Elite Franchise June 2017 by Elite Business Magazine

elitefranchisemagazine.co.uk

Crolla’s Gelateria

Franchising is breathing new life into the 122-year-old ice-cream company

JUNE 2017 £4.50

The trailblazers

Why pioneers take the risk of becoming companies’ first franchisees

Husse

How a lifelong animal lover brought the Swedish pet-food franchise to the UK

Picture perfect Helping Zimbabwean women paint murals and disabled adults hone their photography skills led Sarah Cressall to her true calling: nurturing the creativity of the nation’s kids with The Creation Station

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Take control of your future and build a profitable business and saleable asset. TaxAssist Accountants can help you grow your own accountancy practice, a real asset for your future whether you have a plan of 5 years, 10 years or longer.

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cover star

COLOURING OUTSIDE THE LINES 16

Rather than teaching children that thereâ&#x20AC;&#x2122;s only one way to do things, with The Creation Station Sarah Cressall is using art to activate kidsâ&#x20AC;&#x2122; imaginations 6 elitefranchise | JUNE 2017

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contents 06.17

REGULARS 9 Welcome & contributors 11 News & events 89 Franchise diaries

COLUMNS 13 Pip Wilkins 15 Sussanne Chambers 25 Frank Milner 27 Nigel Toplis 31 Tony Bowman

FEATURES

Bone appetit Husse is leading the healthy pet food revolution

34 Quite the scoop

Crolla's Gelateria is a new franchise with over 120 years' of history

40 The trailblazers

The pioneers who dared to become the first franchisees

54 A franchise's guide to fintech How can finance technology help franchisees?

60 The diversity debate

Are franchises reflecting all walks of life in their ads?

66 The best defence

Train your employees to help block hack attacks

72 Gotta have faith

After losing his job, a friend at church helped Henry Hamann become an InXpress franchisee

76 Act global

The legalities to consider when expanding internationally JUNE 2017 | elitefranchise

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welcome Volume 05 Issue 06 / 2017 EDITORIAL Josh Russell – Editor josh.russell@cemedia.co.uk Maria Barr – Web Editor maria.barr@cemedia.co.uk Eric Johansson - Feature Writer eric.johansson@cemedia.co.uk

Sticking to your guns

DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Jenny Allen – Designer jenny.allen@cemedia.co.uk Dan Lecount – Web Development Manager dan@cemedia.co.uk

ntrepreneurs come in all shapes and sizes but they are all united by their will to batter down a few doors to get what they want and their determination not to let the opinions of others steer them off course. This month’s cover star, Sarah Cressall, founder of The Creation Station, is the perfect embodiment of this. Having had her innate creativity stamped on while in school, the franchisor rediscovered it as an adult. She's defied her early critics and turned her artistic flair into a successful business that empowers children to colour outside the lines. There are countless other examples of this defiant spirit on these pages alone, from Alex Scotchbrook, Tutor Doctor’s first UK franchisee, overcoming her people-pleasing leanings to get the answers she needed to Peter Crolla helping his family ice-cream business see off competition from the supermarkets. When it comes to achieving their goals, the brightest franchising stars don't listen to the haters.

SALES Gemma Campion – Sales Manager gemma.campion@cemedia.co.uk Jemma Tonge – Senior Account Manager jemma.tonge@cemedia.co.uk MARKETING Taylor Blayney – Media Assistant taylor.blayney@cemedia.co.uk CIRCULATION Paul Kirby – Circulation & Data Manager paul.kirby@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk DIRECTOR Scott English – Director scott.english@cemedia.co.uk Circulation enquiries: CE Media Call: 0124 567 3700 Elite Franchise is published by CE Media, 1st Floor, Regency House, 16 Victoria Road, Chelmsford, CM1 1NZ Copyright 2017. All rights reserved. No part of Elite Franchise may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor. Elite Franchise will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the printing process, images can be subject to a variation of up to 15%, therefore CE Media Limited cannot be held responsible for such variation. cemedia.co.uk

elitefranchisemagazine.co.uk

■ Josh Russell - Editor

Contributors

Jane Maudsley

Frank Milner

Glen Murphy

Kate Legg

Fresh from her visits to franchisees, the Little Voices franchisor has been on the road meeting her most valued suppliers, which has inspired her column on nurturing supplier relationships in this issue

As president of Tutor Doctor, Milner has seen many a new franchisee being added to the family. This month, he considers the questions budding entrepreneurs should ask themselves before selecting a territory.

Britain’s fintech sector is booming and this is enabling franchises to streamline the way they manage their finances. Murphy, client relationship manager at Dennis & Turnbull, reveals how the new technology can help you.

With so many British franchises getting interest from all corners of the world, the Komerse CEO is highlighting the ins and outs of international trading laws when your franchise is going global.

JUNE 2017 | elitefranchise

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news Closing the age gap Britain is facing a huge skills shortage and the challenge of dealing with an ageing population. However, Business in the Community might have a solution. The charity, which promotes responsible business cultures in the UK, is spearheading a campaign that’s seen eight major businesses pledge to have over-50s constitute 12% of their workforce by 2022. Among them is home-care franchise Home Instead Senior Care.

Commenting on the news, Martin Jones, managing director at Home Instead Senior Care, said: “Age to us is seen as a real advantage. Often our older caregivers find common ground and mutual hobbies with clients as they can share memories and life experiences.” The benefits from introducing a 'silver quota' will surely help Home Instead Senior Care stand out from the competition and widen its talent pool.

BY Eric Johansson

Events The British Franchise Exhibition 16 - 17 June

EventCity, Phoenix Way, Manchester, M41 7TB

bfa Prospective Franchisor Seminar 21 June DLA Piper, 1 St Peter's Square, Manchester, M2 3DE

bfa Prospective Franchisee Seminar 22 June DLA Piper, 1 St Peter's Square, Manchester, M2 3DE

bfa Franchise Awards 2017 28 June

The ICC, Broad St, Birmingham, B1 2EA

bfa Annual Conference 2017 28 - 29 June The ICC, Broad St, Birmingham, B1 2EA

The Co-op rolls out first franchise From introducing biodegradable bags to launching its own Fairtrade brand, the Co-op has established itself as one of the UK’s most well-known supermarkets by constantly trying new concepts. And now the company, which was founded in 1844, is embarking on the next stage of its journey by launching its first franchised stores. The new model is part of a partnership between Co-op and MRH, the service-station operator that also owns Kuwait Petroleum GB, Texaco, BP and Esso. Together the companies will be piloting seven new franchised convenience stores. Each will be between 1,000 and 1,500 square feet in size, with the first having opened in May. Breaking with 170 years of tradition might just be what helps the Co-op accelerate its growth even more in the years to come.

Going the extra mile Childhood obesity is on the rise, with the government estimating that a third of British children are obese. Fortunately, Premier Education Group, the sports-coaching and education franchise, is doing its part to turn the tide by launching the company's new Golden Mile campaign. Backed by former Olympic athlete Dame Kelly Holmes, the initiative encourages students to increase their activity levels while at school. It will see 1,254 schools compete against each other over a four-week period to win prizes like visits from Olympic athletes, free sports days and health and wellbeing sessions. Here’s hoping schools and their students go the distance and reap the benefits of their new and healthier curriculums. June 2017 | elitefranchise

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EDUCATION WRAPPED IN ENTERTAINMENT For more than thirty years, Mad Science has been the worldâ&#x20AC;&#x2122;s premier company in providing fun, hands-on, science-based programs and activities geared towards children aged 3-12. Our STEM programs integrate science, technology, engineering and math; and are designed to keep kids ahead of the educational curve! AFTER-SCHOOL PROGRAMS IN-CLASS WORKSHOPS SPECIAL EVENTS PRESCHOOL PROGRAMS BIRTHDAY PARTIES SUMMER CAMPS

Join a Worldwide Network Mad Science operates in 158 locations across 28 countries worldwide and reaches over 6 million children each year. By far the largest market outside of North America, Mad Science opened its first UK based location in 2005. During 2016 over 31 thousand UK children took part in a Mad Science After School Club, and nearly half a million children saw a Mad Science School Assembly! We are seeking enthusiastic entrepreneurs with a strong business acumen to join our growing UK community. Would you like to be part of a solid and proven business model, with a team dedicated to support your success? Then Mad Science could be right for you, so get in touch today!

www.madscience.org admin@madscienceeast.co.uk 07980 984 381 MADS001

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Pip Wilkins chief executive bfa

Why entering or holding awards is great for business From boosting morale internally to giving yourself a glow that helps your standing among clients, the effort can really pay off

veryone loves to be a winner but claiming the top gong isn't the only things awards should be about. In fact, simply considering the criteria for entry is a great way to step back and take a look at your business as a whole. What are your strengths and weaknesses? What have you been doing really well and what could you improve? Many franchises are so busy with the day-to-day that they don’t always have the chance to take a step back and look at things from an outsider’s perspective. Awards are a great chance to do this. And you don't need to wait for external industry awards to roll round: more and more companies are adopting an

awards-style celebration within their own networks as well. For bigger firms, these can be grand events that fall in line with annual conferences or AGMs. Or they can be a more modest affair within a smaller company. Holding your own awards is also a great way to recognise the contribution of topperforming staff, whether it’s strong salespeople or someone who’s always there to help brighten the mood when things get tough. No matter the size or scale, awards within a business can be great for bringing teams together. As for external awards, being a winner or even a finalist can be a great source of positive news coverage for your

franchise. This has benefits on multiple fronts. It helps to be recognised by the industry when you come to recruit staff or franchisees and it can boost your standing in the eyes of your customers. Within the franchise industry, being shortlisted for an award raises your profile, boosts your credibility and can really help you differentiate your brand. At the recent bfa HSBC Franchisee and Franchisor of the Year awards, franchisees and franchisors from all walks of life came together and were able to find inspiration from people at different stages of their franchising journey. New franchisees saw what longstanding franchisees have achieved and emerging franchisors could take note of what makes the Franchisor of the Year truly stand out. When Andy Brattesani, UK head of franchising at HSBC, and I sat down to go through all of the entries for both the franchisor and franchisee categories, we were astounded by the stories of success, determination and passion from across the sector. The diversity in age, backgrounds and the reasons why people joined the industry proved that franchising really can offer something for everyone. JUNE 2017 | elitefranchise

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Sussanne Chambers founder and managing director HomeXperts

performs through potentially challenging times. I started my property franchise HomeXperts in 2009 in the depths of the biggest property recession in history and that didn't hurt me. So turn that frown upside-down: there are plenty of ways you can make the most of Brexit. Don’t use Brexit as an excuse for poor performance While Brexit may close some doors, that doesn’t mean that you can blame all of your business woes on Britain’s departure from the EU. It will also create new possibilities for companies, opening up new markets and income streams. Keep an open mind and continue looking for new opportunities, customers and market segments for your products and services.

Nixing the negativity: making the best of Brexit While it may be tempting to moan and drag your feet, there’s plenty you can do to make the most of Brexit

Sitting around moaning will not help your franchise grow

here's a lot going on politically within the UK right now. Ahead of the general election, politicians have been trying to out-campaign each other in a bid to become the party in the driving seat for the next four years. But while the fate of the UK is in their hands, one element that will not change is that Brexit is here to stay, irrespective of which party succeeded. Be it a hard or soft Brexit, the UK will be leaving the European Union. In light of this, it would be easy to get worried about the future of our businesses. But I'm a big believer in the power of positivity: sitting around moaning will not help your franchise grow. So don’t park your aspirations or shy away from making tough choices. Important decisions you make now could impact on how your company

Keep an eye on cashflow and credit flow If times get tough, it's not only cashflow that needs controlling but credit flow too. You can control credit flow by invoicing on time and chasing any outstanding money you're owed. When money's tight, it's imperative you have a handle on how much cash and credit you have on your books. Be prepared to streamline your business Prepare in advance for potential tough times by taking a hard look at your business and asking if anything can be streamlined. If there are ways you can tighten your belt, don’t wait: cut costs now because the cumulative effect of savings can be significant. Look after your mental health Many entrepreneurs say that the health of their business bears a direct relation to their own mental health. So it's a wise move to make time for yourself and sleep well. An infographic produced by HomeArena, the online bedroom furniture store, revealed that 54% of highly successful people sleep at least six hours a night, revealing the importance of a good night’s sleep for business people. If you’re going to adapt to the shifting landscape post-Brexit, ensuring you’re happy and well-rested will be critical. The most important element is not to let external forces affect how your business performs. Be brave, be bold and be positive. Because, irrespective of the election results, the UK will make Brexit work. june 2017 | elitefranchise

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Sarah Cressall

Colouring

outside the lines

BY josh russell photography by emilie sandy

Having been put off art thanks to a negative experience during education, a chance accident in Zimbabwe unlocked Sarah Cressall’s creativity and led her to found kids art class franchise The Creation Station

iven that Sarah Cressall has dedicated her life to unleashing children’s creativity with The Creation Station, few would be surprised to hear that she would often let her imagination run wild. Having been told by her mother that she could achieve anything she wanted, the young Cressall – nee Long – composed a comic featuring a superhero based around a well-known chocolate bar. “The lovely people at Cadbury sent me a huge box of chocolate and I discovered the power of setting a goal,” she says. And this wasn’t Cressall’s only brush with creativity: her expressive endeavours also included plying her sister’s boyfriend with green-tinted, poorly set fudge and producing papier-mache creations in the family’s shed. “I loved that tactile process of making something and evolving ideas,” she says. “Personally I feel that the more we can allow children to experience the journey of ideas, the more their own unique personalities will blossom.” Despite this, when Cressall entered a convent boarding school in Alnwick in Northumberland at age 14, it’s safe to say this latent artistic ability

wasn’t nurtured, as one of her O-level art projects demonstrated. “When we were told to do a sunset, I used every colour that I could think of and blended them together but the teacher failed me,” she says. “As much as I loved art, I was told that I was no good at it.” As a result, Cressall went down a more scientific route, concentrating on maths, chemistry and biology at A-level and choosing a degree that was more pragmatic than expressive. “My mum said ‘well people always have to eat,” she says. “So I found a degree in nutrition.” Studying at the University of Huddersfield, Cressall embarked on a four-year degree that involved completing multiple placements. And during one of these placements, her then boss and mentor John Wilkinson said she could eventually work her way up to become the regional manager. “I was like ‘I don’t know if this is really my passion’,” she says. Finding something she was more enthusiastic about wasn’t hard: not only had Cressall caught the travel bug – having spent time on a kibbutz in Israel and travelled around America by Greyhound Bus – but global events revealed her true calling.

