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October 2016 £4.50

elitefranchisemagazine.co.uk

Pearson Anderson

How Amit Kainth created his franchise network almost entirely by accident

Camile Thai

Brody Sweeney dishes on venturing into the London food delivery market

Outsourcing advice

Why you must leave your ego aside when bringing on a franchise consultant

None but the brave

Whether it’s relocating from Sydney to the UK or swimming the Cook Strait, Danny Hanlon doesn’t shrink from a challenge. And fortune favours the brave: since 1998, he’s grown Trend Transformations to a network of over 200 locations around the globe

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

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

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

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


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


CONTENTS

54 40 REGULARS 9 Editor’s letter 10 Contributors 13 News & events 81 Franchise diaries COLUMNS 15....Pip Wilkins 17....Claire Robinson 27...Nigel Toplis 29...Tony Bowman FEATURES

60 Getting to the truth

Handling investigations properly can save franchisors a lot of pain

64 Don’t fear the rise of the recruitment machines Investing in tech can boost franchisee recruitment

70 The bare minimum

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

Minimum performance clauses can help you get more from franchisees

30 The second coming How its founder’s near-death experience changed Pearson Anderson

34 Consultants: are you being served? Getting the most from your franchise consultant

40 Honing a recipe

Irish Camile Thai serves up some spicy expansion plans

46 Mastering the cashflow forecast

A carefully calculated projection is the next best thing to a crystal ball

54 Making your reputation

Improving your rep is trivial in the digital age 6

64

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20 THE ELITE INTERVIEW

Danny Hanlon is taking Trend Transformations to the next stage of its evolution

October 2016 | elitefranchise

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SUPPORTING BRITISH BUSINESS

WE COMMIT TO GROW OUR LENDING TO BRITISH BUSINESS

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

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

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

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WELCOME

October 2016 £4.50

elitefranchisemagazine.co.uk

PEARSON ANDERSON

How Amit Kainth created his franchise network almost entirely by accident

CAMILE THAI

Brody Sweeney dishes on venturing into the London food delivery market

OUTSOURCING ADVICE

VOLUME 04 ISSUE 10 / 2016

Why you must leave your ego aside when bringing on a franchise consultant

NONE BUT THE BRAVE

Whether it’s relocating from Sydney to the UK or swimming the Cook Strait, Danny Hanlon doesn’t shrink from a challenge. And fortune favours the brave: since 1998, he’s grown Trend Transformations to a network of over 200 locations around the globe

EDITORIAL Josh Russell – Acting Editor josh.russell@cemedia.co.uk Maria Barr – Acting Web Editor maria.barr@cemedia.co.uk Eric Johansson - Feature Writer eric.johansson@cemedia.co.uk DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Jenny Allen – Junior Designer jenny.allen@cemedia.co.uk Dan Lecount – Web Development Manager dan@cemedia.co.uk SALES Gemma Campion – Sales Manager gemma.campion@cemedia.co.uk MARKETING David Thomas – Group Marketing Manager david.thomas@cemedia.co.uk Laura Hyde – Marketing Assistant laura.hyde@cemedia.co.uk Mark Walker - Marketing Assistant mark.walker@cemedia.co.uk CIRCULATION Paul Kirby – Circulation & Data Manager paul.kirby@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk ADMINISTRATION Laura Smee – Administrator laura.smee@cemedia.co.uk DIRECTOR Scott English – Managing 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 2016. All rights reserved No part of Elite Franchise may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor. Elite Franchise will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the printing process, images can be subject to a variation of up to 15%, therefore CE Media Limited cannot be held responsible for such variation. cemedia.co.uk

Rolling with the punches A

s in nature, the franchises that thrive are those that can evolve. It’s not the meek but the most adaptable that shall inherit the earth. While Jane Maudsley came to franchising at a difficult time, by learning to balance the demands of her business with her personal life, she has found out how edifying rolling with the punches can be. Another person who has learnt the importance of making the most of what life throws at you is Amit Kainth. After his first business and his health failed, confronting his own mortality helped him find both spiritual and franchising fulfilment. This led him to build Pearson

Anderson into a thriving network with its sights on an IPO in 2017. But it’s this month’s cover star Danny Hanlon who offers perhaps the best example of how meeting change with a smile can bring commercial success. Having travelled halfway around the world to bring Trend Transformations to the UK, he hasn’t only embraced change on a personal level: he has also presided over a major rebrand that has seen the franchise significantly extend its product line and become a hit with a younger demographic. So don’t be scared to relax, grin and let the changes in.

JOSH RUSSELL - ACTING EDITOR josh.russell@cemedia.co.uk

October 2016 | elitefranchise

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CONTRIBUTORS

Chris Roberts

Roberts has spent the last month touring the country to deliver business health checks for a client. Having taken in Wales, Northern Ireland and Scotland and consumed more scaldingly hot train tea than he’d care to admit, the Franchise Finance co-owner made it back to the office in time to pen his piece for Elite Franchise magazine: a guide to forecasting your cashflow.

Pip Wilkins

While getting ready for one of the franchise industry’s most hotly anticipated events, the bfa HSBC Franchisor of the Year Awards 2016, Wilkins found herself reflecting on women in franchising. Having amassed over 16 years in the industry, which was recognised when she was appointed as the bfa’s CEO in April this year, Wilkins strongly believes that franchising is suited to women just as much as to men. 10

Jane Maudsley

While franchising can come with its own hurdles, Maudsley will face a different kind soon: water obstacles. In preparation for the Rough Runner assault course, the Little Voices founder has been running and boxing – all while helping to onboard new team members. With her jam-packed schedule in mind, she’s been considering the idea of work-life balance this month.

Claire Robinson

Fresh from an idyllic holiday on the island of Rhodes in southeastern Greece with a pal, the Extra Help managing director got to thinking about the nature of friendship and how to go about setting up a franchise with somebody you’re close to. With experience in mixing friendship with business herself, in this issue Robinson doles out advice on how to make it work for both parties.

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SINCE 1994

Your existing skills could be the answer

Looking to escape the corporate world? Many of our franchisees decided to leave employment behind and use their existing skills to build a better lifestyle and a future for themselves. Our franchisees come from all walks of life, each with varying knowledge and experience. We find this makes us a stronger network because it allows you to draw on their knowledge to fill in your skill gaps. Out network of 200+ consultants is waiting for you… Auditel is the UK’s pioneer of strategic cost management. We assist and educate our clients to make smarter buying and management decisions, leading to business longevity and growth. Our franchisees become invaluable, outsourced board level members of the companies they serve. The Auditel franchise is ideal for professionals who: Have previous business management experience Possess a strong desire to work for themselves Are ambitious and motivated to build a profitable business Have strong business development and negotiation skills Recognised the combined skillset and knowledge of the network to be a large asset to achieving success

Dean Cooper

Auditel gives you the opportunity to transfer your existing skills into your own business and something you can enjoy doing whilst reaping the rewards of your success. If you’re ready to take the leap, we’re ready to hear from you! If you’d like to learn more about our award-winning training programme, book onto a forthcoming Discovery Day and meet some of the training team.

