the involvement of a mutually-trusted third party. After the discovery day, when the candidate returns to their home country, the local consultant can help to keep the impetus going by obtaining feedback from, and providing it to, both parties as to how things went and what outstanding issues need to be resolved. Assistance with development of the roll-out plan and obtaining working capital finance
from local banks is an added benefit at this stage, as is access to qualified legal support to deal with negotiation of the agreement. Of course a franchisor can do all, or most of, the above themselves if they have enough experienced staff and plenty of resources, but this is rarely the case and the added complication of time differences makes it worse. Having a third party, who understands franchising, to nurse both parties through the process can be invaluable. International franchise agreements are extremely complex and can best be devised by working with an experienced consultant who can negotiate to broker a deal between the parties. Far too many franchisors and master franchisees rush into signing agreements without considering, or even realising, what can go wrong in practice. A two-handed team of consultant and lawyer is the best asset you can have, whichever side of the deal you are on. May|June 2014 elitefranchise 51
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Time for a change
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Whether it’s the decision of the franchisor or franchisee, a franchise resale is a common occurrence in the world of franchising. Kate Legg, associate at Higgs & Sons, talks us through the ins and outs
WORDS: KATE LEGG – WWW.HIGGSANDSONS.CO.UK
Y
ou’re a successful franchisee and you’ve been running your business profitably for several years. You’ve put a solid team in place and you have a loyal customer base. The kids have flown the nest. You’ve carefully squirrelled away some of your cash for the future. Now it’s time to take things easy and start enjoying life. For whatever reason, life has moved on and growing the business is no longer your priority. Or perhaps you’re the franchisor. Your franchisee has gotten a bit too comfortable. He is happy with the income he makes and quite content to let the business tick along nicely. He doesn’t want to invest the time and effort into growing the business any more, so he takes his foot off the gas and lets the business just coast along. As a franchisor, this is less than ideal; it may be time to start thinking about replacing the franchisee with someone with more drive and a desire to continue to grow the business. Whether you’re a franchisee or franchisor, there will come a point when it’s time to part company. Most franchise agreements will be for a fixed term with no option for the parties to terminate by giving notice. This means that the best option when the time comes to exit is likely to be to sell the franchisee’s business on to another franchisee. A franchise resale can offer many benefits to all parties. For the exiting franchisee, there is an opportunity to realise a capital value. Selling the franchise to another franchisee as a going concern is likely to be the best way to maximise the sale value of the business. From the franchisor’s perspective, offering the opportunity for resale can help in the
recruitment process. A network is going to be more attractive to a potential franchisee if there is the ability to make an income during the term of the franchise agreement and the option to generate a capital sum on sale of the business. The franchisor may also use the prospect of a resale to help motivate franchisees who may have become stuck in a rut. If the franchisee understands that he would like to achieve a certain price on sale of his business, he can work towards ensuring that the turnover, profit margins and other key performance data are sufficient to support the desired price. The franchisor will have a key role in managing the franchisee’s expectations. It’s not just the franchisor and exiting franchisee that benefit from a resale. There are advantages for the incoming franchisee to buy a resale rather than starting from scratch in a new territory. For starters, the new franchisee will be taking over a going concern which will be generating sales and income from day one. In contrast, it may take several months before a new business is ready to launch and is making its first sales and even longer still before the cash starts to roll in. In addition, there will be greater certainty if a franchisee buys a resale. Ordinarily, a new franchisee will prepare a business plan based on his estimates of the sales he expects to make and costs he expects to incur in the business. In a resale, the franchisee will be able to base his figures on the previous track record for that business, knowing the actual sales and profit figures in the previous years and months. Of course, there is no guarantee that all of the existing customers will remain with the
business if the current owner moves on. The success of the franchise will still depend on the efforts and abilities of the new franchisee, but the franchisee will at least have some actual data to base his estimates on rather than making an educated guess.