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“It was in the 1980s: there was a famine in Ethiopia and Bob Geldof was doing Live Aid,” she says. “I thought ‘I’d love to make a difference there’.” On the hunt for ways she could help, Cressall found Operation Raleigh, now Raleigh International, the sustainable-development and volunteering organisation originally launched by Prince Charles. But qualifying for the programme was far from a walk in the park. “In order to get on, you had a selection weekend, which was really tough, both physically and mentally,” says Cressall. The bootcamp-style experience needed high levels of discipline and physical fitness, even requiring participants to get up for runs in the middle of the night. Fortunately, Cressall rose to the challenge, fighting on even when she took a tumble from a 30-foot rope walk. “There were probably too many people on the wire so I fell off,” she says. “What I didn’t realise at the time was I’d broken my wrist but I was so keen to get onto the programme that I kept going.” And this determination was rewarded: Cressall was selected to take part in the programme and chose to go to Zimbabwe. However, while earning her place on Operation Raleigh was tough,

As much as I’d loved art, I was told that I was no good at it

there would be even greater challenges to overcome when she was there. “While we were whitewater rafting down the Zambezi, we flipped and I tore the cartilage in my knee really badly,” she says. “I just had to hold on for dear life and hope we didn’t flip again because I wouldn’t have been able to swim.” Even once they had made it back to camp, Cressall’s injury meant she was less able to participate in the more active work. But rather than beating her, this finally gave her creativity, which had been stamped on during her school years, the opportunity to blossom. “We built this community health clinic and I did a mural on the wall: I burnt wood and made charcoal to draw it out and helped the local people to paint it,” she says. “While I was there with all of these different projects, a great guy came up to me and asked if I could help the local women develop rural creative workshops to help the community’s economy.” While Cressall was incredibly excited about the prospect of helping Zimbabwean women build their own creative businesses, she felt she first needed to build up more experience in managing commercial art. Moving back to the UK, she realised she could gain both a bit of cash and expertise framing pictures, so she quickly secured a job at a local framer. “We used to make and gesso these huge frames for the Tate gallery,” she says. “One time we made this massive picture frame and it was so big we couldn’t actually get it out of the building.” On top of this, Cressall began a diploma in arts management and started working as a designer-maker. “I just had this drive: I did a lot of papier-mache, clocks, glass, all sorts of stuff,” she says. “I immersed myself in it and started training other designer-makers.” By 1996, Cressall had met her future husband Duncan and the couple decided to move down to Devon, which led to a serendipitous change of career for Cressall. “I couldn’t get a picture-framing job but I ended up running workshops for people with head injuries,” she says. “I realised that the benefit was just to do something together so I started getting out some clay and some different types of media and letting the students experiment.” Before long this led to a job teaching art at a disabled young adult centre. And despite having no experience in developing photos, when a member of

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staff asked Cressall whether she could set up a dark to be there for their kids and nurture their talent,” she room for the centre she jumped at the chance, finding says. “And many people don’t like doing arts and crafts someone from the Yellow Pages to teach her the basics in their houses, so it wasn’t a hard sell.” But it wasn’t and buying second-hand kit. “Because of my pictureonly The Creation Station’s customer base that grew framing skills, I then created a gallery and we had an organically: as Cressall was under less pressure to draw art exhibition showing off the students’ work,” she a salary than the average entrepreneur, she was able says. “I saw myself as enabling them to experiment to put the programme through its paces and ensure and learn through doing, rather than teaching them.” classes were up to scratch before worrying about how During this time, Cressall had another the business was monetised. “I was very significant life change: she had her first fortunate to be supported by my husband child. “Becoming a parent, you see the Duncan, not just emotionally but also I saw myself as world very differently,” she says. “You financially, so I never had to push too hard enabling them almost go through a little doorway into a in terms of the bottom line,” she says. “That whole world of stuff on the other side.” meant I was able to develop the programmes to experiment Two more children followed and Cressall and test them at a pace that suited me.” and learn wanted to start encouraging her kids’ And without a doubt this has yielded creative instincts. Unfortunately she remarkable results, enabling Cressall to through doing, often found that by the time she had build a roster of classes that really sets rather than me The Creation Station apart from the done all the prep for art sessions, her children had already finished playing and competition. “From a values point of view, teaching them were wandering off round the house with we want to inspire imagination and the paint-covered hands. “And I noticed that emerging potential of the children,” she a lot of the organised classes that they went to were says. “Parents and their children have an incredibly trying to teach them stuff, whereas I wanted them special relationship and we’re privileged to give to blossom and the wonder within each of them to them the opportunity to share a creative experience emerge,” she says. “That’s really where the first seeds together.” Whether it’s sessions creating keepsakes for for The Creation Station came from.” new parents, activities aimed at boosting self-esteem Having realised that there was an opportunity to or creative kids’ birthday parties, the company offers offer more hands-on reative classes, it didn’t take long no end of activities aimed at encouraging all kids, from for Cressall to find potential customers for the new tots to tweens, to express themselves. And it’s not company. “There are a lot of mums like me who want just for whippersnappers: The Creation Station has recently launched a range of activities that cater to adults. “It’s not highbrow – we’re not teaching people how to do watercolours,” she says. “It’s about having a great afternoon or night out, meeting new friends and doing some fun crafts.” Once this programme was in place, it was a cinch for Cressall to prepare The Creation Station for its first franchisee, in part because she’d been planning for this eventuality since launching her very first class. “From day one, I knew it was about systems,” she says. “So I wrote down and recorded all of the processes and have continually improved and tweaked them.” This meant that in 2007 Cressall was ready to take on her first franchisee, signing Louise Radford up to operate The Creation Station’s first arm’s-length franchise. With the feedback this provided – and with some help in the form of the bfa’s specialist expertise – Cressall refined The Creation Station’s model, something that saw new franchisees start to pour in thick and fast. “We get a lot of enquiries now from people who are either looking for a class or an The Creation Station arts and crafts franchise,” she says. “But even though some days we’ve had over 90 JUNE 2017 | elitefranchise

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Sarah Cressall

enquiries, we only award it to 2% of people that inquire.” With such a high number of candidates applying for new territories, The Creation Station has developed some pretty strict criteria for who makes the cut. “Firstly, they need to be someone who aligns with our brand values,” says Cressall. “That’s 100% non-negotiable.” While a prospective franchisee doesn’t necessarily need to be a burgeoning Braque or a Matisse in the making, they should be attracted to arts and crafts and be able to build relationships with people. However, perhaps the factor most vital in a Creation Station franchisee is having a degree of grit and an ability to learn from one’s mistakes. “It’s that positive attitude that we look for,” she says. “Even if the situation hasn’t worked out quite to plan, there’s always something you can learn.” And this policy has certainly earned Cressall her fair share of gongs and plaudits: she won Best Woman Franchisor 2012 at the Encouraging Women into Franchising Awards, Entrepreneur of the Year 2013 at the Venus Awards and came in the top three of the Richard Branson Positive Impact On Society Awards in 2016 to name but a few. “I remember the first award I was fortunate enough to win, I couldn’t believe it because I was up against amazing people,” she says. “During those early years, it was a lovely acknowledgement.” Part of the reason Cressall feels awards such as these are so beneficial is that they show entrepreneurs they are moving in the right direction, even when it may not feel like it. “On every journey, there are always really tough bits: it might look all plain sailing from the outside but every journey has its hurdles,” she says. “Fortunately, if you can push through, that’s when you really start to see the light. Awards are a lovely acknowledgement of the fact that you’re on the right track.” No one could argue that The Creation Station isn’t heading in the right direction. In the last 18 months, Cressall feels that the franchise has reached an inflection point in its growth, allowing her to start rapidly

scaling operations. “We doubled the size of our warehouse, we changed offices, we’ve got a drop-ship warehouse in Denmark, we’ve got people on the ground across the country, we’ve got regional franchise support,” she says. But Cressall emphasises that the most important thing for her is ensuring The Creation Station continues to help its franchisees nurture the creative instincts of the country’s kids. “We’ve provided over 325,000 creative experiences now and there’s no way we could have done that without our franchisees,” she says. “They are the magical ingredient that really brings The Creation Station to life.” And having honed the recipe for her franchise, Cressall still has one more trick up her sleeve: The Creation Station’s Impact 100, which will create positive outcomes through creativity. “We’re developing a series of creative workshops for different sections of the community,” she says. “It will be five creative workshops over a five-week period around supporting new mums’ mental health, people suffering with dementia, families in distress, baby bonding and special needs.” With the help of universities, specialists and corporate sponsorship, the Impact 100 is set to roll out this September. And rather than having a setand-forget approach, The Creation Station will be incrementally improving the programmes based on the feedback of the communities themselves. “As we do these things, we’ll be listening, learning and tweaking it to make the biggest positive impact that we can,” Cressall says. “That's what we're all about.”

Our franchisees are the magical ingredient that really brings The Creation Station to life

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1 Franchise 4 Solutions Dry Carpet Cleaning

Upholstery Cleaning

Hard Floor Cleaning

Sandless Wooden Floor Restoration

Ceramic • Stone • Vinyl

Leather • Suede • Fabric

The UK’s No.1 Dry Carpet, Upholstery & Hard Floor Cleaners A Zerodrytime franchise gives hard working franchisees the opportunity to earn in excess of £50,000 per year If you’re looking for an exciting career change that will bring you financial security without the constants of working for someone else, a zerodrytime franchise could be the right choice for you. Don’t be confused, running a dry carpet & upholstery cleaning business may not be what you think new technology and products have changed the way we work forever. The zerodrytime system will enable you to give people what they want. Dry carpets and upholstery ready for immediate use. You will learn to run your own successful business with great long term repeat customers. The earning potential is unlimited with a zerodrytime franchise. What you make from this business is up to you. Are you going to stay as the man in the van, or have multiple vans? Our guarantee to you is, whatever your choice, we will help and assist all the way on your journey to success and financial freedom. So you have read about our franchise, why not come and visit us to find out more, or contact any of franchisees to find out how it has changed their lives.

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ZERO001

Call: 0191 270 9202 30/05/2017 09:30

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ADVERTISING FEATURE

Business Doctors provides crossborder help for Europe’s SMEs U K-grown SME consultancy and coaching franchise Business Doctors has made its first move into mainland Europe with the appointment of a master franchisor for Belgium and Luxembourg. On the eve of the launch of his Brussels office, we asked former bluechip finance director Aslam Bakkali a few questions

Why did you buy a master franchise? "I was initially thinking about setting up my own small business consultancy from scratch, until I discovered that Business Doctors had already been doing it since 2004. "Joining the network gives me access to a large team of high calibre business experts and years of experience and proven methodologies, making my venture faster to develop and less risky. "I wanted to buy a master franchise because it’s a unique opportunity to make a major difference and build something valuable: something I could be proud of."

Why did you choose the industry and franchise you did? "I am passionate about SMEs and eager to tap into my 30 years’ experience in business performance management, finance, sales and marketing strategy. Consultancy was a no brainer and when I met franchisors Matt Levington and Rod Davies, it quickly became clear that we shared the same values of collaboration, honesty and integrity and that Business Doctors was the best fit possible." What training and support did you receive initially and ongoing? "I received eight days’ intensive training and lots of ring binders full of precious information – the same training that franchisees receive. These have set me up to understand and practice Business Doctors’ operating model and low key selling approach. Following this, I will have six further days of hands-on support in Belgium, to help consolidate my knowledge and lead me to mastery. I also know I can count on Business Doctors’ head-office to offer continuous training, support, coaching and mentoring whenever I need it."

How does your franchise differ from others in your industry? "Business Doctors is an experienced and international franchise, with over 10,000 SMEs already supported in the UK and as far afield as South Africa and India. It is unique in the way it engages with clients. Business Doctors are trained to listen actively and

really understand client companies’ challenges. They are jargon-free, hands-on, pragmatic and humble-far away from traditional “know-it-all” consultants who focus on concepts and theories and not on execution." What are your plans for the future? "I will be developing the BeLux network, looking to recruit around eight franchisees within five years. In parallel, there are exciting plans to launch in France and the Netherlands. But that’s another story. Let’s focus on BeLux first."