“I joined Auditel to take control and be responsible for my earnings. I wanted to do something similar to my previous career but far enough removed for it to be different.” Franchisee since 2014

http://auditelfranchise.co.uk

0800 583 3355

recruitment@auditel.co.uk ARCM001

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NEWS A vote of confidence We’ve recently passed the 100-day mark since the EU referendum. And while the markets were jittery at first, they have somewhat steadied and franchises appear to be taking the vote in their stride. One franchise, at least, has put the worries aside to secure a significant pot of funding. Franchise Brands, a group of multi-brand franchisors with a network spread across 12 countries, plans to expand following a successful AIM listing on August 5 that raised £2.9m. Stephen Hemsley, executive chairman at Franchise Brands, said: “Even in the immediate aftermath of the Brexit vote, funds were – and still are – available to quality companies with attractive growth stories. The vote has not changed our view that there are some good opportunities for measured expansion within the franchise industry,” he said. Onwards and upwards.

Back to school to business management, financial know-how and legal issues. Pip Wilkins, CEO of the bfa, said: “Anyone who is considering starting a franchise should be taking this course as an integral part of their research. It costs nothing, is jargon-free and will help them stand out as businessaware and ready to hit the ground running in their new venture.” Sounds like a grade A opportunity to us.

The best and brightest from the franchising world gathered in Birmingham to recognise the achievements of Britain’s top franchisees, who were named at the bfa 2016 HSBC Franchisee of the Year Awards. The coveted Franchisee of the Year gong went to Adam Holmes, Nathan Holmes and Andrew Blackhurst of Revive!, the car repair company. Other winners included Metro Rod franchisees Tricia Craig, who won in the Female Franchisee of the Year category and Steve Brown, franchisee of Rosemary Bookkeeping, who was crowned Olderpreneur Franchisee of the Year. Wilkins Chimney Sweep came out on top in the Microbusiness Franchisee of the Year category. With winners coming from all walks of life, the ceremony showed that whatever your age, gender or business size, there’s nothing stopping you from reaching dizzying heights.

Coconut Creatives - Smart franchisee recruitment October 11 Yew Lodge Hotel, Derby, DE74 2DF

EWIF East Regional Meeting October 18 Birketts LLP, 22 Station Road, Cambridge, CB1 2JD

Coconut Creatives - How to motivate your franchisees November 9 Yew Lodge Hotel, Kegworth, Derbyshire, DE74 2DF

Coconut Creatives - How to market your franchise October 11-12 Yew Lodge Hotel, Derby, DE74 2DF

EWIF South Regional Meeting November 1 Robert Denholm House, South Nutfield, Redhill, Surrey, RH1 4HW

bfa - Women in Franchising November 17 Wokefield Park, Goodboys Lane, Mortimer, Reading, RG7 3AE

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

October 2016 | elitefranchise

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WORDS: MARIA BARR

Events

Whether you’re brand new to franchising and feeling your way around or struggling in some specific areas, there’s a lot to learn. But the bfa is hoping to make upskilling easier. The organisation has teamed up with Lloyds Bank to offer a new online – and free – course: the Prospect Franchisee Certificate. The video-based, 13-part course delves into everything from evaluating franchise opportunities

The winners take it all

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ADVERTISING FEATURE

A high concept For a working life you will really enjoy, give Concept Building Solutions a try

“F

ind something you love to do and you’ll never have to work a day in your life”. It’s a phrase everyone knows and it has been attributed to different people. But regardless of who coined the phrase, the meaning remains the same. It’s also what Concept looks for in a franchisee: the desire to enjoy working life. As a provider of a free representation service to building

insurance policyholders, it is imperative that franchisees have a passion for ensuring the policyholder receives the best representation possible and is treated fairly during the claim process. This is probably why Concept franchisees really enjoy what they do. Every day, they are engaged in removing stressful situations for their clients. They also ensure that the policyholder’s home or business premises are restored to pre-loss conditions as soon as possible and with minimal disruption to their busy lives. Of course, you cannot live on enjoyment and happiness alone – making money does help. Enjoying what you do and providing a muchneeded service while making a six-figure income is a great recipe. It’s

why the Concept Building Solutions franchise has continued to grow and prosper for the last 13 years. The Concept franchise is costed at £27,995 plus vat and can be funded via startup loans of up to £25,000 over five years at six percent unsecured. It is a complete turnkey franchise package. The highest level of training, mentoring and support is provided over a six-month period to ensure success. Due to this high level of training and support, experience in building or insurance is not a necessity. However, a passion for customer service and the ability to communicate effectively are. “…the Concept Building Solutions franchise has continued to grow and prosper over the last 13 years”

Insurance claims management & building repair

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LOOK FORWARD TO WHAT YOU DO EVERY DAY SO DON’T REALLY FEEL AS IF YOU ARE WORKING FOR A LIVING AT ALL? GET DIRECT FINANCIAL REWARD OVER SIX FIGURES FOR THE EFFORT YOU PUT IN? WORK THE HOURS THAT SUIT YOU BEST AND CAN OPERATE FROM HOME, NO MORE COMMUTING?

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HAVE AN IDEAL WORK/LIFE BALANCE? WANT ALL THE TRAINING OVER A SIX MONTH PERIOD THAT YOU NEED TO ENSURE YOUR SUCCESS? WANT TO WORK FOR YOURSELF BUT NOT BY YOURSELF, HAVE ALL THE SUPPORT YOU NEED WHEN YOU NEED IT?

WORK FROM DAY ONE WITH THE BACKING OF 14 YEARS OF SUCCESSFUL TRADING BEHIND YOU? WANT TO PROVIDE A FREE SERVICE IN A RECESSION PROOF SECTOR? WORK IN THE MARKET SECTOR OF YOUR CHOICE? NEVER FACE THE RISK OF REDUNDANCY?

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elitefranchise | October 2016

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WELL COULD YOU ANSWER YES TO MOST OF THE QUESTIONS? YOU COULD IF YOU WERE A CONCEPT BUILDING SOLUTIONS FRANCHISEE CONC003

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Pip Wilkins, chief executive, bfa

Why women are a natural fit for franchising The only barrier stopping women from making a killing in franchising is a lack of confidence. When it comes to innate ability, they tick all the boxes

I’ve seen plenty of changes in the years I’ve been working in franchising and one of the most welcome is that so many strong and dynamic women have come into the sector at both the franchisee and franchisor levels. Franchising was once seen as a man’s world but that’s certainly not the case anymore. And why should it be? Women tend to have the skills and personality traits needed to be a successful franchisee, such as good organisation skills, an eye for detail and the capacity to prioritise. Many women have great communication skills and are equipped with emotional intelligence – great traits to have in any franchise business. Women tend to be intuitive and socially adept, meaning they can talk through issues and seek solutions in an effective way. It also means we’re more likely to ask for help and tap into the support available from the franchisor and the network of franchisees. We like expanding our horizons by learning and sharing information.