Types of sale
If the outgoing franchisee operates through a limited company, there will be a choice of whether to sell the assets of the business or to sell the shares of the franchisee company. Historically, many franchisors would only permit an asset sale; however because they are often advantageous from a tax perspective, share sales are becoming more common. Put simply, if the assets are sold, the buyer will form a new company and the existing stock, furniture, fittings, equipment, contracts, employees and any rights to occupy premises will all be transferred into the new company. The outgoing franchisee will retain any liabilities incurred up to the date of the handover from buyer to seller. In a share sale, all of the assets, equipment, contracts and employees remain in the original company but the owner of the company changes. This means that in the case of a share sale, the buyer takes the company “warts and all” and will inherit any historic liabilities as well as the assets. There are many factors which will influence the choice of asset sale or share sale. Professional
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3 Negotiation of the sale agreement
In most established networks, the franchisor will have a standard sale agreement which will form the basis of negotiations. The buyer’s solicitor and seller’s solicitor will then agree any changes to the standard document to reflect the details of the specific deal. Once the agreement has been agreed between the buyer’s solicitor and the seller’s solicitor, the franchisor will usually want to approve the final form document. advice should always be taken from an accountant and a lawyer before the final decision is made. It is also worth discussing this with the franchisor who may have their own policies on whether share sales are permitted in the network.
Process of sale
Whether a share sale or an asset sale is chosen, the first step will always be to consult the franchise agreement and franchisor. Most franchise agreements will set out a procedure for resales which will include giving the franchisor the right to approve the potential buyer; and a right of first refusal for the franchisor to buy back the business itself. Once a buyer has been found who is acceptable to the franchisor, the process of sale will comprise the following steps.
1 Agree basic terms
The buyer and seller will need to agree the basic terms of the deal. These will include: • How much is the buyer paying? • What is included in the basic price and will the buyer be paying for any extras – for example is stock included in the price, or will stock be subject to a valuation at completion? • When is the price payable? For example, is the whole amount payable when the sale completes, or is part of the price payable at a later date? • When are the parties aiming to complete? • Is the seller required to provide any post-handover assistance? • Are there any special requirements from either party?
2 Pre-contract enquiries
Once the basic terms have been agreed, the buyer’s solicitor will raise pre-contract enquiries. This is where the buyer seeks to learn as much as he can about the business and to identify any potential issues at an early stage. It is likely that the seller will be expected to confirm in the sale agreement that the information he gives in response to the replies is accurate, so it is important that the seller takes time to answer the replies fully and accurately.
4 Exchange of contracts
Exchange of contracts is the point at which the buyer and seller become legally obliged to proceed with the sale and purchase. Until then, either party could change their mind and walk away from the deal. Once contracts are exchanged, the deal has been agreed and becomes legally binding and neither side will be able to change the terms. However, at that point, the franchise still belongs to the seller and the seller will continue to own and operate it.
5 Completion
Completion is the legal transfer of the franchise. From then on, the buyer will own and be responsible for the business. In sales of nonfranchise businesses, it is normal for exchange and completion to happen at the same time. However, in a franchise resale, the franchisor may insist that contracts are exchanged. There will then be a gap whilst the buyer attends the franchisor’s initial training course. Completion of the sale of the business then takes place once the buyer has completed the initial training. When handled well, a resale is the ultimate win-win-win for all parties. The franchisor is able to inject new life into the network; the exiting franchisee realises a capital value; and the incoming franchisee hits the ground running with an existing customer base and sales from day one. However, a badly run process can result in delays in completion and unnecessary expense on all sides. It is therefore vital that expert advisors with relevant experience are engaged from the outset.