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Some people start their own business to

MAKE MONEY Others do it to

MAKE A DIFFERENCE Wouldn’t it be great if you could do both?

Mathnasium maths-only children’s learning centres are designed to help children catch-up, keep-up and get ahead in maths, the results are amazing and the demand is HUGE. This innovative franchise enables you to run your own profitable and fun Mathnasium centre in your local High Street. • • • •

No maths or teaching experience necessary Simple, effective and proven system Over 800 franchised centres worldwide Low investment, great returns

mathnasium.co.uk It could be the most rewarding move you ever make! Mathnasium UK - 0161 791 0686

www.mathnasium.co.uk MATH001

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03/05/2017 15:32

Frank Milner CEO Tutor Doctor

Getting territorial: why franchisees should do their research before agreeing to a location The best location decisions are made when franchisees combine the information they’re given with their own findings and local knowledge

electing your territory is one of the biggest decisions a franchisee will make. And when you’re joining a fast-growing international business it's important that you feel confident that your prospective franchisor has done their research and that their expansion plans are sustainable. But as well as making sure the franchisor has done their homework, franchisees should always do some swotting up themselves. Newly established franchisors should have run the business in a pilot location to refine the systems they're expecting franchisees to follow. Part of this piloting process involves establishing the minimum requirements for a fertile territory. As a franchisee, it’s important that your franchisor can tell you things like how many prospective customers are needed to support the business, who the customers are and how frequently they’ll buy. This will allow you to understand some of the basic demographics needed for a viable territory. Not every franchisor offers a protected geographic territory but, in my experience, most franchisees expect a piece of the country that they can call their own. This means that the franchisor needs to have a firm understanding of how many viable territories there are in a country when they're drawing up expansion plans. You should feel confident that your franchisor will be able to support you and that they – or their customer base – won’t be overstretched. Another piece of essential due diligence for a prospective franchisee to do is making sure you've got accurate and up-to-date local market

research informing your business plan. The franchisor may have outlined the protected territory but the demographics that were used to define it were likely high-level and quite general. When you do a bit of digging yourself, you may find that the reality differs from the plan. Things like the population makeup can also change over time and the snapshot taken when the territory was first mapped out can differ from the current picture. Ultimately, there’s no substitute for someone with local knowledge researching the competitors, market opportunity and logistics of the area they’ll be running. I’ve always said to prospective franchisees that I won’t change a territory just because they ask but I will consider doing so if they can prove why it should change. At the end of the day, if the franchisor has no territory map or expansion plan and the prospective franchisees don’t do their due diligence, things will not end well. So by combining your own research with the knowledge and experience your franchisor has, you’ll give your new location every chance of success. JUNE 2017 | elitefranchise

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02/06/2017 16:06

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28/02/2017 10:14

Nigel Toplis managing director The Bardon Group

How can you establish when you’ll break even? Working out when you’re likely to recoup your initial investment in a franchise isn’t straightforward but there are ways to calculate a ballpark figure

the business in the manner you're shown and are ambitious, driven to succeed and prepared to put the hard work in then you could expect to break even within a certain period. However, when you're considering which franchise to invest in, the point you’ll break even is an important consideration. I would advise that you work with your accountant and do your own here's no algorithm that can accurately calculate financial modelling. Take the financial parameters your return on investment – neither in a franchise as detailed by the franchisor as a good starting nor an independent business. Different franchisees point but then add in your own assumptions will have different break-even points. Similarly, a franchise about the market, your potential penetration of that calls for significant investment up front will take longer that market, the prices you think you can charge, to pay back than a franchise that needs little. A franchise that the percentage of repeat purchases you would requires premises, high levels of stock or a significant outlay expect and how quickly you feel you can add new for machinery will naturally take longer to pay back than a customers to your pool. franchise where you’re working from home. The franchisor will have an outline of their Even within a franchise, it's difficult to be definite about expectations in terms of factors like turnover, when you might break even. Two franchisees starting at the gross margin, costs and net margins. Use these as same time in the same business can have markedly different a guide but run through three different scenarios returns. Much will depend on the franchisees’ own level of for your own peace of mind. Firstly, you should activity, their drive, ambition, individual skills, competence assess the expected performance – which will and willingness to follow the business system. What a fairly closely match the franchisor’s model. Then franchisor can say is that if you follow the system, market do a calculation that’s on the conservative side with lower turnover and higher costs as a what-if scenario. Finally, do a more When you are positive calculation with costs and betterconsidering which lower than-expected turnover and franchise to invest in, margins – just to see what the point you’ll break the figures would look like if you're as good as you think even is an important you might be. Once you have consideration your three options, speak to some other franchisees and get their thoughts on your expectations before explaining to your franchisor how you’ve arrived at the three options. Between your efforts, the input from other franchisees and a discussion with the franchisor, you'll arrive at a fairly accurate financial picture of the business. After taking this back to your accountant and getting their professional input, you should then have a clear sense of when you’ll break even.

JUNE 2017 | elitefranchise

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02/06/2017 16:10

ADVERTISING FEATURE

Make a move As Britain’s house asking prices hit a record average high, is it time for you to join the property industry?

fter recovering from the effects of the Brexit vote, property asking prices have hit an all-time high of £313,655. Rightmove, the property business, has found that April saw asking prices increase by 1.1%, monthto-month. This equates to a £3,547 rise from March, surpassing the June 2016 peak of £310,471. So why have prices risen? Rightmove continues to say that more houses are being sold now than at almost any point after the financial crisis and that more first-time buyers are finally taking the plunge and getting on the property market. In his overview of the April 2017 House Price Index, Rightmove director Miles Shipside mentioned a “strong spring market with the number of sales agreed achieved at this time of year being the highest since 2007”. And franchising is an effective way for people to join this lucrative industry. HomeXperts, the estate and lettings franchise, offers an avenue for you to explore the property industry under a national, award-winning brand. From £9,995 + VAT, you can kickstart your entrepreneurial career by helping people wade through a growing housing market and find their dream home. HomeXperts was developed by founder and managing director, Sussanne Chambers in 2010. As a portfolio landlord, Chambers had experienced the good, the bad and the ugly of the estate agency industry. Unfortunately, the bad and the ugly were mainly experienced in the UK and the good was often to be found overseas. The property franchise now has over 60 franchisees nationwide who deliver exceptional customer service to their clients. 28 elitefranchise | JUNE 2017

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01/06/2017 13:39

ADVERTISING FEATURE

To turn your passion for property into a functional business, HomeXperts offers dedicated back-office support to all of their team When setting out in this established industry, you’ll need training to a professional standard. Once you join HomeXperts, you’ll be enrolled into its intensive, twoweek training academy that ensures you’re trained to Propertymark – formerly NFoPP – standards. What’s more, operations director Mike Gowland – who has over 30 years of estate agency experience – has extended the academy by another two days to provide extended information on the industry franchisees are about to enter. Once you’ve undergone your training and launched your business, HomeXperts continually helps franchisees develop and boost their business skills. This could come in the form of regular webinars, which give you the opportunity to learn without having to leave the house. HomeXperts has also partnered with two property portals, Rightmove and Zoopla, to deliver informative training days at their headquarters. Add regular franchise training meetings and specialist development days, such as SEO enhancement classes, and you have a thorough coaching programme conducted by experienced professionals. HomeXperts’ exceptional training package compliments an extensive support system that franchisees will be able to take advantage of. First, you’ll receive your franchise package, which includes access to major UK property portals, property management software, your own branch page and a local website. You’ll also get a full marketing package, which includes an iPad, a camera, property boards, vehicle branding, stationary and more. You’ll gain access to

Home Xperts Advertorial.indd 2

the 24/7, cloud-based hub that holds over 1,000 training documents. To turn your passion for property into a functional business, HomeXperts offers dedicated back-office support to all of their team. This includes processing your letting work with the HomeXperts accounting team and an in-house designer to craft your marketing materials. With house prices forever on the rise, it might just be time you started researching the property market in your area and some of the opportunities available. You could even find yourself becoming the trusted agent in your area through franchising.

01/06/2017 13:39

“ I felt that it was a business model I could excel in.” Jyoti Kohli, Franchise Owner Bluebird Care Haringey

Be part of the most experienced care franchise in the UK bluebirdcarefranchise.co.uk 07912 771 149 carole@bluebirdcare.co.uk Bluebird Care Franchises Ltd, Charles Street, Petersﬁeld, Hampshire GU32 3EH

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Helping companies improve their bottom lines ERA is a B2B management consultancy franchise specialising in reducing organisational overheads and delivering competitive advantage. Expense Reduction Analysts were proud to be recognised with the Bronze Award as a Top 3 UK Franchise in 2016 and prouder still to be shortlisted again in 2017. E RAF RANC HIS E . NE T

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30/05/2017 10:14

Tony Bowman managing director etyres

Smoothing the path from employment to self-employment

A great franchisor will help you avoid the potholes that come with setting up on your own

he process of starting a franchised business usually begins with a desire to become self-employed. At this point there's plenty to be excited about. Research into finding the right franchise follows, which also encourages plenty of optimism and hope for the future. This enthusiasm continues past the point at which the new franchisee resigns from their old job and during the initial training, because there's lots of contact and support from the franchisor. So far, so good. But from here

things can head in two very different directions as the new franchisee realises that they now run their business themselves. For this reason, it's vital the franchisee doesn't succumb to doubt and disillusionment so that they maintain their initial enthusiasm, knowing that they've made the right decision. Fortunately, an experienced franchisor will be able to successfully guide the franchisee through this critical transition from being employed to self-employed. So how do they do this? Firstly, by having a dedicated member of the head-office team whose role it is to assist in all day-to-day operational matters. It's even better if this person has hands-on experience of running a business themselves, making them aware of the potential pitfalls and problems franchisees might face.

Additionally, a key motivational tactic good franchisors employ is keeping franchisees in the loop. We keep our etyres franchisees constantly up-to-date about the goings on at head office and across the branches with weekly roundup emails, quarterly network newsletters and biannual regional meetings. From a financial point of view, becoming a franchisee means you're largely responsible for your own fiscal fortunes. It's important you understand and accept this from the get-go. Unlike being in employment, the buck stops with you and you have to face up to the fact that if you don’t make money, you can’t afford to pay yourself. Outgoings, including rent, insurance, staff salaries and benefits, are all on your shoulders. But one of the main benefits of franchising is that you can ease the burden by seeking guidance and support from your franchisor and its head-office team, who are all there to help you stand on your own two feet. In light of this, be prepared for some very frank conversations with your franchisor about your financial situation, expectations and personal circumstances. For example, if you need £2,000 to meet your monthly outgoings – such as your mortgage, bills and loan repayments – you need to know whether this is a realistic target when you launch your franchise or if you’ll need to subsidise this sum with the working capital you've earmarked for your outgoings. Moving from employment to selfemployment is a life-changing decision. But if you choose a franchise as your vehicle, you'll be in for a much smoother ride. JUNE 2017 | elitefranchise

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02/06/2017 16:09

ADVERTISING FEATURE

An OSCAR franchise provides the security of a strong brand and protected image that gives franchisees the benefit of running your own business to suit your time and circumstances within your exclusive territory

ccording to the Pet Food Manufacturers’ Association, there are over 22 million pets in the UK. That equates to one in two households owning a pet. To cater for customer demand, OSCAR is inviting you to join its network and benefit from its vast range of experience in the pet food and accessories industry. At OSCAR we never take anything for granted. The pet food industry is ever changing and it’s our policy to ensure that our products and services continue to meet the standards required to satisfy the pet customers’ needs – concentrating on our extensive range of pet food, treats and accessories. OSCAR’s foods don’t compromise on quality, using only the finest human-

Your choice, your business, your franchise grade wholesome ingredients which are traceable and, for the most part, locally sourced. The foods are highly nutritious and tasty, which helps our fully trained nutritional advisors to ensure that every pet gains a wealth of nutritional benefits.

My business is everything I want it to be: flexible, with less stress; it is a pleasure to go to work. Results are very forthcoming Richard Hebden, Oscar Pet Foods - Flintshire

We have a strong network of franchisees representing the OSCAR complete pet care service around the UK and our motto for running a family business is achieving excellent results. By attracting new franchisees from a variety of backgrounds and skill sets, OSCAR has recognised the growing need to introduce a franchise package that is structured to suit individual business requirements. The OSCAR franchise package provides the fundamental necessities required to launch an OSCAR franchise. It then allows the franchisee to choose from a cross section of additional business development services, thus creating a package tailored to suit the individual and their personal skills. With continued advancement towards success, including training and support, OSCAR is adopting a more user friendly approach throughout. By using up-to-date technology, OSCAR is able to provide innovative training that allows its franchisees home access to an online resource centre, enabling more accessible learning. No previous experience is required to run an OSCAR franchise because there’s a team on hand to advise and guide franchisees throughout the years. Experts in nutrition, behaviour, marketing, accounting and general business needs are readily available to provide valuable information for franchisees and their customers.

32 elitefranchise | JUNE 2017

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02/06/2017 16:36

Due to increased demand for arts & crafts classes, parties and events, the award-winning Creation Station are looking for proactive and friendly people to run their own successful franchise.