As good communicators, we’re also good at building lasting relationships and maintaining them, which plays a key role in building a good business from both an employee and customer relationship perspective. Developing longer term relationships with customers and staff creates loyalty and brings more stability to a business. There’s a common perception that women are more risk averse than men and at least one study by researchers Roberto Mura, Maria Marchica and Mara Faccio found this to be true at the boardroom level. Being cautious when it comes to risk-taking has both its advantages and disadvantages. From a franchising perspective, being more conservative with your finances and having a willingness to start small and grow slowly can often be the wisest course of action. So what are the barriers women in particular can come up against? It seems low self-confidence is the biggest obstacle. So maybe we as women need to power up our self-esteem, step out of our comfort zone a little more often and trust the fact that we are competent, have a plan and will succeed. There are a number of attractive reasons to join the franchising industry, including the great sense of community, the opportunity to make your mark in a growing sector and a chance to own and expand a business with no glass ceiling. If you want, you can be the top dog. I believe that what makes franchising a good fit for women is similar to what makes it a good fit for anyone. But franchising is no longer just a man’s world. More and more women are finding a home in the franchising world and that’s a welcome trend. October 2016 | elitefranchise

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TAXA001 04/04/2016 13:36


Claire Robinson, managing director, Extra Help

Starting a business with a buddy Making sure you don’t turn your friend into a frenemy can be tough when starting a business with someone you care about They say you should never mix business with pleasure but what happens when you decide to go into business with a friend? Starting your own venture can be daunting, so it helps to do it with someone you trust, admire and enjoy being around. That said, it’s important to put certain measures in place to protect your friendship – as well as your own interests. The first step has to be making sure that the structure of the company is secure. Get a solicitor involved to ensure your contracts are watertight and that everyone is clear on the details of the business. This could avoid serious problems should anything go wrong. You should agree on the long-term objectives and values of your company. Just because you agree on ice-cream flavours and movies doesn’t necessarily mean you’ll have the same vision. For example, if one of you wants a lifestyle brand while the other has plans to take the business in a completely different direction, it’s never going to work. To make sure you’re on the same page, agree on a list of core values and try to stick to them.

Clearly defining your roles and responsibilities from the start will also prevent misunderstandings in the long term. It might seem natural to help your friend out if they appear to be struggling but it’s vital that each of you is responsible for different areas of the business so you don’t double up on tasks and get in each other’s way. You need to leave your egos aside and allocate roles objectively based on each other’s strengths and weaknesses. Once you’ve done that, make sure you stick to them. Don’t be scared to tell each other to back off if you find your functions overlapping. It’s equally important to put on your business hat and speak to each other frankly if there’s something bothering you or, on the flip side, be able to take constructive criticism from your friend. The money conversation is also one that many find awkward but being upfront will prevent tension from building up and bubbling over. Make sure you’re clear about how much money each of you is contributing, what you’ll take out and the amount you’ll invest in growth. Often we don’t want to upset friends by being confrontational but there are times when you need to put your friendship to one side and focus on the business. Starting a venture together is a big decision but as long as you have the right structure, working with someone you have a close relationship with can give both of you the confidence and support to take the big step into entrepreneurship. October 2016 | elitefranchise

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

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Fully sign-written van and mobile showroom

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

For more information call: +45 87244700 or 07769 882775 email mobile.workwear@mascot.dk or visit www.mobileworkwear.com MASC001 Mascot DPS Mar16.indd 2

04/04/2016 13:32


DANNY HANLON

Whether it’s uprooting his life and moving to the other side of the world or giving his franchise a facelift, Danny Hanlon is a man that doesn’t shy away from embracing change

CONSTANT

TRANSFORMATION BY JOSH RUSSELL / PHOTOGRAPHY BY NATALIE SEERY

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DANNY HANLON

B

uilding an innovative global franchise is a process of perpetual reinvention. Whether it’s expanding your product line or refreshing your brand, the best franchises are the ones that can move with the times. Having helped Trend Transformations conquer continents and find a whole new identity, there are few better placed than Danny Hanlon, the franchise’s chief operating officer, to understand why the most successful franchises are those that embrace change Having come from a military family, Hanlon is certainly no stranger to life on the move: when he was a child, his father’s position as a captain in the Royal Electrical Mechanical Engineers saw him moving every two years and changing schools nine times. “It was always a challenge,” he admits. “Just when you’ve made a new group of friends, you move and you’ve got to find a new one.” By the time Hanlon reached his teenage years, his father had left the army so the family settled in Perth in Western Australia. And this gave Hanlon some time to think about his future career. “I always wanted to be a carpenter,” he says. “My grandfather had done it years before and I had a passion for it.” By the time Hanlon graduated, he had already started to look at apprenticeships that would allow him to work with wood. “I got a position as a cabinet maker with Associated Shopfitters, the largest shopfitting firm in Perth,” he says. During his second year on the apprenticeship he was brought into an office role, something that saw him measuring sites, liaising with architects and working side-by-side with the site foreman. It was while doing this that he began to see there was a big disconnect between those on the floor and management. “It was quite an easy thing to fix: you just had to get people together, get them communicating and build a team,” he says. “But while I tried my best to change things, it just didn’t come together.” In light of this, Hanlon began to look for opportunities elsewhere and

came across a job ad for a fledgling kitchen resurfacing business founded by childhood friends Colin Mackenzie and Bob Smith, which at the time was called Granite Transformations. “They had wanted to start a business together and the home-remodelling industry was really taking off in the Australian market,” Hanlon says. Coming across an agglomerate floor tile, the duo realised that if they could get the material produced in large enough sizes, it would offer them a fast and attractive way to renovate customers’ kitchen surfaces without doing a full refit. “They could apply an engineered stone made up of either granite, quartz or porcelain directly over existing kitchen counters,” Hanlon explains. “Rather than customers having to go through the hassle of a complete tear out, they could come in and renovate the worktop in one day.” When Hanlon turned up for an interview in a premises that was “less like a showroom and more like a shed”, Mackenzie and Smith explained that they wanted him to handle the installation process but they could only afford to take him on as a subcontractor. Whilst this meant he would have to front A$10,000 to buy the tools and van he needed, the pair’s ambition won him over. “They said: ‘Once we’ve proved the model works here, we’re going to franchise it and take it to America and Europe’,” Hanlon recalls. “‘If you join us right now, you’ll have the opportunity to grow with the business.’” There was only one thing that gave Hanlon pause. “Behind them they had the very first operation board, which is where we schedule all of our work, and they only had two jobs on it,” he says. After he expressed his scepticism about how the founders planned to bring in business, they showed him a cabinet they wanted him to resurface with the material, which they planned to use for a before-and-after display at a local shopping mall to drum up customers. Hanlon needn’t have worried. “We were three or four people deep the whole October 2016 | elitefranchise