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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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FRANCHISE DIARIES
Location, location, location In her second column for Elite Franchise, Subway franchisee Rachel Shaw discusses the challenges of opening a new franchise outlet
T
he first thing I did when considering opening my own franchise was to decide on the location. There are many things to consider. I picked the location for my new store by looking in detail at the demographics of the area, including information on how many schools there were, the pedestrian footfall, passing traffic and availability of parking. I also considered the locations of businesses such as offices, estate agents, banks and hospitals and researched other competitors in the area, even checking how far away the nearest Subway store was. I was looking for an area that needed a quick-service restaurant and where there was evidence to support morning, lunchtime and evening trade. It can be quite challenging to find a location that ticks all of these boxes and once you have, you also have to evaluate the breakeven factor and the rent and rates in the area. It is also useful to review any local up-and-coming developments and whether or not these will impact your business in either a positive or negative way. Once you have decided on your chosen site, you then submit your preferred location to the brand, which in turns does its own analysis of the area. It looks at the viability of your location using its own formulas and also sends a field consultant out to visit the area and meet with you at your preferred location. The next thing you need to think about is recruitment: how many members of staff do you need? What skills should they have? Where will you find new staff? How will you work out who suits your needs best? I
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always advertise for jobs locally with a poster in the soon-to-open store, along with setting up an interview day at the local Jobcentre. I really enjoy meeting people so, for me, interviewing candidates is an exciting part of the recruitment process and one that I look forward to. It’s always nice to meet new members of your team and know that they are just the right person for the job. The time from picking the location, recruiting and training staff through to the actual opening day could be anywhere from three to six months, depending on legal requirements and the amount of building work or refurbishment needed for the store. The franchisor will usually support you with details of approved contractors. I have always used the same firm from this list for my stores – they are extremely reliable and turn around a build within four weeks, taking care of required certification and building controls. My newest store in West Wickham, Kent, has been received very well since it opened at the end of 2013. I believe this was down to the amount of work that we did prior to the
Interviewing candidates is an exciting part of the recruitment process and one that I look forward to opening within the community, such as taster days, getting involved with the local Christmas Fair and holding regular meetings with other businesses in the area. Having the support of your franchisor is very important, especially when the opening day gets close, and this is why I like the tried-and-tested concept of franchising. You know that you’re not on your own, and that there are plenty of people who can help you out and provide reassurance that you’re doing just fine. As a Subway franchisee I was fortunate to have regular meetings with a field consultant in the build-up to my store opening and had their support for the first few days when I began trading. I can’t tell you how important that was to me. Being a franchisee isn’t about working by yourself, it’s about working with an established and well-recognised brand, which is there to support you every step of the way. May|June 2014 elitefranchise 65
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8.TP-LINK 24 Port Gigabit L2 Managed PoE Switch
• Intel® Core™ i5-3340 processor with Intel® Turbo Boost technology • 4GB RAM / 500GB hard drive • DVD±RW / DVD-RAM • Intel® HD Graphics 2500 • Windows 7 Professional pre-installed / Windows 8.1 Pro media and license.
• 24 x Gigabit ports with 4 Combo SFP Slots • Supports 24 ports of 802.3at/af-compliant • L2/L3/L4 QoS and IGMP snooping optimize voice and video application • WEB/CLI managed modes, SNMP, RMON bring abundant management features. E A FRE CLAIMSHUFFLE IPOD H EVERY WIT HASE* PURC
Order: GQQ693544
£379
.99
Order: GQ195019
£219.16
Ex VAT
Ex VAT
4.Samsung Galaxy Tab 3 Tablet PC
9.Targus USB 3.0 SuperSpeed Universal Docking Station
• Dual-Core 1.6GHz CPU • 1GB RAM / 16GB memory card included • 10.1” TFT wide (1280x800) display • Supports MicroSD card (up to 64GB) • Android 4.2 OS.
• Single DVI-I video port • DVI-I to VGA adapter • 3 x USB 3.0 ports • Gigabit Ethernet port • Horizontal or vertical desktop position. Order: GQ207089
Order: GQ220897
£229.00
£75.00
Ex VAT
Ex VAT
5.Dell C2660DN A4 Colour Laser Printer
10. Kensington USB 3.0 Docking Station with DVI/HDMI/VGA
• Print speeds up to 27ppm mono and colour • Duplex printing • Network ready • 50k monthly duty cycle • Low total cost of ownership.
• Quick one-touch USB connection for hassle-free setup • High-speed data transfer of up to 5Gbps • Faster network & Internet access with Gigabit Ethernet connection • Compatible with USB 3.0 & 2.0 • Corporate Install feature.
Order: GQ220937
£229
.01
Ex VAT
*Terms and conditions apply. See product page for full details.
Order: GQ198414
£116.66
Ex VAT
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