Rated 5-Star by customers on Trustpilot and in an independent survey, franchise owners rated the franchise as 5-Star.

Would you love to be your own boss, doing something you love with the backing of an established, tried and trusted brand? Request your free information pack today.

Over 120 people already enjoy running their own rewarding franchise.To check if your area is available and for more info call Maggie today on 01395 29700.

â&#x20AC;&#x153;I wanted something more flexible, rewarding and fulfilling. I was so pleased my area was still available as The Creation Station really ticks all the boxes for me and my family.â&#x20AC;?

Fariyal Shariff Inspiring imaginations in North Watford, Hertfordshire

thecreationstation.co.uk/run-your-own-franchise Creation Station FP.indd 1

As seen on.

01395 239700

THEC011 01/06/2017 18:05

CROLLA’S GELATERIA

Quite the scoop BY ERIC JOHANSSON

It’s not every day you come across a new franchise that has over 120 years of history to back it up. However, Crolla’s Gelateria isn’t like any other franchise

Most entrepreneurs launching a new business can only dream about their enterprise still going strong after a century. But then again, having launched when Serafino Crolla opened an ice-cream shop in Glasgow in 1895, Crolla’s Gelateria isn’t like other businesses. From starting a gelato factory in the interwar period to repurposing ambulances as ice-cream vans after the second world war, the entrepreneurial flair of Crolla’s children and grandchildren has fuelled the enterprise’s evolution throughout the 20th century. And now the founder’s great-grandson Peter Crolla is taking the next step with the franchise. Like many other success stories, this latest evolution was born out of the business leader having a keen sense of which way the wind was blowing. “We noticed that more gelaterias and parlours were opening,” says Crolla. The sector had been in flux since the 1990s when more people started purchasing their icy treats at supermarket rather than at icecream vans, pushing the mobile vendors out of business. Responding to shifting demand, the family company sold its fleet of vans and repurposed its factory to supply places like restaurants and hotels, as well as other

ice-cream van owners with frosty delights. But with the rise of ice-cream parlours, Crolla saw an opportunity to ensure the company’s success into the 21st century by opening a chain of gelaterias. “I knew that it would become a stepping stone to get even more business,” says Crolla. “And I quickly realised that franchising was the best model to open more stores.” But while he always intended to franchise the business, Crolla first wanted to ensure that he had a successful recipe for franchisees to replicate. So he opened a pilot in March 2013. “The first shop allows you to learn from your mistakes,” says Crolla. Fortunately, this inaugural gelateria on Byres Road in Glasgow quickly proved a success, going on to break its own record every year since its launch. Additionally, it helped the franchisor understand

While franchisees don’t need a lot of experience, the main thing is that they are passionate about the business

that providing great service isn’t the only factor that matters to consumers. Just like in real estate, the franchise’s success was dependent on location, location, location. “In a restaurant, people may spend £30 to £40 per head,” says Crolla. “For us that number is more like £5. That means that more people have to spend money and we have to be really careful about our site selection.” Nevertheless, finding a prime location for the inaugural gelateria wasn’t enough to ensure it got the footfall required to turn a profit. “It’s not like in the good old days when you just had to open the doors to get people inside,” says Crolla. Realising that fact, he embarked on a marketing campaign that saw the company serve up scoops of ice cream at events and hand out flyers. Using socialmedia sites like Instagram, Facebook and Twitter JUNE 2017 | ELITEFRANCHISE

CROLLA’s GELATERIA

It’s not like in the good old days when you just had to open the doors to get people inside was also instrumental in attracting customers. “You’ve got to keep moving with the times, so obviously social media became very important,” says Crolla. These efforts certainly proved effective: the Scottish Italian Awards named Crolla’s Gelateria Scotland’s Best Ice Cream Parlour in 2014. Having established the concept, Crolla felt ready to take the next step and franchise Crolla’s Gelateria. “But I needed expertise to help me through the journey to make the franchise easy to run for franchisees,” he says. This help was provided by David Moffat, operations manager of Iguana Eyes, the business consultancy, who was hired as Crolla’s Gelateria’s businessdevelopment manager. Together they ensured each procedure was streamlined and systemised, enabling future franchisees to replicate the

success of the pilot. And after eight months the model was finalised. Given that the venture is part of his family’s legacy, it’s hardly surprising that Crolla is quite particular about the quality of the franchisees who join the business. “We can’t just let anybody inside the door,” he says. In order to ensure the ice-cream franchise is attracting the creme de la creme, the franchisor enlisted Platinum Wave, the franchise-consultancy firm, to help with franchisee recruitment. In terms of what qualities he looks for, one thing stands out on Crolla’s list. “While franchisees don’t need a lot of experience, the main thing is that they’re passionate about the business,” he says. “They need that enthusiasm in order to do well. The rest we can train.” Carol Cordiner certainly had this passion in spades: not only did her

parents operate an ice-cream van for three decades but she was also so eager to become a Crolla’s Gelateria franchisee that she signed up before the model was even finished. “She has wanted to run an ice-cream parlour all her life but lacked the confidence to go it alone,” says Crolla. “But she believed in us.” That passion saw Cordiner open her own franchise in Aberdeen in August 2016. And just like the pilot shop, signing up the first franchisee would prove to be an education. “We learned the timescales needed to train someone up to a level that we were comfortable with,” says Crolla. “Now we’re much more confident that it will work in other areas in the UK too.” That confidence certainly shows as the company is gearing up to open 13 new franchises by the end of the year. “So it’s going quite fast,” says Crolla. Some of the entrepreneurs joining the franchise are already building their shops in places like Wales, Leeds and London, while others are in the final stages of raising funds. However, they aren’t the only ones: the franchise has had over 110 enquires from prospective franchisees, although some of them are more hesitant than others. “Many of them want to hear more success stories before they’re ready to invest, which is fair enough,” says Crolla. “So if we can get these stores up and running then many more people will be able to come on board.” And interest isn’t limited to these shores: prospective franchisees have reached out from as far away as the Middle East and the US, enquiring about opportunities to become the company’s master franchisees. While not ruling out the possibility for future international expansion, the franchisor has told the candidates to bide their time. “We’ve told them to let us get these 13 stores up and running, see how they perform and that we’ll be in touch by the new year,” says Crolla. “We want to walk before we run.” And given that the family company’s century-long history, it’s safe to say that the ice-cream-slinging franchisor knows a thing or two about taking its time and keeping its cool.

36 elitefranchise | JUNE 2017

One to watch.indd 3

02/06/2017 16:20

FANCY TRADE PRICE LUXURY HOLIDAYS? WHY NOT RUN YOUR OWN TRAVEL BUSINESS?

To find our more call us today on 0121 200 5561 www.familyholidaysfranchise.com opportunities@familyholidaysfranchise.co.uk

THEF005

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30/05/2017 09:52

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02/06/2017 09:16

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FRAN008 02/06/2017 09:17

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02/06/2017 16:17

First franchisees

The trailblazers Is there any advantage to being the first franchisee and paving the way for the rest of the network? BY MARIA BARR

Whether it’s introducing a global franchise to the UK or partnering with an entrepreneur to franchise an existing British business, it takes a brave soul to be a company's first franchisee. And the country has seen plenty of those this year: international franchises like The Massage Company, US burger specialists The Counter and iconic Canadian cafe brand Tim Hortons have all recently appointed their first UK franchisees. But since the sector's main draw is often said to be the fact that it provides a tried and tested formula, what’s the appeal of agreeing to be the very first franchisee in a new, untested market? Most people who are the first to come on board tend to have an entrepreneurial streak in them, which explains why they wouldn't rather wait for someone else to have a go. This means they need to be comfortable with a certain level of risk and tend to enjoy growing something that’s still in its very early stages. For Peter Gale, teaming up with his wife Susan to become artificial-lawn company Great Grass’s first ever franchisee was a risk worth taking. Despite a setback earlier on in his franchising journey, like many

entrepreneurs he wasn't deterred and instead embraced the chance to pilot a fresh concept. “I’d actually been burned by a previous franchising experience and had very nearly sworn off the sector entirely but when the right opportunity came about, I got excited about having the chance to start something new,” he says. And Michael Ziff, who became the first UK master franchisee of USbased business brokerage company Transworld Business Advisors in February 2016, puts it even more strongly. “Some call us pioneers, others call us lunatics,” he says. “But I knew I didn’t just want to be a franchisee with the comfort of being a follower: I wanted to be a master franchisee.” That’s not to say pioneering franchisees have a tendency to rush into things: if anything they tend to do even more due diligence. Gale admits he took his time to get to know the franchise and study its competitors to judge if there really was a franchise opportunity. “You won't lose out if you wait a few months," he says. And by the time Ziff finally signed the paperwork, he’d spent a full year studying every aspect of the deal, especially when it came the legal fine print. “You should never rush the due diligence process or

Some call us pioneers, others call us lunatics Michael Ziff, Transworld Business Advisors

scrimp on getting expert advice from people like solicitors,” he says. “As with any business there will be risks, so you have to take a long hard look at the strengths, weaknesses, opportunities and threats before making a decision.” And while it might seem less risky to be the first franchisee who slots into an existing international network than being the guinea pig for a business that wants to try the franchise model, the same level of scrutiny should be applied. Just because a company’s franchisees have a strong track record in overseas territories, there’s no guarantee that success will translate in the UK. “The fact that Transworld Business Advisors had a 35-year heritage in the US was a point in its favour,” says Ziff. “But I also made sure there was a UK market for it too and that it was a model that would be relatively recession-proof here.” He also advises would-be franchisees JUNE 2017 | elitefranchise

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First franchisees

to make sure they get a British version of the franchise agreement, even if it means pushing the franchisor to create one. Alex Scotchbrook, who became the first UK franchisee for Tutor Doctor, the home-tutoring franchise, in 2009, similarly found herself being a bit more assertive than her usual self when it came to doing her own independent research and grilling the franchisor for more details. “I wasn't afraid of banging down doors to make sure I was getting the information I needed to be able to trust the franchise,” she says. “It was my entire life savings on the line, after all.” Having just been made redundant, Scotchbrook understandably wanted to know she was making the right move. So when she had a few questions about the operations manual she’d been given, she didn’t stop until she'd spoken to the right people in the company’s operations team and had her questions answered to her satisfaction. “People used to call me a people-pleaser but they don’t anymore,” she says. For anyone considering becoming a company's first franchisee, not being afraid to push the franchisor for more detail – or a better deal – is crucial. There are no other franchisees to speak to and the first few who sign up will likely have to put in a bit more effort, so it’s important that the agreement reflects this. One of the more challenging aspects of being a pioneering franchisee is that, once on board, they don't have the luxury of being handed processes and guidelines

I’m not a complete innovator but I do see myself as an early adopter Alex Scotchbrook, Tutor Doctor

that have been fine-tuned over decades. “You can’t go into it thinking you've bought a box full of money and you just need to turn the handle to make it work,” says Scotchbrook. This can be daunting for some but, on the plus side, you do get to co-create these systems with the franchisor and play a part in informing the franchise's strategy. And this was a big part of the appeal for Scotchbrook. “I don’t mind trying different things and figuring out what works in the market: in fact, I find it more exciting,” she says. “I’m not a complete innovator but I do see myself as an early adopter.” However, while things are in the development stage, pioneering franchisees can be prone to feeling the pressure to perform. “It felt like everyone in the head office was watching me: they knew that if I flunked nobody else would want to buy another franchise in the UK,” Scotchbrook recalls. “I was the only person who could validate the concept in this market.” That being said, the onus isn't on the first franchisee alone: getting things off the ground should be a joint effort between them and their franchisor. “You need to have the right chemistry with the franchisor and you want someone who’s not just going to give you direction but someone who will listen too,” says Scotchbrook. “There’s always been a sense that we were in it together.” Lacking a clear, signposted path isn’t for everyone, of course, and anyone considering becoming a brand’s first franchisee should consider what their expectations are. But the draws are undeniable too. “Although I’m just at the start of my franchising journey, I'm looking forward to having more people join me and helping them get their businesses of the ground,” concludes Gale. “It would be an honour.”