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DANNY HANLON

If you can see things from a franchisee’s perspective, it always makes you a better franchisor

two days and got over 100 enquiries after that first display,” he says. “From that point on, we knew we were onto something very good.” Once the leads began rolling in, the next step was getting to work on the first Trend Transformations showroom. “We made a lot of mistakes, as you do when you’re starting out, but we also learnt an awful lot,” Hanlon says. Not only did the 12 months they worked on the pilot store help the founders document their processes and put together a franchise manual but Hanlon feels that running their own store gave the trio valuable insight into the needs and concerns of their franchisees. “It meant we had walked in their shoes and knew what they were going through,” he says. “If you can see things from a franchisee’s perspective, it always makes you a better franchisor.” Before long, Trend Transformations was on the hunt for franchisees, something that didn’t take long given the buzz surrounding the brand. “We started to get a lot of interest from people that had a kitchen done and then thought ‘hang on: this is a good business concept’,” Hanlon says. But while harnessing this word of mouth helped Trend Transformations to quickly begin to sign franchisees, it was when it featured on Our House, an Australian home-remodelling TV show, that the franchise really began to take off across the country. “That 22

gave our concept nationwide coverage,” he says. “From that point on, our growth reached another level.” Given that much of Australia’s population is concentrated on the east coast, by this stage Smith had made the move to Sydney and Mackenzie soon followed. “As soon as that TV programme aired, they both needed to be there to manage things because the growth was unreal,” Hanlon says. For a time, Hanlon acted as general manager for the Perth store, helping it to grow to A$1.8m in revenue, before joining Trend Transformations’ founders in Sydney as national technical operating manager. “I acted in a training and support capacity, helping the new franchisees that we were starting to recruit and setting all of the new locations up,” he says. Eventually the time was right for the franchise to expand overseas, meaning Hanlon spent most of 2001 jetting between Sydney and LA, helping to open new Trend Transformations showrooms Stateside. “That was a fairly frustrating year,” he says. “What would happen is you’d be there for a month, implement the processes, hire the people, it would just start working well andq by the time you next visited things would be off track.” Because of this, Hanlon urged Smith and Mackenzie to adopt a new approach when they entered their next market. “I told them the way to do it would be for one of us to relocate permanently,” he says. “And that’s how I ended up coming to the UK in 2004.” Most would find uprooting their whole life and moving to the other side of the world intimidating but Hanlon relished the opportunity, something he attributes to his military upbringing. “Naturally I quite enjoy upheaval, moving and the challenge of a new place,” says Hanlon. “So for me it was a very easy decision to just pack up and go.” And there was plenty for Hanlon to get his teeth into when he landed in Blighty. After a successful pilot down in Tunbridge

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Wells, it wasn’t long before prospective franchisees were beating a path to Trend Transformations’ door. “The first ten franchisees that joined us, at least half had purchased worktops from us,” Hanlon says. “They’d been customers, loved the experience and then decided to buy the business.” But even though the franchise was spoiled for choice in terms of candidates, it still had very specific criteria for the kind of franchisees it actually wanted to take on. “We were looking for people who were open to change,” he says. “Because over the 20 years of operating in this business, we have gone through a significant transformation.” An ability to embrace change certainly stood Hanlon in good stead when translating Trend Transformations’ offering for the British public. “That’s one of the things I really enjoyed about coming to the UK,” he says. “It was all about being

curious, learning and understanding how to adapt our franchise model to make it work in a different environment.” While getting to grips with a new market is always tricky, Hanlon knew there were people he could turn to for help: the franchisees on the ground. “Those guys at the coalface understand what it takes to make a business successful,” he says. “They’re in customers’ homes every day and understand what marketing works best.” But Trend Transformations’ model isn’t the only thing that has changed with time: its range of services has also evolved. With time it has expanded into both cabinet refacing and bathroom refits, something that has been inspired its customers. “This has all been consumer-led,” says Hanlon. “They say ‘you’ve done a great job of our kitchen: can we just apply this material directly over our

Naturally I quite enjoy upheaval, moving and the challenge of a new place October 2016 | elitefranchise

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tiles and renovate our bathrooms?’” On top of this, the franchise has also been steadily expanding its product lines and pioneering new techniques to produce eye-catching finishes for its customers. “Our latest range uses a process called sublimation to imprint patterns into the material, which is something else all together,” Hanlon says. “That opens up a whole new avenue.” And as a result of this innovative new product line, it’s not just the man in the street who is sitting up and taking notice. Increasing numbers of highprofile designers and celebrities have been drawn to Trend Transformations’ services, whether that’s Linda Barker, Sarah Beeny or Sir Sterling Moss. Additionally, as with its appearance on Our House in Australia, featuring on UK TV shows like Beeny’s Restoration Nightmare and Double Your House For Half The Money has helped Trend Transformations reach new audiences across the country. “These projects bring a great deal of national exposure and a lot of credibility,” Hanlon says. “Doing those shows has been a key strategic ingredient in our marketing mix.” However, there was one thing that was holding the flourishing franchise back. “Granite Transformations as a name was somewhat pigeonholing us,” says Hanlon. “When people think of granite, they only think of worktops and 24

our business is so much more than that.” In light of this, the franchise hired the services of Future Brand, the brand strategy and design consultancy firm owned by global ad agency McCann Erickson. With the team’s help, the company has spent the last two years rebranding as Trend Transformations and redesigning its showrooms, with the first UK location having opened to the public in Peterborough this September. “The new look and feel of the showrooms is very fresh and it’s opening up a whole Over the 20 years other demographic for of operating in us,” he says. “With us having a hipper, funkier this business, look, we’re starting to we have gone see a younger customer through a great coming into our stores.” Without a doubt this deal of change rebrand has paid off for Trend Transformations, helping it to kickstart a new phase of its growth. Currently the franchise has 200 locations worldwide and 28 in the UK but Hanlon emphasises this it just the beginning. “We’ll add another 25 franchise units this year and probably close to 30 to 40 next year,” he says. “So it’s growing very quickly.” Longer term he is focused on the franchise’s Unite 2020 plan, which aims to make franchisees 50% more profitable, up each store’s revenue to £1.5m, increase franchisee satisfaction and build brand value by 2020, with an eye to securing 500 franchisees by 2025. “It takes the things that are the most important to our franchisees and combines them with the enduring vision we have for the business,” he says. Whilst these may sound like daunting targets, Hanlon is no stranger to taking on challenges. A keen open-water swimmer, he recently attempted to swim the Cook Strait between the north and south isles of New Zealand. “We were out there nine hours attempting this,” he says. “We got within probably about four kilometres of the other end when the weather turned.” Not one to be dissuaded, he immediately set his next objective: swimming the Gibraltar Strait. “My aim is to continue to do one of these mad open-water challenges every year,” he says. As you can probably tell, Hanlon is incredibly goal-orientated. “I’m a big believer in setting goals: I promote this with all of our staff and franchisees,” he says. And whilst his role has changed insurmountably since he first joined the brand as a contractor two decades ago, this characteristic means there could be no one better to point the way for the next two. “My role is to motivate, inspire and set the direction,” he says. “I’m here to see us get those 500 franchisees.”

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BIO-RITE Working with the NHS

FRANCHISE OPPORTUNITY BENEFITS: • A BFA provisional member • 40 years experience in infection control • Providing services to the NHS, Local Authorities, Care and Nursing Homes and other institutions where infections are a threat • Job security, a growing market and high income potential • Large and exclusive territory • Comprehensive training and full business support

THE MARK OF QUALITY IN INFECTION PREVENTION AND CONTROL

Call 01420 549 659 | franchising@bio-rite.com

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Nigel Toplis, managing director, The Bardon Group

Putting a price on your franchise Fixing on the fees for your franchise offering isn’t easy. But it’s one of the most important decisions you can make the launch of the franchisee. The main When you bring a franchise objective isn’t making money out of to market the first thing you the initial franchise package but you need to consider is ‘what do I charge?’ do need to be able to cover your costs. Given that every situation and every The second thing you need to do is business is different, there is no set determine the level of support you formula for setting the sales price, nor anticipate providing the royalty percentage and then set your of a franchise. price accordingly. The However, there are Fixed fees franchisor is there to some unwritten rules are unusual provide both guidance you can follow. and not really and advice but also The first rule is liked by the training, marketing that you must be tools, programmes, transparent. It’s only franchise collateral, procurement, right that a prospective community nor plus technical and sales franchisee questions by the bfa support throughout the you on what is included period the franchisee is in the franchise in the franchise. To this package cost and what end, franchisors must charge royalties they’re going to get for their ongoing commensurate with the support and royalties. To this end, you need to set service to be provided. out a comprehensive breakdown of When it comes to how you actually your franchise set-up costs. From my structure the fees there are generally point of view, the franchise package three methods available to you: should cover the costs involved in product mark-up, fixed fees or a developing the brand and the system, percentage of turnover. plus the cost of training and marketing

A mark-up is used primarily in manufacturing businesses that make products and sell these to the franchisee. Here the franchisor makes the bulk of their income from the mark-up charged. Meanwhile, fixed fees are unusual and not really liked by the franchise community nor by the bfa but can be found in cashbased businesses. This is where a fixed monthly fee is charged irrespective of turnover or profit. Perhaps the most popular model in the franchise world, percentages of turnover provides what most consider to be the fairest arrangement, ensuring an incentive and reward for both franchisor and franchisee alike. Some say that setting a price for a franchise is both an art and a science. But it’s more a function of common sense and the ‘reasonableness test’ – that is, does it feel right? Do I think it is fair? Can we both make money out of the arrangement? If the answer to these questions is ‘yes’, then you have probably got it about right. October 2016 | elitefranchise

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ADVERTISING FEATURE

A touch of gold

own successful Goldgenie Certified Professional business by offering the attractive gold-plating service to clients. We provide you with the tools, the roadmap and the guidance to set up a proven business in your local area. This unique opportunity means that there are no franchise fees, no Having proven itself as a shining light royalties or fixed overheads once you in the world of franchising, a business become a franchisee. As a partner you will receive advice, guidance and opportunity with Goldgenie is surely one sub-contracted business leads directly not to be missed from them when available. As a formal Goldgenie Certified Professional, you are supplied with oldgenie has established itself as the world’s a ‘business in a box’ which will premier customisation brand with over 18 include your plug-in-and-play gold years of experience and a high calibre of plating system and everything that clientele from celebrities to blue-chip organisations you could possibly need – including Lexus, Honda, Toyota and Nokia, including: personalised Blackberry and HTC.. business stationery, marketing Driven by award-winning entrepreneur Laban We provide you materials and high resolution Roomes, who founded the business in 1995 and with the tools, the images for your own secured investment from James Caan on BBC’s marketing needs, so that Dragons’ Den, the business has seen exponential roadmap and the growth and now seeks motivated entrepreneurial guidance to set up you can get started building your business straight away. individuals to grow the brand around the world. a proven business You will also have an affiliate The Goldgenie Business Opportunity will allow in your local area link that will give you any ambitious individual to establish and grow their commissions from sales off their website product range. With partners now working boasting clients including luxury car dealerships, yacht owners, jewellery stores, trophy outlets, manufacturers, churches and home and hotel owners, how you build your business is limited only by your imagination. Budding entrepreneurs will have complete flexibility and freedom in how they run their business. Not only will you be benefitting from over 18 years of experience - with access to a dedicated team of specialists to assist you with everything you need to start your business - you’ll be hitting the ground running.

G

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Tony Bowman, managing director, etyres

Small things lead to big wins In business it’s often tempting to focus on the big ambitious projects. But it’s important to remember that small efforts really add up In the sporting world, they talk about marginal gains. In business, we often talk about incremental changes. Each expression points to achieving success in a big way through the implementation of small initiatives. For instance, just how did Team GB’s Olympic champions manage to shave tenths of seconds off world records? In cycling much has been made of the tweaking of equipment, tactics and even clothing in order to achieve outstanding results. So how can we adapt and apply the same formula to our businesses? To begin with, attracting new customers is anywhere from five to 25 times more expensive than retaining existing ones, depending on which study you read and which industry you’re in. This means customer satisfaction has to be a priority in developing a thriving, sustainable brand. Another way to get big returns from a smalltime investment is actively inviting your customers to post feedback on the good service they’ve received. This takes seconds at the end of each job but can have a positive impact on future sales because it’s a powerful advertising tool. Just You could even consider giving a member of the because something is team responsibility for easy doesn’t responding to and dealing with customer service issues mean it’s to ensure consistency. not worth Negotiate bulk buying the effort discounts with all your

suppliers and seek ways to speed up your supply chain. A good example of this is demonstrated in our business. We offer a same-day fitting service so it’s helpful to establish a variety of collection points where our franchise owners can pick up tyres from our suppliers for last minute orders, instead of having to return to base or turn down work. Other cost cutting measures that only take a bit of time to organise but will almost certainly boost your bottom line include: going paperless; changing insurance providers; shopping around for better deals on essentials such as printing and reviewing standing orders that have been in place for years but aren’t earning their money. Some of these examples are just basic common sense – but just because something is easy doesn’t mean it’s not worth the effort. Champion cyclist Laura Trott, who became the most decorated British female Olympian of all time in Rio this summer, revealed that focusing on pushing her belly out when breathing in helped steady her nerves before a race. Meanwhile, back in the 1980s, American Airlines famously removed a single, insignificant olive from every salad served to passengers and saved the company $40,000 a year. So don’t be afraid to think big and always remember: little things can add up to make a massive difference. October 2016 | elitefranchise

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Pearson Anderson

The second

coming

Having gone bankrupt during the recession, Amit Kainth knows a thing or two about picking himself up. But it was a neardeath experience that showed him how to take Pearson Anderson to the next level BY ERIC JOHANSSON

I

n 2010, Amit Kainth was rushed to the hospital. The stress from seeing his franchise go under, becoming personally bankrupt and attempting to launch a second venture had caught up with him and left him bleeding internally. “I nearly lost my life,” says Kainth. But instead of facing the reaper, he found himself leaving the hospital with a new outlook on life that’s enabled him to grow the recruitment franchise Pearson Anderson to the point where it will be ready to float in 2017. Not only this but it enabled him to find happiness, something that had eluded him since his childhood. Given that his father ran a company manufacturing knitwear for Marks & Spencer and other international brands, it’s safe to say that when Kainth was growing up inspiration for his future entrepreneurial endeavours was close at hand. “I loved coming with him to work,” he says. But while he picked up a trick or two observing his father in action, Kainth’s formal business education started the day his dad urged him to apply for an undergrad course in accountancy at the University of Sheffield. However, Kainth wasn’t exactly thrilled. “I had no interest in this degree whatsoever but had to do what my father told me,” he says.