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02/06/2017 14:35

ADVERTISING FEATURE

How the ecommerce revolution has blown the retail sector wide open Platinum Business Partners reveals the real opportunity that the ecommerce market presents

ore people than ever before have a very exciting opportunity to capitalise on the growing explosion of online retail. Gone are the days when the only option to buy something was to walk to the local High Street or visit a local shopping centre. Not that long ago, we were apprehensive about buying products over the phone, via Teletext or TV shopping channels, but most of us did it – eventually. Now, the majority of us do shop online (four out of five Britons in fact). The choice, convenience and costeffectiveness of buying over the internet is remarkable and a true game-changer. In the last few years, the online retail sector has exploded with choice, enabling you to purchase anything from your weekly food shop and clothes to expensive electricals and rare collectable items and everything in between. In the past it used to be more aggravation than alleviation – think of traipsing to the post office to return things and having to pay to send things back! Well that’s history. You can now order and get goods the next day, collect or return items at any local shop or have a courier come and collect it

from an address of your choice - and often at no extra cost to you. The fact is, this trend just isn’t going away and the UK is now the third largest ecommerce marketplace in the world after China and the US respectively. By 2020, the value of ecommerce sales are estimated to quadruple to $4 trillion. We’re talking double digit growth here and it’s highly likely these figures will not be shrinking anytime in the foreseeable future. This is all really compelling stuff, but why should you care? Well from a consumer point of view, which is what we all are in the main, there are opportunities for us to have our own retail businesses too. The bonus is that online retail businesses require next to none of the start-up costs associated with a traditional retail business. You don’t need physical premises. You don’t have to pay business rates or the cost of a lease or mortgage. You don’t need to fork out thousands of pounds to outfit and decorate a shop and you don’t need to be there during the hours that a potential customer would want to shop (even when they might not show). This means that any one of us could be selling products online. Almost without consumers noticing, the internet has democratised the business of ecommerce, removing the old-style inaccessible ‘class systems’ surrounding new revenue streams and business models. It’s no longer a marketplace open to just those with huge amounts of capital and time. This is a global business that can be built and operated from anywhere in the world and it’s not just the big brands that are cashing in. Think about the last thing you bought

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ADVERTISING FEATURE

online? A ‘classic’ purchase – a book or CD? Or maybe a beauty product, kitchen utensil, dog lead or in-car phone charger? The possibilities are, of course, virtually limitless. Whatever it was, did you make a note of whom you bought it from? Maybe it was through a well-known ecommerce site such as eBay, Etsy or Amazon for example, but did you know that there are hundreds of millions of small brands and individual sellers online that use these types of platforms to reach their customers; so that whatever you bought may have been sold to you by someone just like you? Not by some big corporate retailer with an established online presence but a small start-up with a global reach that may be being run from a laptop on the kitchen table? That could be you. Sounds easy? Well, at one level, it really is. But there is also more complexity to online selling than meets the eye. This is why Platinum Business Partners has a tried and tested model

for you to follow to make money online. Our step-by-step training programme, which is delivered online, offline and one-to-one, will teach you how to source products that are already being mass-produced by manufacturers and private label them with your own brands. We will also teach you to sell and market them via established ecommerce sites, like Amazon while also Building a valuable business that will become a sellable asset for the future. These are just four of the hundreds of steps involved in building a successful online retail business. But with Platinum Business Partners, you’ll also join more than 100 other people who are currently taking advantage of the explosion of online shopping and selling 300+ uniquely branded products to 100,000 online customers globally. And this business opportunity is even more unique. As well as not needing physical premises or staff, you won’t have to manufacture, store or ship a single product.

Our core promise is to help you turn £20,000 of working capital into a monthly net income of £2,000 to £4,000 – much more is possible and already being achieved, but we prefer to under-promise and over-deliver. Ultimately, you’ll be in control. How much you earn and how much time you commit to your business will be entirely up to you, as will deciding how much and how fast you want to grow your business. Find out more about how this business works and how it can work for you. Contact our team to get your free ‘How to Make Money Online’ guide. T: 01202 652 103 E: info@platinumbusinesspartners.co.uk W: www.platinumbusinesspartners.co.uk

JUNE 2017 | elitefranchise

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Bone appetit With Persian heritage and having worked all over Europe, global citizen Majid Rajaby has introduced Swedish pet-food franchise Husse to British animal lovers BY MARIA BARR

In 1987, Majid Rajaby, an Iranian-born animal lover who had come to Europe earlier that decade, was studying for his degree in veterinary medicine at the University of Nantes in France. At the same time, Swedish entrepreneur Tom Eliasson had just founded Husse, a line of pet food that was made from superior ingredients and designed to be more nutritious. Almost 20 years later, Rajaby would help the company make its first foray into the British market and introduce the Swedish line of pet food to

four-legged creatures in homes across the country. Throughout his career, Rajaby has channelled his passion for animals into working as a vet – with a specialism in fish – and consulting for companies like Biomar, which supplies feed for fish farming. His career has taken him all over Europe to the Netherlands, France and Belgium. And it was while giving pet owners advice on animal nutrition that he first came across Husse. “I’ve always been passionate about helping pets and making them healthier so Husse

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caught my attention – it was different from a lot of the other products out there,” he says. But it wasn’t until 2012, after getting his masters in aquatic veterinary science from Stirling University, that Rajaby considered joining the Husse franchising family. “I saw an ad saying that the brand was looking for a master franchisee in the UK and, since I was already familiar with the product and trusted it, the opportunity excited me,” he says. Husse’s international reputation and long history also meant that while the brand wasn’t familiar to the average Brit, Rajaby was confident it would take off on these shores. What’s more, having spent several years in Scotland, Rajaby had established a life in the UK and was keen to stay on rather than return to France. All things considered, buying the master franchise seemed like the perfect fit. Rajaby tentatively got in touch to request an information pack but rather than taking the details provided by the franchisor at face value, he did some investigating of his own. Having spent years as an academic combing through books on marine biology, he threw himself into the task of researching every angle of the opportunity. There were several reasons for this diligence: not only would he be introducing a European brand to the British market for the first time but he’d only spent a few years getting to know the country and had never worked in the franchising industry. “I really looked at the franchise model, the UK market opportunity and the business’s performance around the world until I was confident that it was a good opportunity,” he says. His deep-dive into the UK market threw up some encouraging statistics: as a nation of dog and cat lovers, Brits were spending over £2bn a year on pet food at the time. What’s more, Rajaby noted that there was a

Majid Rajaby, master franchisee for Husse in the UK (left) and Tom Eliasson, founder of Husse (right)

wider health movement under way. Brits were starting to become more conscious of what they were putting into their bodies – and that healthy mindset extended to the nutrition of their pets. “Over the last few years, people have become increasingly interested in making healthier choices for their pets,” says Rajaby. “When people buy pet food, they look closely at the carbs, protein and energy.” And given that Husse promises a pet food range that’s crafted by nutritionists and made from healthy ingredients, Rajaby was sure that the timing was perfect for the brand to make its entrance. And so after six months of thorough research, Rajaby took the plunge and bought the master franchising rights for Husse in the UK. But rather than staying on in Sterling, the master franchisee set up shop in London – which seemed like the natural choice. “It was obvious to me that London was the best place to be as it’s easier for people from across the country to visit us here,” he says. “It’s the centre of everything.” Having spent the first three months getting the business ready and sorting out the proper documentation, the first major task the master franchisee poured his energy into was finding his first franchisee. To this end, Rajaby invested in a marketing campaign, with a focus on advertising on well-known franchising websites. “The response we got and the leads generated by online ads was unbelievable so it’s something we’ve continued to do over the years,” he says. And while some franchises find it can take a long time to get their first franchisee on board, within a month of the first ad going live a couple in Bristol had signed up to become Husse’s first UK franchisees. They were soon followed by a second and third as positive word of mouth and JUNE 2017 | elitefranchise

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more online ads helped to create a buzz around the business. But as he extended the Husse family, Rajaby was mindful of picking the right people and ensuring that franchisees were armed with all the information they would need to make an informed decision. “It’s so important that franchisees take their time to study the information pack, test the product out on their – or a friend's – pet back home and really consider whether our projections match their expectations of what they’ll earn,” he says. “Meeting them in person also gives us a chance to see how they are with people: a large part of the job involves interacting with customers and being

personable.” It also helps if they’re passionate about animals. “They don’t have to own a pet but they need to care about animal welfare and helping animals stay healthy,” he adds. Once on board, franchisees undergo a thorough induction, learning everything from how to manage their online presence to getting to know the product range. And it doesn’t stop there: franchisees can log into a monthly webinar organised by head office where they can tap into the wisdom of nutritionists and business managers. “The Swedish head office is great at transferring knowledge and encouraging the global network to share its expertise,” he says. As for helping his franchisees win business and find clients, Rajaby has deliberately highlighted the brand’s Swedish origins, rather than trying to tweak it to feel like a British-born company. “People in the UK are in love with all things Scandinavian and Swedish,” he says. “The country’s cuisine is known for being healthy and that association helps when it comes to educating people about Husse’s healthy Swedish recipes.” In fact, Rajaby believes Husse’s connection with Sweden and its 30-year history has helped it stand out from competitors with a longer track record of trading in the UK. However, while Husse didn’t require much localisation for the British market, one thing that’s been important to Rajaby from the start is making sure the franchise was properly accredited in the UK. This is why he’s taken all the necessary steps to become a full member of the bfa – something he’s hugely proud of. “Being recognised by the bfa for complying with their standards has been so important to us and it’s helped build trust among customers and potential franchisees,” he says. This approach has seen Husse’s UK network grow to include over 50 franchisees spread across England and Scotland, with new franchisees being brought on at a rate of around 12 per year. And Rajaby has plans to make even more inroads in the country. “Our calculations show we can have as many as 200 franchises,” he says. And despite the fact that Brexit is causing a degree of uncertainty and making some EU nationals feel slightly hesitant about their future in the UK, Rajaby isn’t shaken. “London was my first choice to set up a franchise five years ago and that’s still the case today,” he says. “We’ve recruited franchisees at an even faster rate this year and I'm confident that if we keep doing what we’ve always done, Husse can be become a market leader in its category in Britain very soon.”

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communicate clearly with your franchise with our franchise management software To arrange a demo, email us at sales@franchiseinfinity.com. Visit www.franchiseinfinity.com for more information.

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ADVERTISING FEATURE

What do you want from a franchise? What do you want from owning a franchise? Typical answers include ‘an income’, ‘capital appreciation’ ‘being my own boss’ or ‘running a business’. Another answer is ‘job satisfaction’.

or those who work in the retail mobility sector, job satisfaction is often expressed as ‘making people’s lives easier or more comfortable’ or ‘contributing to my local community’. Owning an Ableworld Retail Franchise gives you all the usual benefits you would expect from a franchise, ie an income, growth possibilities, the opportunity to run your own business, the security of operating a proven system; but it also gives you great job satisfaction through providing products and services to the elderly and disabled members of your community which make a real difference to their lives.

The ‘caring’ aspect of the Ableworld business model has been an important factor for all the Ableworld franchisees. Franchisees like David, Audrey and Maureen from Ableworld Broxburn who told us that “When we opened the business, we never for a minute realised how rewarding and humbling it would be to deal with some of the wonderful customers who come through our door who are in need of guidance and advice on products to support their daily living. We would definitely recommend the franchise.” Ableworld is at the heart of one of the fastest growing retail sectors in the UK. There are currently more than 15 million people aged over 60 (Ableworld’s core customer group) in the UK today, a figure forecast to rise to 20 million by 2030. Valued at around £1.5 billion annually, the mobility retail sector is set to expand dramatically over the next few years as the demand increases for products such as mobility scooters, stairlifts, adjustable beds, wheelchairs and home aids. Founded in 2001 Ableworld is the

largest specialist mobility retailer in the UK and has been offering its successful business model as a franchise since 2008. Ableworld pioneered the concept of the modern one-stop mobility store and today approximately half the stores are franchise-owned. Ableworld retail outlets can be found in Scotland, England and Wales and franchise opportunities for new stores and a limited number of resales are available across the country. If you would like to learn more about the potential benefits of owning a successful retail business in a growing market and at the same time getting great satisfaction from what you do please contact: Paul Boniface Franchise Director Ableworld Franchise Limited E: franchise@ableworld.co.uk W: www.ableworldfranchise.co.uk T: 01270 613599

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ADVERTISING FEATURE

Clean up with a Techclean franchise If you’re looking for a business opportunity that is affordable, offers flexibility and isn’t dependent on any one market sector then Techclean could be the ideal choice

ith an established pedigree in cleaning IT equipment dating back to the 1980s, Techclean provides a specialist cleaning service for workplace desktops, communication centres and computer data rooms. Current customers range from big names like EDF, Disney and Porsche to universities, hospitals and the Public Service Ombudsman in Wales. Research shows that there are 200 times more bacteria on a computer keyboard than on a regularly cleaned toilet seat – in fact in many offices you’d be better off working with pen and paper in the ladies or gents than at your own desk. Additionally, the Centre for Disease Control and Prevention (CDC) estimates that up to 80% of all infections are spread by hand contact with contaminated surfaces and direct human contact. According to the 2016 CIPD Absence Management Report, absenteeism costs British businesses an average of £522 per employee per year. That’s around 140 million days lost to sickness absence across the UK in 2015 with colds, flu and gastric illnesses topping the table of causes. If

you combine this with the statistic that says 33% of people with contagious symptoms struggle into work rather than stay at home, it’s easy to see why providing a hygienic workplace is so important to productivity. General office cleaners may flick a duster over the keyboards and wipe around the desk but they can rarely achieve the level of cleanliness that is essential to keep bugs at bay and extend the life of the equipment. It takes the skill of Techclean’s specialist service to properly clean and sanitise desktops, telephones and communal electronic equipment such as photocopiers and printers. No previous experience is necessary to become a Techclean franchisee as full training is given. You just need to be good with people and have an aptitude for sales and marketing. Philippe Lafon has been running Techclean mid-Anglia for over 20 years. After a career spent in sales traveling all over the country, he was looking for a job nearer to home that involved technology. He heard about Techclean, liked the sound of it and hasn’t looked back since. “I hadn’t even thought about a franchise but after visiting the

Techclean head office I could see the potential,” he says. “I found the team to be really down to earth people I could work with and trust so I signed up. Techclean territories are generous –each catchment area includes at least 10,000 business. No premises are needed, making the franchise a perfect business to run from a home office with minimal outlay. And a Techclean franchise can slot in at any stage of your working life. Former teacher and mother of four Susan Davies set up Techclean South Wales three years ago after her youngest child went to university. She was looking for a new challenge and wanted to grow a business that she could run from home but still get out and about to interact with others. “I just love the diversity of it and meeting different people,” she says. “It’s very satisfying work. We go into an office and in a just few hours we make such a big difference to the working environment. I have a small team of people working with me I call the ‘dream team’ – and customers are always delighted with the end results.” Costing just £19,500 plus VAT, a Techclean franchise stands head and shoulders above other low cost franchise opportunities. Techclean franchisees can expect to achieve a net profit margin of over 50% within the first year of trading. Contact: Emma Downes t: 01530 513300 e: edownes@techclean.co.uk Total Cost: £19,500 + VAT

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Techclean are proud to provide a comprehensive range of specialist system cleaning solutions to a diverse range of customers from FTSE 100’s to government to local businesses, charities, schools and even medical establishments amongst others. Who does Techclean need? + ‘People people’ + Disciplined and well organised + Prepared to put in the hard work to build a business + Able and willing to follow a business system + Good communicators and enjoy building relationships with customers

Support includes: As your franchisor, we believe in supporting you fully in your marketing efforts, The Bardon Group have years of experience creating excellent marketing tools, programmes and collateral, that are effective and practical for franchise owners to follow – alongside the other demands of the business. This activity is backed up by regular email marketing, a comprehensive range brochure, product leaflets and other relevant collateral.