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Kainth senior would probably have been less than pleased to find out that while he was bankrolling his son’s education, Kainth junior was spending the cash on things other than his required reading lists. “I basically had a three-year-long party,” he says. Given Kainth’s lacklustre interest in his studies, it’s hardly surprising he finished with a third, something his father didn’t take too well. “He told me that I wasn’t welcome home until I went back to Sheffield and got myself a proper degree,” he says. Swapping accountancy for a financial services postgrad, Kainth graduated with good grades and was hoping to fulfil his childhood dream of working with his father. “But Dad said I couldn’t because my brother was already working with him,” he says. “I told him it was crazy and that I could help grow the business but he wanted me to find a job elsewhere.” Shaking off the disappointment, Kainth secured a job as a premium assistant at NatWest but while he was happy having found a job, he was less satisfied with the £10,000 a year salary. “My dad gave me more money when I was at uni,” he says. With that in mind, it shouldn’t shock anyone that he swapped employers when HSBC offered him a £30,000 pay cheque and pledged to further educate him. Despite this, Kainth still wasn’t content. “I was making good money but not good enough,” he says. Inspired by his friends working in franchising, the budding entrepreneur decided to buy a franchise from CNA International, the recruitment agency. While the initial meeting with its CEO Albert Wilde had gone well, Kainth still faced the challenge of raising £50,000 to set up and run the business. Having failed to get a loan

At 25 I was driving a Porsche and at 27 I drove an Aston Martin from the bank, he asked his parents to spot him the money but once again found himself being rejected by his father, who wanted him to remain in banking. While he had previously obeyed his father, this time Kainth didn’t cave. “It took a few months of persuasion but eventually he gave in,” he says. Having secured the funding, he set up the business and by supplying candidates to banks and financial institutions he quickly became one of CNA International’s most successful franchisees. “At 25 I was driving a Porsche and at 27 I drove an Aston Martin,” he says. However, even

though he was finally earning a lot of money, Kainth still felt something was missing. “I was never happy,” he says. “I was always chasing, chasing, chasing. It was just a rat race.” And things were about to get worse. When the economy went belly up in 2008 and financial institutions like Lehman Brothers started faltering, suppliers like Kainth were caught in the fallout. In 2009, he went bankrupt. “I lost everything I had built up,” he said. With no income, a newborn baby at home and a mortgage to pay off, Kainth was left with the choice of finding employment elsewhere or starting again from scratch. A chance meeting at a party made him opt for the latter. Speaking with a friend of the family, Kainth asked how the financial downturn had affected him and received the answer “not one bit”. Intrigued, he probed the friend on October 2016 | elitefranchise

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how his business had escaped the downturn unscathed. “He said he was a pharmacist and that people would always need their medicine,” he says. The conversation inspired Kainth to launch Pearson Anderson, a recruitment business catering to the pharmacy, nursing and caring sectors, in 2009. The name was inspired by a book by the former Dragons’ Den investor James Caan, the founder of Alexander Mann, the recruitment agency. Following the Dragon’s lead, Kainth chose the name as he liked the sound rather than basing it on a real person. However, the stress of having gone bankrupt, becoming a father and launching his second enterprise eventually caught up with him, leading to his hospitalisation in 2010. Even though he was eventually allowed to leave, Kainth was left heavily medicated on steroids and only allowed to work for two hours a day. “I was so angry and I wanted answers for why all these bad things had happened,” says Kainth.

Eventually, he found his answers whilst reading the book of Veda, the central scripture of Hinduism. “As I read it, it started to make sense,” says Kainth. Inspired by what he’d found, he devoured the Bible, the Qur’an and every other spiritual text he could lay his hands on. “I realised that, ultimately, they were saying the same thing,” says Kainth. Distilling his revelation into the book The Gift: The Seven Laws of Success, he set out to provide a gospel for entrepreneurs in pursuit of happiness. Not one to rest on his laurels, he also launched the Amit Kainth Show, a TV program broadcasted for 33 episodes on Star Plus where he interviewed other people who’d had a spiritual awakening. A second season is planned to start filming in the US next year. Despite his poor health in 2010, Kainth managed to lead Pearson Anderson from making its first £1m to closing in on a £10m turnover. Last year, the company made a second big move by inadvertently signing up its first franchisee. It started with Jon Smith, chairman at CNA International, asking if Kainth could help train some of his company’s new franchisees. However, as the onboarding of the new franchise owners was underway, one of them developed buyer’s regret. “I felt guilty because he had already spent the money, so I told him I’d give him a Pearson Anderson franchise for free,” says Kainth. That’s how, almost by accident, the company launched its first franchise in Reddish in 2015. “In one year, he was able to turn over more than a quarter of a million,” he says. “When we saw that the model worked, we decided to expand it.” New franchisees are able to tap into the company’s network of clients and get support from other franchisees, while the head-office team is ready to help them with everything from background checks to how to grow their business. However, this isn’t just a one-way street – in return, Kainth expects them to work hard. “You can’t come in and expect this to be an easy ride,” he says. Having organically grown to five franchisees in one year, Pearson Anderson is now a member of the bfa and is looking to expand the network even further. “It would be good to have about 30 franchisees,” he says. Given that the business is also looking to IPO in 2017, it’s safe to say that six years after his near-death experience, Kainth is well on his way to achieving entrepreneurial success once again. “But this time I’m happier, at peace and more content,” he concludes.