DETAILS: Investment level: £19,500 +VAT Business type: Specialist system hygiene Franchise contact: Emma Downes Techclean Unit 2, Cartwright Court, Cartwright Way, Forest Business Park, Bardon, Coalville, Leicestershire, LE67 1UE Tel: 01530 513300 Email: edownes@thebardongroup.co.uk Web: www.techclean.co.uk

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03/03/2017 14:37 14:06 31/05/2017

A franchiseeâ&#x20AC;&#x2122;s guide to

BY Glen Murphy, client relationship manager, Dennis & Turnbull

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Fintech

From point-of-sale technology to accounting apps, technology is disrupting the way franchises manage their finances

inancial technology – or fintech – is a force to be reckoned with in today’s world. It’s a term used to refer to any application of technology in the financial sector. And when it comes to managing their finances, franchises have lot to gain by embracing the latest tech trends. Of course, innovation in the financial sphere isn’t new: just consider double-entry bookkeeping, Excel spreadsheets and the introduction of online banking. But in the last few years in particular, fintech has grown exponentially. Leaps in computing power, capacity and availability have truly disrupted the financial world, allowing companies to make saving, selling, spending, investing and lending quicker, easier, and more streamlined. So whether it’s the rise of mobile payments or the emergence of alternative currencies, traditional methods of financial provision are being challenged by tech-based alternatives. It’s no wonder, then, that Britain’s fintech sector is booming and attracting worldwide investment. Unsurprisingly, traditional business models have been demolished in the wake of fintech’s success. For instance, high-street banks are no longer the only option. Why would somebody pay 5% to 7% in fees to transfer money abroad with their bank when a few quick taps on TransferWise, a moneytransfer app, means they can pay just 0.5%? And investment-management services are no longer just reserved for the wealthy: the Nutmeg app allows even small-scale savers to set goals and invest their cash online accordingly. What’s more, a variety of crowdfunding and peer-to-peer lending platforms are allowing entrepreneurs to get funding quickly from anywhere in the world from people they’ve probably never met. Technology has rewritten the old rules when it

comes to the way businesses are funded and, as a result, it’s never been cheaper to set up and develop a company. There’s currently still a strong place in the market for highly regulated and tightly governed institutions like banks, which still hold the monopoly when it comes to things like current accounts, savings and mortgages. However, while the banks have the advantage of security, tech companies are able to move and adapt to the needs of the market far more quickly. Just as ATMs pushed branch efficiency forward and smartphone banking allows account holders to manage many of their banking requirements themselves, banks will have to find new ways to keep up or join forces with tech startups. Additionally, legislation will have to move to regulate the industry. The EU introduced a payment institution licence in 2009, allowing many fintech startups to compete in a single digital market, simplifying payments for consumers and business across Europe. How franchisees can reap the benefits Franchisors have much to gain from fintech, especially when it comes to monitoring the financial performance of a large network. For example, having all franchisees and their businesses on a common cloud-accounting and -bookkeeping system gives everyone in the JUNE 2017 | elitefranchise

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Fintech

network clear visibility. Looking at an easyto-understand dashboard of data, franchisors are able to track performance and see exactly where any gaps, trends or strengths are. It can be incredibly difficult and time-consuming for a franchisor to look at and analyse each franchisee in isolation and you could end up missing out on some crucial insights. But by being able to take a bird’s eye view of the whole network and drill down to see more detail or spot patterns, they can understand exactly where they need to intervene. This ensures they’re using their resources in the best possible way and that the right parts of the business are receiving the right assistance. Fintech can also support franchisees on the front line of customer service. Payment processing software and electronic point-of-sale (EPOS) systems are a major area of fintech development and some exciting startups are coming up with innovative improvements. Take iZettle, which allows small businesses to take card payments through a smartphone or tablet, doing away with the need to invest in expensive hardware. Whether it's taking payments, tracking stock or producing sales reports, EPOS systems provide a fast and

efficient way of dealing with customers and processing sales. Consumers demand ever faster and simpler ways to pay and franchises that invest in the latest point of sale technology stand a better chance of keeping them happy. A franchisee’s life can also be made a bit easier when it comes to managing their accounts. Quickbooks and Xero are just two of the many cloud accounting systems available that allow businesses to manage their accounts wherever and whenever they are. Meanwhile, bookkeeping platform Receipt Bank links directly to these systems and makes entering data on bills, invoices and receipts less resource-intensive, allowing business owners to get on with their day job. However, some franchises may find that although they’re inspired by all these fintech solutions, in reality they’re bound by the franchise agreement to use the systems determined by the franchisor. That being said, it’s important to remain aware of opportunities and innovations that can benefit your business and share any ideas you have with your franchisor. After all, thanks to the rise of fintech, innovation in finance isn't just the domain of the big players.

Britain’s fintech sector is booming and attracting worldwide investment

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Clearly the Right Choice Clear Brew have been operating from our head office in Cornwall for over a decade and we are now happy to offer franchise opportunities to those who would like to become a part of Clear Brew. We provide a regular dedicated beer line cleaning service to the licensed trade, including; public houses, social clubs, sports clubs, holiday parks, hotels and anywhere that has a traditional, licensed bar.

We recently scored a massive 91%! in a survey carried out by our franchisees and have as a result been awarded 5 stars. Thatâ&#x20AC;&#x2122;s a massive vote of confidence from our existing franchisees. If you are interested in being part of the team, want to be your own boss and are looking for a great job opportunity, then contact us today. We are looking to expand nationwide and we are seeking highly motivated individuals or couples who are enthusiastic, good communicators and have a desire to succeed. This really is a golden franchise opportunity with an introductory offer of only ÂŁ15,000 + vat. You can run your business from home and enjoy low overheads, an excellent daily cash flow, the benefit of high profit margins and massive growth potential. The franchise provides a fantastic opportunity to become your own boss providing a vital repeat service to your customers regardless of the state of the economy. Please do not hesitate and contact us today for a full information pack. 0800 781 0577 www.clearbrew.co.uk enquiries@clearbrew.co.uk CLEA001 clearbrew fp.indd 1

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ADVERTISING FEATURE

Winning position:

Entrepreneur learns the true meaning of business ownership

tuart Wright was drawn to business ownership from an early age. He started his first business at the age of 21 with just £26, selling his basket of sandwiches around local offices in Harrogate. Six years later his business had grown to £1.5m turnover and 40 staff and by most people’s standards Wright was in a winning position. Common frustration But Wright saw the business plateau. He was a young man with a new daughter and he was working lots of hours for very little rewards - a common picture of a UK business owner. His frustration led to him selling his business for much less than it was worth in 2003. His next business saw him importing silver jewellery from Mexico and showcasing it in hotels across the North of England. Yet again the business grew and yet again he became frustrated. Wright explains, “I started to blame the same things as I did in my previous business - the staff, the market conditions. Then my accountant gave me a copy of The E-myth by Michael Gerber and I started to wonder if maybe the common denominator in these businesses was me: I was the problem. “I understood I had reached a ceiling in what I knew about running a business. So, I committed to lifelong learning. I began reading all sorts of business books and attending seminars and things improved but it was slow progress. So, I decided to get some help. In 2007 I hired my action coach, Chris Fordy. “Under the guidance of my him, my jewellery business flourished. I was free from the day-to-day operations of the business and so I looked at other opportunities. I decided to buy an EnviroVent franchise, a domestic ventilation business. With ActionCOACH’s help this grew to generate an annual six-figure profit and double-digit growth year-on-year. I ended up with five EnviroVent franchise territories and only had to do half a day a week in my business owner role.” 58 elitefranchise | JUNE 2017

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Planting a seed “So, one year ago, I found myself sitting in my garden wondering what to do next. My initial thought was to spread the word about ActionCOACH – it seemed mad to me that more business owners weren’t using an action coach. I offered to host a seminar and thought it would be a great way for Chris to win more clients. I enjoyed the seminar and, sure enough, people showed interest in being coached and that’s when the seed was planted. “Chris told me about the option to build a firm of coaches with the ActionCOACH franchise, not just becoming a self-employed action coach. The thought of building an ActionCOACH team appealed to me and I spoke to Ian Christelow, the UK co-founder of ActionCOACH, to see what the next steps were. “Ian explained that my only limitations on growing my ActionCOACH firm were the limits I put on myself. I completed the UK training in the last week of July and came away with the overriding sense that I couldn’t fail with all the systems to follow. “On August 1 2016, I started my ActionCOACH business in Yorkshire and Lincolnshire with a huge goal. I wanted to build a firm of 50 Action Coaches supporting 1,000 businesses a year. At that level, we will be making a massive

different to our local economy. I believe that business is a force for good. If a business is truly successful then that is down a great team. If a team is successful then they are enjoying work and are rewarded for their work and life becomes a seven-day weekend! “Of course, I had to start somewhere. Before I started the initial training, I had spoken about ActionCOACH at my BNI networking group which has proven to be a fantastic client generation activity for me. In only four months I have secured 12 one-to-one coaching clients, with average one-to-one coaching clients investing £1,500 per month, and seven group coaching clients. I never set out to concentrate on just one lead generation activity but I haven’t had time to do anything else. “It’s a testament to ActionCOACH I’ve been able to leverage the power of the franchise system very quickly having been coached myself. About 20 years ago, no one knew what business coaching was and our Action Coaches have represented and grown the business coaching profession in the UK almost single-handedly. In fact, in the early days of ActionCOACH, when Brad Sugars first started up, it took him two years to hit the same number of clients I have built in four months that shows our amazing progress in 23 years as a team.”

Building the team “How long will it take me to build my firm of 50 Action Coaches? Well, my first employed coach is being recruited now. I then want to steady the pace of my coaching commitments to enable me to build the firm from there. One of my daughters is joining me to get some sales experience. She couldn’t find a better business than ActionCOACH to benefit from a wealth of knowledge on sales and teams. My other daughter wants to start her own business, so I’ll be coaching her to develop the ActionCOACH definition of a ‘real business’ - a commercial, profitable enterprise that works without her. Once she’s progressed from self-employed, she truly can call herself a business owner.” If you’d like to build a team of Action Coaches and you get a buzz from helping others succeed, love learning and developing yourself, have enjoyed success in your career or sport, then find out more by watching the 6-minute overview video at actioncoach.co.uk

JUNE 2017 | elitefranchise

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Diversity in marketing

The diversity Consumers are demanding ads that reflect diversity – but are franchises listening? BY MARIA BARR

ate last year, Maltesers ran a TV ad showing a group of women talking about their dating disasters while tucking into the snack. Fairly routine, except for the fact that the script was inspired by real-life stories of disabled people and the ad starred Storme Toolis, an actress with cerebral palsy. Maltesers’ campaign proved to be a hit with viewers, resulting in an 8.1% uplift in sales and a 20% increase in brand affinity. This came as no surprise to Rania Robinson, managing director of Quiet Storm, the ad agency, and joint chair of diversity for The Marketing Agencies Association, the trade body for marketing agencies. “The subject of diversity is coming to the fore and this has largely been driven by consumers, who are telling us they want brands to consider it,” she says. And Maltesers isn’t alone: clothing brand H&M promoted its autumn/winter 2016 collection with an ad depicting a septuagenarian, a wobbly tummy, a woman with a shaved head and – in a rare TV appearance – armpit hair. Large or small, young or old, brown or white, gay or straight, working class

or super rich, able-bodied or disabled: people want to see a broad spectrum of life in ads. In fact, according to research by Lloyds Banking Group, although only 19% of people featured in the ads it studied were from minority groups, 65% of people would feel more favourable about a brand that promotes diversity. And for Robinson, this trend is all about trust. “There’s a general lack of trust in politicians and in marketers, which is making authenticity more important than ever – and diversity plays a big part in that because it’s about brands reflecting the world as it really is.” All this means that stopping to think about diversity isn’t just a nice thing to do: it makes commercial sense too. Brands that want to build trust with their consumers and sell more products need to consider how authentically they’re representing different types of customers. “There have been so many studies that connect diversity with commercial gain,” says Robinson. “And the Maltesers ads show that just because you’re representing a minority audience, it doesn’t mean the mass market won’t respond well.”

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debate

In the franchising world, while not all franchise brands are shouting from the rooftops about their diversity credentials, many are making an effort to avoid falling back on casting the same types. “We don’t do diversity for its own sake but, because our customer base is naturally very diverse, we want to represent all of them,” says Meredith Jurek, chief marketing officer at Anytime Fitness, the gym franchise. “It’s simple: whatever stage of their fitness journey they’re at, people want to see people who look like them rather than rock-hard bodies they can’t relate to.” The brand deliberately avoids featuring models with perfect physiques, instead casting people with a relatable look. Franchises are also becoming increasingly aware that leaving big groups of people out of their marketing messages could cost them when it comes to recruiting the best employees or franchisees. “I prefer to speak about inclusivity rather than diversity,” says Joshua Barker, marketing manager at Dwyer Group, the franchise company that owns Drain Doctor, Bright & Beautiful, Countrywide Grounds Maintenance and many other brands. One reason the franchise is mindful of how its marketing messages might be received is that it wants to attract the best possible people – regardless of their ethnicity, disability or gender identity. “We want to fish in the largest talent pool so it wouldn’t make sense for us not to be inclusive,” he says. But while it’s obvious why a brand with a broad, diverse target market would want an equally diverse marketing campaign, a franchise with a more niche audience might understandably choose to reflect its existing customer base. Take the recent TV ad for Barking Mad, the dogsitting franchise, which starred a white woman appearing to be in her 40s – essentially the firm’s average customer. “We’ve got a strong idea of who our audience is and we usually try to represent them in our marketing,” says Richard Dancy, the franchise’s senior marketing manager. “Are they diverse? Probably not. But there’s no point casting someone from a minority group if they’re not representative. Stereotypes are sometimes there for a reason.” That may be true for Barking Mad but there are no doubt many brands out there that could do more to speak to a broader audience and weed

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Diversity in marketing

out the unconscious biases that could be focusing their attention on a very narrow audience. “You’ll often find that franchises have a type and they’ll only reflect people they think are their typical customer,” says Pip Wilkins, chief executive of the bfa. “And while that’s understandable in some cases, there is room for improvement.” And this isn’t just about the people a franchise chooses to include in its ads: there are plenty of other unconscious factors that could alienate potential customers. “Many franchises could do more to create a culture that’s aware of diversity and just be conscious of the decisions they make,” she says. “This can be something as simple as asking questions like ‘why are we using the colour pink in this?’” But embracing diversity is easier said than done: while franchises do seem to agree that having an awareness of the issue is a good thing, many stop short of creating specific brand guidelines that would guide decisions. At Dwyer Group, a commitment to being inclusive is enshrined in the company’s code of values but Barker is wary of anything more prescriptive. “We’re aware of diversity when it comes to casting people for videos or choosing photos but there are no guidelines or quotas – you shouldn’t choose people for an ad because of their race or religion,” he says. “It can feel demeaning when you put people in boxes: discrimination is

Diversity in marketing starts with hiring diverse people Rania Roninson, The Marketing Agencies Association

still discrimination, whether it’s positive or negative.” And it’s understandable why some franchises might be scared of veering into any kind of territory that smacks of tokenism or coming across as insensitive. “It’s a delicate subject to tackle, especially when you’re starting from a position where your organisation isn’t very diverse,” says Robinson. Nobody wants to be accused of practicing diversity as a box-ticking exercise or committing the ultimate faux pas of being inauthentic, after all. But swerving the subject altogether or failing to address diversity in your marketing team can be equally dicey, as Pepsi found out after an ad starring Kendal Jenner was criticised for appropriating the imagery of black and feminist protest movements. Crudely co-opting the symbolism of images like young, black protester Ieshia Evans standing up to riot police and making

it all about consumerism looked thoughtless at best. The campaign forced the industry to ask itself some tough questions and consider whether agencies were becoming too homogenous and, as a result, out of touch. “Diversity in marketing starts with hiring diverse people,” says Robinson. “Just look at Brexit: it was a massive shock to the advertising world because we all come from a similar backgrounds and exist in a London bubble that isn’t representitive of the majority of the country. It’s important to have people from diverse backgrounds who can bring a range of insights to the table.” And Wilkins believes that precisely because franchising attracts people from all walks of life, it’s in a strong position when it comes to pushing diversity up the order of priorities and effecting visible change. “There’s a growing consciousness among the industry and franchisees absolutely have the power to make a difference,” she says. Wilkins also believes that rather than wait for the franchisor to roll out new guidelines on diversity, franchisees should feel empowered to determine how they approach the issue on a local level. “While senior leadership from the franchisor is great, franchisees are often able to determine their own marketing material,” she says. “A lot of change can happen from the bottom up.”

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FANCY TRADE PRICE LUXURY HOLIDAYS? WHY NOT RUN YOUR OWN TRAVEL BUSINESS?

To find our more call us today on 0121 200 5561 www.familyholidaysfranchise.com opportunities@familyholidaysfranchise.co.uk

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COMMUNICATE CLEARLY WITH YOUR FRANCHISE with our franchise management software

To arrange a demo, email us at sales@franchiseinfinity.com. Visit www.franchiseinfinity.com for more information.

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Managing your franchise in the cloud Keeping everyone on the same page starts with giving your franchise network easy and secure access to the information they need

loud-based systems have become increasingly popular in recent years among franchises that want to manage all aspects of the franchise network from one centralised, secure system. Franchise Infinity is the all-in-one tool that allows you to manage critical aspects of your franchise – such as compliance and communication – securely and efficiently. It’s been built by experienced practitioners who understand the intricacies of running a franchise. This is achieved through effectively addressing the biggest franchisor and franchisee pain points. When it comes to managing a large network spread across multiple locations, upholding consistent standards requires high levels of organisation. Giving your franchisees and operational support teams easy access to data in the cloud through a smart device drives higher levels of operational efficiency. This means you spend more time working on your business and not in it.

Franchise Infinity can be downloaded onto an Android or iOS phone and used on any desktop or iOS device. The platform is also 100% customisable so you can brand it with your logo and colour palette. You can customise the modules, choosing what each one contains, how it operates and who can access it. Every franchise is unique in its setup, so it’s important that the tools you use to keep everyone on the same page are customised to your needs. Franchise Infinity offers a comprehensive suite of franchise tools to assist both the franchisor and franchisee. These include compliance audits and checklists, operational support team access and support, learning management systems,

cloud storage, task management and analytics measuring performance at all levels. Thanks to the cloud, franchise management is becoming easier, more efficient and, importantly, scaleable. Using the software as a service model, subscriptions to Franchise Infinity can be taken out on a per person basis so you only pay for what you need. To find out more, email sales@franchiseinfinity.com or register your interest at www.franchiseinfinity.com

JUNE 2017 | elitefranchise

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CYBERSECURITY TRAINING

THE BEST DEFENCE The threat of hack attacks is increasing but training employees is the best way for franchises to shore up their digital defences BY ERIC JOHANSSON

n mid-May, the WannaCry ransomware infected thousands of organisations, including the NHS, across more than 150 countries. But while the attack may have caught some people by surprise, Phil Chapman, senior cybersecurity instructor at Firebrand Training, the IT training firm, wasn’t one of them. “The attacks that make the press are just the tip of the iceberg,” he says. “The cold reality is that this is something that has been bubbling under the surface for an awfully long time.” The increasing number of breaches is due to the technological leaps made over the past few decades: emails, social media and smart devices may have made conducting business easier but they have also increased the likelihood of hack attacks. And if any franchisor doubts that they should invest more in protecting their networks then they’d better reconsider. “The stories and statistics speak for themselves,” says Leon Deakin, partner and cybersecurity expert at Coffin Mew, the law firm. A report from the British Chambers of Commerce recently revealed that 20% of British businesses fell prey to digitally savvy offenders in 2016. And being breached can often be costly affair: not only could companies lose out on hours, if not days, of productive work but becoming a victim could also see their share value plummet. For instance, after Yahoo was found to have suffered a major data breach, the tech giant had to shave $350m off its asking price when the company was sold earlier this year. Additionally, with ransomware cases like the WannaCry attack, companies can be forced to pay the attackers to decrypt their files. Worryingly, many SMEs seemingly aren’t concerned about the rising threat posed by malware. A recent survey by Firebrand Training found that SMEs carry out fire drills twice as often as cybersecurity drills, despite the fact that

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The attacks that make the press are just the tip of the iceberg Phil Chapman, Firebrand Training

businesses experience breaches 125 times more often than fires. The report also unearthed the fact that 46% of businesses with 50 to 99 employees think cybercrime is not a threat to a business of their size, despite ample evidence to the contrary. “Any business or franchisor should be taking the threat of cybercrime very seriously,” warns Deakin. The problem is that it isn’t enough to simply invest in a shiny new firewall: to keep their networks safe franchisors have to ensure their workers know what they are doing. This is paramount, as staff members are often the weakest link in companies’ cybersecurity defences. “Many attacks target the vulnerability of employees at some level,” says Oz Alashe, CEO of CybSafe, the cybersecurity firm. “People make mistakes or, more commonly, are unwittingly conned. It can happen to anyone.” Indeed, 95% of incidents involve human error, according to a report from Lawley, the cybersecurityinsurance company. “The good news is that employees can become your greatest defence through a few changes in behaviour, better education and by raising awareness,” says Alashe. Having acknowledged the need to train franchisees and employees, franchisors should ensure all staff members are given the right education. And it’s necessary for everyone within the network to receive the same guidance if you’re going to keep the company safe. “If the staff don’t receive standardised training, everyone will be working to slightly different processes and have different levels of awareness,” says Alashe. “It only takes one person opening a suspicious email to compromise the business.” However, convincing a franchisee to prioritise cybersecurity when they’re busy launching their own enterprise can be easier said than done, especially if they have to pay for the training themselves. So it can be a good idea to include cybersecurity training as a part of the package covered by the franchise fee. “Security awareness and training might not rank highly on the priority list JUNE 2017 | ELITEFRANCHISE

Cybersecurity training

The ultimate goal is to help strengthen employees’ gut instinct so they naturally make better security decisions Perry Carpenter, KnowBe4

of the franchisee otherwise,” says Perry Carpenter, chief evangelist and strategy officer at KnowBe4, the cybersecuritytraining company. “Having the fee cover it – as well as having it required by the franchisor – removes any excuses.” Once the entire network is involved, it’s vital for the success of the programme that each employee can apply it to their individual role. “There isn’t a one-size fits all programme for every employee,” says Carpenter. “We need to recognise that different job roles are likely require different training plans.” Franchisors are advised to start by mapping out the data each individual interacts with to determine which elements to include in the training and which to skip. “The last thing we want to do is overload an employee with information that’s irrelevant to them,” he says.

Nevertheless, there are elements that should always be included. “The ultimate goal is to help strengthen employees’ gut instincts so they naturally make better security decisions,” Carpenter says. A good starting point is to discuss the different social-engineering tactics hackers use to exploit human nature. These strategies range from the more commonly known phishing attacks to pretexting, which is when hackers obtain privileged information under false pretences. Another common technique is called baiting. As the name suggests, people are lured to give away data by being offered something enticing like free music or tickets. To really bring the point home, educators often put workers through attack simulations. “That way you can detect if they don’t make the appropriate security decision

and immediately adjust their training,” says Carpenter. Additionally, the course should cover the appropriate use of systems, secure ways of handling data and the importance of strong passwords. Restricting the training just to what employees do within the workplace could be a mistake, as cyber criminals aren’t just limiting their tactics to work activities: employees’ personal lives can provide hackers with another point of entry into your systems. “How people behave online at work and at home can present weaknesses that criminals exploit in order to gain access to valuable company information,” says Alashe. While it may seem innocent enough to share holiday pictures and details about conferences you may have attended, that’s the kind of information that hackers can capitalise on. For instance, they could mount attacks by looking up workers online and personalising emails to convince employees that they’re legitimate. “Cyber criminals seek to exploit this information and our human nature,” says Alashe. However, even once franchises have completed their cybersecurity training they can’t rest on their laurels. “It’s critical that franchises don’t consider security awareness and training a one-off,” says Carpenter. “Knowledge that isn’t reinforced and skills that aren’t practiced are quickly forgotten.” Continuously refreshing skills and adding new training to counteract how cyber attacks evolve will keep the network safe in the future. “Cyber attacks are becoming more complex as technology develops and criminals are always finding new means of accessing information so people must keep up to date,” says Alashe. Staying safe requires a lot of investment and effort but when the next major malware attack or data breach hits the headlines then the franchisor will know it was worth it. “Effective cybersecurity is not a simple task but it is a crucial one,” concludes Deakin. “It seems this message is finally getting through.”