You can’t come in and expect this to be an easy ride

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ADVERTISING FEATURE

Now Accepting New Franchise Enquiries It’s unusual for a franchise to freeze all recruitment and invest vast sums of money in future proofing their business, but that is exactly what Shuttercraft have done. They took the view that by investing now they would not only maintain their market dominance but accelerate ahead of the pack to take advantage of a market that is growing by 30% per annum. The market for interior window shutters has exploded over the last five years and this market is yet in its infancy. The demand for shutters has increased due to the increased awareness and desire for a clean, modern and allergy free alternative to traditional window coverings. Shuttercraft franchisees are not physically installing shutters but focuses on customer experience as their USP. “By getting the customer experience right we ensure a strong and secure sales pipeline” Shuttercraft has done a full brand refresh and developed new and exciting consumer websites, taken on one of the world’s best CRM systems and hired key staff to reinforce our support team. Add to this our advanced business coaching, mentoring, technical support and a bespoke business software programme, Shuttercraft franchisees enjoy a level of support and nurturing that puts the company in amongst the best in the franchise industry. About the business There is no doubt that plantation shutters have a powerful “wow” effect on everyone that sees them. This is evidenced by the fact that Shuttercraft franchisees enjoy an incredibly high level of repeat and referral business which helps keep the marketing costs lower than other industries. Because of the popularity of their

It is not unusual for us to see a whole chain of referrals. Some of our franchisees have reported getting 6 clients from a single referrer Sean Goldsmith, Franchise Manager

product, Shuttercraft’s franchisees ‘consult’ rather than sell. “Our customers are intelligent and savvy and have done a ton of research prior to seeing a Shuttercraft specialist” says Sean Goldsmith, franchise manager at Shuttercraft. “This means that we can really provide value to our client by giving them sound advice on which product would best suit the window”. What about the product? Shuttercraft is a Licensed Master Partner of S:CRAFT and only sell S:CRAFT shutters and blinds as they are the best in the market in terms of craftsmanship and engineering. Their shutters and blinds, installed with care by a Shuttercraft specialist, are from sustainable plantations and a manufacturing facility dedicated to reducing their carbon footprint.

Who is this franchise suited to? Shuttercraft franchisees have come from a variety of backgrounds but this management opportunity is really suited to individuals who want to rapidly grow a business with revenues up to £500,000. Given their ambitious targets, their approach to business is calm, relaxed and confident. By combining a high quality product with motivated franchisees and a nationally trusted brand, Shuttercraft as a company is set to make big waves in the industry. To find out more contact Sean Goldsmith directly on 01962 280 505 or email sean@shuttercraft.co.uk

October 2016 | elitefranchise

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Franchise consultants

Consultants:

are you being

Bringing in the big guns can shake things up and inject fresh thinking into your franchise but can a consultant ever really know your business like you do?

served?

BY MARIA BARR

N

ow’s certainly a good time to be a consultant. Research by Adzuna, the recruitment portal, shows that the average consultant salary is up by 8.9% compared to last year while there are 10% more consultant jobs being advertised than a year ago, as businesses look to external parties to help steer them through uncertain post-Brexit times. Some people, perhaps uncharitably, say management consultants have a tendency to “sell you a watch, then tell you the time”. But the role of a franchise consultant is slightly different. Not to be confused with a franchise broker, a franchise consultant can provide strategic advice and sometimes hands-on help to a business at a range of stages in its development. At their best, a franchise consultant can help connect franchisors with the right people in a new market, ask probing questions like only someone outside the business can or even craft documentation on your behalf. At their worst, they’ll offer a cookie-cutter approach and bill you to the high heavens.

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Franchise consultants

Franchising 101 The most common stage a consultant is usually brought on board is in the very early days, when a business owner is first considering franchising. They may know their business inside out but franchising is a beast of its own. To newbies, the entire concept is still very alien and the idea of assembling a franchise manual can be daunting, explains Suzie McCafferty, managing director of Platinum Wave, the franchise consultancy. Her clients are often looking for a beginner’s guide and can sometimes even muddle up terms like licensing and franchising. “Franchisors underestimate just how much work it takes to become franchise-ready and jobs like preparing the operations manual is a

Anything that looks like a failure of management is a no go for franchisors Bill Pegram, The Franchising Centre

challenge for owners too busy running their business to get the strategy down on paper,” she says. This of courses makes business owners very vulnerable, as Cheryl White, managing director at Apollo Care, the care franchise, found out. Turning to a consultant was a no-brainer when White was first considering franchising and was feeling overwhelmed while doing initial research. “It was a different language to me,” she says. Unfortunately she didn’t have the best experience. Having fobbed off her attempts to see the documentation they were working on, the consultants finally gave White a glimpse five months into the process. And it wasn’t good. “The prospectus was a joke and they’d just guessed when it came to the figures,” she says. The consultants hadn’t sought any input from her or tried to understand what she wanted from the franchise model but had instead just used ready-made templates. They hadn’t even got her company name right. After seeking a second opinion, which confirmed her misgivings, White finished the manual and legal documents herself but regrets the time wasted with a less than reputable consultant. “When I look back now I was so naive,” she says. After take-off The role of the consultant doesn’t end once a franchise has gotten off the ground by any means. Given their industry contacts and know-how, consultants are often asked to help with recruiting the right franchisees or helping a company enter a new market at home or abroad. Going global is particularly complicated and requires careful preparation, says Bill Pegram, director of marketing at The Franchising Centre, the franchise consultancy. “It’s not about just dumping your business in a new country and hoping it works,” he says. Consultants are useful because no franchise network can have in-depth knowledge of all overseas markets: a consultant can prove invaluable, giving insight into legislation, market trends and perhaps even supplying business contacts. They can also help a franchisor check that their business is ready to take the step in the first place and run through process of identifying where and how to approach going global. Paul Thompson, founder of Water Babies, the franchise that offers swimming classes for babies, says looking outside the network is particularly important at this crucial stage because a consultant is able to see things from a different perspective and challenge your assumptions. “When we first started exploring overseas markets to expand into, we assumed that countries like the US and Australia would October 2016 | elitefranchise

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Franchise consultants

A consultant must take time to know that business but they can never know a client’s business as well as the owner can Suzie McCafferty, Platinum Wave

be the natural fit,” he says. “But our consultant challenged that thinking and showed us where the real opportunities lay.” It seems fairly clear that outside opinions are helpful at these key milestones but what about the rest of the time? Consultants also have an ability to shake things up, even when everything seems to be ticking along nicely. It can take someone with an external perspective to help a franchisor spot an opportunity or something that could be done better. “Sometimes they come to me saying ‘I franchised my business a few years ago but I’m a bit stuck,’” says White, who nows runs her own consultancy. In that case, the consultant plays the role of coach and mentor, helping a franchisor work out what their next move should be. But this requires an ability to ask for help and admit that there are things that can be improved upon, which Pegram says franchisors can 36

be reluctant to do as often their egos can get in the way. “They’re afraid I’ll expose a weakness,” he says. When it comes to admitting that their business is not doing as well as it can be or it’s clear they don’t have the expertise or contacts a consultant does, franchisors can be very wary. “Anything that looks like a failure of management is a no-go for franchisors,” he says. But sometimes those tough questions need to be asked. Finding the right fit So how do you get the most from your consultant? Firstly, do your homework on them. White urges franchisors to do their due diligence by checking consultants have previous business experience and getting references, rather than being sucked in by a shiny website and a convincing pitch. Crucial questions to ask include what brands they have taken to market, what their involvement was and how much time they’d be able to dedicate to your business. Equally important is making sure that the chemistry is right and there’s a match in values, adds McCafferty. You also have to be prepared to put the work in to help a consultant to get to grips with your model. “A consultant will take time to get to know that business but they can

never know a client’s business as well as the owner can,” McCafferty says. A mistake franchisors can make is sitting back and expecting the consultant to do too much. And as for White, now that she’s a consultant herself, whenever she is helping someone assemble a manual she sends it to them one section at a time to review. This means that by the time it’s completed there are no surprises. “It’s their business and the documentation has to be personal to them,” she says. So if you can’t remember the last time you spoke to your consultant, you know something’s up. It’s equally important to know when to push back: an open and honest dialogue is best and you don’t have to take a consultant’s advice wholesale. Thompson recalls when Water Babies was venturing into the Middle East and had teamed up with a consultant. At one point, he challenged one particular piece of advice he received on how to enter the market, which resulted in a more robust strategy. There will always be charlatans offering discounted packages and, given the eye-watering costs involved with franchising, it’s easy to understand the draw of a low-cost deal. But, when used well, consultants can be exactly what you need. Even if you didn’t know you needed it. 