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ADVERTISING FEATURE

Finding a familyfriendly franchise After leaving a successful corporate career, Lorraine Gannon realised that what she needed was to leave the office politics behind and spend more time with her young family by owning her own business

efore becoming a franchisee at procurement franchise Expense Reduction Analysts (ERA), Lorraine Gannon had an impressive career in the public and corporate sectors and had also co-owned a chain of hotels and restaurants. But there came a point where she realised something had to change. “I'd worked in the corporate world all my life by the end I hated it,” she says. “In fact, I when I was made redundant I found myself actually feeling a bit glad. After that, I went into the public sector, becoming a chief accountant at a government animal health agency. But I wound up being miserable there too. Red tape, office politics and a seemingly constant change of management meant you never knew where you were from one day to the next.” And the last straw for Gannon came after she was promoted. “I was given the promotion on the Friday and went home and celebrated, as you'd expect,”

she recalls. “But I then found out the following Monday morning that there was another new financial director and my promotion was reversed. It was heartbreaking and infuriating.” Gannon and her husband have two young children, Charlotte and Ben. Ben suffers from a disability and needs extra care and supervision. As he gets older, the level of care required and the support he'll need will only increase. It was this fact, alongside Gannon’s desire to escape a job in which she felt frustrated and unfulfilled, that led her to consider owning her own business. “I realised that living with Ben’s disability was going to get harder,” she says. “As he gets older, there will be more appointments to attend and things will generally become more complicated. What's more, my husband is a police officer so has very little flexibility. It was obvious that something would have to change and it was at that point that I realised I needed to find an opportunity that would benefit us all.” Having already had previous business ownership experience as the co-owner of a chain of hotels and restaurants, Gannon knew that starting a business from scratch would be difficult. But while doing her research, she learned more about how franchising can be a way for people to own their own business. The more she read, she saw that, with a proven model and support team, a franchised business was much more likely to be a success. “Starting my own accountancy business would have been the most

obvious thing to do but I wanted something with more of a corporate focus because that’s what I was used to,” Gannon says. “So I started looking at white collar opportunities in the franchising sector.” It was at that point that she came across ERA . “It was a perfect fit for me,” she says. “The consultancy angle ticked all the boxes. But what attracted me most was its approach to growth. The head office team made it very clear that ERA already had an

I realised I needed to find an opportunity that would benefit us all

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established network, so it wanted to help its franchisees grow their businesses rather than keep growing the number of franchisees in the network. And as franchisees earn a higher income, it also becomes more profitable. That appealed to me.” ERA franchisees across the UK and Ireland are expertly trained in helping organisations save money and boost their performance through effective procurement, improved supplier management and smarter spending habits. Its award-winning programme of training and support is designed equip you with all the knowledge and confidence you need to successfully launch and run your business, whatever your skills or background. New franchise partners undertake a tailored, five-week course consisting of classroom and hands-on learning at the ERA Academy. “I got my first client one week after I completed the training because I followed the model to the letter,” says Gannon. “The ongoing support is great and they're always more than happy to answer any questions you have. Depending on what my challenge is, I pick from a range of business workshops or I chat to other people in the network to get new marketing ideas. Your franchisor can’t do everything for you but they certainly try to make sure you have all the tools and support you might need.” When you join ERA, you join a network of over 150 consultants, each

I would never go back to working for someone else. I love being able to implement my own strategy an expert in their own field. Access to this combined knowledge ensures that your business isn’t confined to one or two cost centres or even your own area of specialism. ERA's franchise partners work together to maximise opportunities for collaboration, expansion and guidance. Many franchisees also find themselves excelling in new and sometimes surprising areas. “I’ve been most surprised to discover that despite the fact that I'm from a numbercrunching background, I’m good at things like sales and marketing,” says Gannon. “It’s been a real revelation. I thought I'd be a project specialist but as it turns out, I’m on sales full-time now and loving it.” And being part of the ERA network is about more than just being in business with the best, as Gannon found out in 2014. “A personal highlight of being part of the ERA family was when the head office team approached me to ask if they could do something for my son,” she recalls. “I was a bit overwhelmed, to be honest. People got together and did a charity bike-ride from Edinburgh to Southampton to raise money. I was

so touched. As a result, we were able to buy an off-road wheelchair for Ben that can go on the beach. It’s amazing.” With her initial goals well and truly smashed, Gannon has her sights set on building a business that will act as both a pension pot for her and a legacy for her children. “I would never go back to working for someone,” she concludes. “I love being able to implement my own strategy and grow. I always wanted that direct relationship between how much effort I put in versus how much I earn. And now I have it.”

For more information, why not get in touch: T: 023 8082 9737 E: franchiseteam@erauk.net W: http://erafranchise.net

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Henry and Faye Hamann

Gotta have faith BY ERIC JOHANSSON

Becoming InXpress franchisees has enabled Henry and Faye Hamann to grow a business on three continents. But their franchise never would have gotten off the ground without help from their church

rom launching an innovative tech firm to starting a plumbing business, kicking off any enterprise requires courage and conviction. But it was faith of another kind that helped set Henry and Faye Hamann on the path to not only become the franchisees of InXpress Redhill, the shipping franchise, but also to grow their business across the world. The story behind the spouses’ success started when Henry lost his job. “The company I was working for went into liquidation,” he explains. While they immediately started looking for employment elsewhere, months passed without any result. “It was very difficult for us,” he recalls. “And then somebody at our church offered us money to help us set up our own business.” And it wouldn’t take long before the Hamanns took him up on the offer. But while they were compelled to start a business of their own, the couple felt that building something from scratch would take too long to turn a profit. Fortunately the couple found the solution to their predicament: franchising. “I liked the idea of getting the keys to an operation we could start up immediately without a major setup,” says Henry. For the best part of a year, he looked at

numerous franchises but none of them were to his liking until InXpress caught his attention. “It fit me perfectly because I had worked in shipping for many years,” says Henry. “Then I contacted the guy from the church and asked if his offer was still on the table. Not only did he say yes but the money offered was the exact amount needed to buy the franchise, including VAT.” However, just because the entrepreneurs had the money We literally they needed, that didn’t mean ended sitting on purchasing the franchise was without challenges. The money boxes, sleeping still hadn’t been transferred when on boxes and they set up a dinner meeting with John Thompson, founder and CEO eating on boxes of InXpress, to buy the franchise. Henry Hamann “I called the bank and told them that the money was coming: I said I would write the cheque even without the funds in the account,” says Henry. Having ended the conversation, he rushed to the station to catch the London train. It wasn’t until he was hurrying to meet the founder and buy the franchise that the bank manager called him back. “He told me that they would honour the cheque but that I should never ever do this again,” laughs Henry. “So yeah, we nearly bought the franchise with a bouncing cheque.”

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Are you dreaming of owning your own photographic business?

take that exciting step now! Good work life / balance Initial training in your own home Excellent 24/7 support systems One to one mentoring Network forum All equipment and marketing materials included

0800 622 6008 For more information about joining the Photography for Little People franchise, please call Jan Massey 01207 299500 OR 07826841224

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Henry and Faye Hamann

The success or failure of any enterprise depends on how well founders attract clients. Fortunately, the couple was able to rely on their personal networks to source their first customers, with Faye setting up a meeting for her husband through a contact at a charity they’d been involved in. This person helped them set up a pitch with a big company just months after launching their franchise. “At the time I didn’t even own a laptop,” Henry says. “So I was going to have to do the whole presentation with just a few brochures.” And even if she’d helped set up the initial meeting, his wife started to worry that they may be in over their heads. “Faye told me not to go and make a fool out of myself: she thought no big company would do business with a one-man-band like me,” he says. Luckily the prospect of failure didn’t deter him and he walked out of that meeting with 10% of the company’s worldwide distribution. However, while signing up clients was an important step towards ensuring the business’s future success, the couple

still hadn’t secured a warehouse to store deliveries. Their solution was to get all the shipments sent to their house and carry each box into the building by themselves. “We literally ended up sitting on boxes, sleeping on boxes and eating on boxes,” says Henry. But neither this nor the fact that they had to label each box by hand stopped the couple from pushing on. “Nothing is impossible,” says Faye. “Most people shy away from things they haven’t been done before or don’t know much about but we find a way to make it work.” This attitude has certainly served them in good stead: their work ethic means word quickly spread about the franchise and its client base has largely grown organically. But franchisees are unable to grow without the support of their franchisor. Fortunately, InXpress has been on hand to help them at every step. “Whenever a prospective franchisee calls me to ask whether or not I would buy an InXpress franchise again, the answer is always ‘yes’,” says Henry. Not only were salespeople and members from the central office

Most people shy away from things they haven’t done before or don’t know much about. But we find a way to make it work Faye Hamann

available to help get the business up and running but the same team has also been on hand to help iron out any questions that the couple may have had over the years. “There was always someone who could come around and help you,” says Henry. However, InXpress’s assistance wasn’t limited to simply upskilling the couple and their employees. The franchisor has also supported the Hamanns when they were looking to move into new markets. “That’s the biggest help that we’ve got,” says Henry. “When we needed access to the Singapore market to help one of our clients, John Thompson put us in contact with the guy setting up an InXpress there. And he helped us with things like negotiating with various couriers.” The couple has received similar help in the past few years with launching an agency in Dubai and negotiating to start trading in South Africa. “If they didn’t have a presence there, they would put us in contact with people who could help make it work,” Faye says. And as the couple is also looking into growing the franchise’s operations in America and Europe, this support will certainly come in handy. Having grown their shipping business from a stack of boxes in their living room to operating across three continents, the success of the Hamanns just goes to show what can be achieved if you believe in yourself and have a little faith.

74 elitefranchise | JUNE 2017

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Expanding internationally

Act S global Following international regulations can be tricky for franchises looking to expand overseas. But a little support on the ground can help you dot the Is and cross BY Kate Legg, CEO, Komerse

ince franchising is based on the principal of replicating a business multiple times, there is – at least theoretically – no reason why a franchise has to be restricted to one area or even one country. For example, Canadian coffee shop Tim Hortons is preparing to launch its first stores in the UK, joining a long list of now familiar franchise networks, including McDonalds, Subway and Domino’s Pizza. And it’s not just networks moving across the pond: many UK brands are expanding in Europe, as well as venturing further afield into places like China and Dubai. The reason why so many franchises are choosing to do this is obvious: international expansion means access to new franchisees, customers and revenue streams. But how they go about doing it can be more complicated.

76 elitefranchise | JUNE 2017

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Expanding internationally

Routes to international markets There are several routes open to a franchisor that chooses to operate internationally. The first and perhaps simplest method is for the franchisor to operate directly in international territories. The franchisor grants franchises to franchisees in the local area, either directly or, more commonly, through a subsidiary or associate company set up for this purpose. The advantage is that the franchisor retains direct control over its franchisees and, significantly, the franchisor gets to retain all of the franchise fees without having to pay a cut to a middleman. While this approach seems attractive at first glance, the franchisor does risk not being familiar with local culture and laws in the new area. It can also be difficult to properly support franchisees and enforce the franchise agreement if franchisor and franchisee are based in different countries. In light of this, the direct route tends to be appropriate only where the new area is legally and culturally very similar to the original country, for example, the US and Canada or England and Ireland. To overcome the risks associated with a lack of local knowledge, the franchisor will often work with a partner from the new territory. This can be done in a number of ways, most commonly by granting a master licence to the partner who will be responsible for establishing and growing the network in the local area. This will normally include recruiting and policing local franchisees, although in some instances the partner will themselves operate franchised outlets. For the franchisor, one of the benefits of this approach is that they’ll be able to exploit the partner’s local knowledge. In addition, the burden of recruiting, supporting and policing franchisees in another part of the world is lifted – or at least shared. The main downside is that

franchise fees will have to be shared between the partner and franchisor. Local laws Compliance with local laws will naturally be a key consideration for any network looking to expand overseas. Franchising in the US is far more heavily regulated than in the UK and Europe, making it generally easier for a US network to expand into the UK than vice versa. Compliance with US law includes both adhering to federal and state laws. This means that the legal

requirements that apply to the network can vary from state to state even within the US. Although franchising across Europe is less regulated, there are still differences in local territories. For example, France has specific rules on the information that must be disclosed to potential franchisees before they sign up. Germany also has pre-contract disclosure requirements, albeit introduced through case law rather than statute. The UK doesn’t have these strict requirements. Disclosure of certain information precontract is considered good practice but is not a legal requirement. Franchise agreements always contain non-compete and confidentiality

provisions to protect the franchisor’s knowledge, brand and systems but can be seen as anti-competitive. This means they must comply with competition law. In the UK and Europe, the rules on competition are similar, having generally been derived from the same piece of EU legislation. In the US, restrictions may be examined under anti-trust laws, as well as under laws in each state. Local tax laws and the proper tax treatment of franchise fees and royalties will also need to be thoroughly checked. In view of the differences in territorial laws, franchisors that are looking to expand overseas ought to have their franchise agreement reviewed by a local lawyer in that territory to ensure it’s compliant with local rules. Brand protection A network looking to expand overseas will also need to consider international protection for its intellectual property. Trademarks can be protected by national registration in the target countries. In some cases, it may be appropriate to take advantage of systems that allow a single application to be made for registration across multiple territories – such as a Community Trademark, which offers protection in all EU member states, or the Madrid System, where a single application can result in protection in up to 114 countries, including China and the US. Similarly, the operations manual is protected by copyright law in the UK but the franchisor will need to check the scope of copyright protection and any formal requirements for copyright to exist in the target territory. There’s no doubt that international expansion offers a wealth of opportunity for franchise networks. Just make sure you avoid the pitfalls by being aware of all the potential legal challenges you might face. JUNE 2017 | elitefranchise

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