elitefranchise | October 2016

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ADVERTISING FEATURE

JOIN THE MAID2CLEAN BRAND EVOLUTION

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nlike a many of the franchise operations available today, the Maid2Clean franchise is less concerned about their own profit margins than we are about making a real difference to the lives of our many franchisees. If you’ve discovered that life is too short to stay a ‘job slave’ for 50 years with a few years of poverty in retirement at the end, then the time is right to seriously consider the Maid2Clean franchise. Becoming financially free with the Maid2Clean brand strategy is about following the proven Maid2Clean proprietary system including our trademarked Sweep2Left philosophy.

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Maid2Clean is not about creating a job for yourself, it’s about working ‘smart’ and developing a long term residual income. Maid2Clean is not a cleaning business. It’s a white collar franchise that appeals to both sexes At Maid2Clean we not only just recognised that many capable people are simply unable to afford high cost franchises, but also that a fairly large proportion of franchises operate on a ‘shop treadmill’ type trading system, as in, you have to work just as hard each month to earn what you did last month. The Maid2Clean franchise package offers a very low investment and

Maid2Clean is not a cleaning business. they will prove that your income can actually increase month on month, quarter on quarter, and year on year, via residual income generation. Discipline and following a proven system matters more than raw talent in a Maid2Clean franchise. A healthy work ethic will always out perform all other business skills and traits. Remember you are not doing the actual cleaning yourself. You are managing the workers, clients, suppliers and your customers, just like any other business. The demand for this service continues to outstrip supply and this trend is forecast to continue indefinitely.

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ADVERTISING FEATURE

The Maid2Clean Brand Evolution Maid2Clean are committed to the continued evolution of their brand for the benefit of their franchisees and their customers; for example the CICO initiative stands for ‘check in check out’ and represents a unique branding element of the brand portfolio. It’s a bespoke facility that automatically time-stamps on our client records when a cleaner starts the clean and finishes it. When a cleaner arrives at the premises, he or she makes a free phone call which routes through the internet and time-stamps our client records with a call. The same happens at the end of the clean. With CICO Maid2Clean give their clients the peace of mind that comes from knowing that their cleaner has completed the work and attended the full hours that they are being paid for – something their competitors do not and cannot offer. MaidSecure is another unique brand differentiator in our brand portfolio. MaidSecure allows all our franchisees to access many of their key business documents ... online, wherever they are in the world. The MaidSecure facility further demonstrates the franchisor’s ongoing commitment to providing all Maid2Clean franchisees with every business advantage in the marketplace, by investing in new, state-of-the-art technology to support all their franchisees. The Maid2Clean franchise brand goes from strength to strength by offering a superior franchise to existing and new franchisees. MOP further proves that Maid2Clean are one of the most forward thinking players in today’s franchise industry, embracing technology to support their franchisees. MOP is the Maid2Clean Ordering Portal where franchisees

can order all their stationery and leaflets in one place as quickly and painlessly as possible in this one-stop shop. They no longer have to contact a number of different suppliers in order to obtain the best possible deals on the supplies they need; Maid2Clean do it all for them! Maid2Clean also hosts a website www.leafleter.com - which further complements the existing sites used by the franchisee network. The site helps franchisees source more local leaflet distribution partnerships, as the Royal Mail’s leaflet distribution service has become less and less attractive, and effective, due to cost and the ever diminishing returns. Mike Hanrahan, managing director of ActionCOACH, commentedt: “The market is always changing and we need to be sensitive to that. At one time we could rely on a return of one call per 200 leaflets sent out. As the prices have increased, VAT has been added and leaflets are now batch distributed with others, the responses have plummeted, on occasion, to one enquiry per 1,500 distributed.” Maid2Clean strives to continuously improve the business model for both franchisees and their customer cleaner experience and is one of the key principles of the Maid2Clean business. Sweep2Left, MaidAware, MaidVersity, Maid4You, ZeeForum & Maid2Blitz are ALL Maid2Clean innovations which sets this franchise head and shoulders above the rest. For further information on these, please check out our brand portfolio on our site. All of these evolutions are examples of the forward thinking brand development from a leading player in the domestic services market. Superior support in key business areas has helped our franchisees to run profitable businesses year on year and will, no doubt, do so for many years to come!

Be part of our growing network of over 160 franchisees The Maid2Clean business has been established for many years and has been thoroughly tested and refined into our franchise offer of today. Maid2Clean is a management franchise and you will be trained to manage the cleaners in your business Operating to our system, once trained, you will have the potential to earn a significant profit per year, over the entire life of your Maid2Clean franchise business. As one of our franchisees you will benefit from all our experience so you will avoid all the potential mistakes you could make in the early days. We will show you how to market this much-needed service to targeted people in your area and how to close 85% of clients that call enquiring about the service. Your exclusive trading area of quality houses will not overlap with another franchisee. We hold regular franchisee conferences, and business improvement meetings, where you can obtain refresher training and meet other franchisees. As you can see there are many benefits to joining Maid2Clean however we now only have 57 areas remaining in the UK - could you be one of the final 57?

sales@maid2clean.co.uk www.maid2cleanfranchise.co.uk 0845 257 0677

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07/10/2016 12:36


Camile Thai

Honing

a recipe O’Brien’s founder Brody Sweeney is taking things at his own pace as he embarks on one of his biggest challenges to date: taking a bite out of London’s ultra-competitive food delivery market with his latest venture, Camile Thai

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BY MARIA BARR

rody Sweeney grew up in 1960s Dublin on a diet of meat, potatoes and veggies. It wasn’t until years later, when curries and exotic fare from further east started to become commonplace, that his palate made contact with spices like galangal and lemongrass. When he tried Thai food for the first time, he was “blown away by the flavours”, an experience that later inspired his mission to bring his take on the cuisine – healthy, local and with a Westernised twist – to the UK and Ireland Sweeney is perhaps best known for being the man behind the popular O’Brien’s Irish Sandwich Bars franchise. At its peak, it had

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over 300 outlets in 15 countries and was the go-to destination for a classic sandwich and coffee combo at lunchtime. But thanks to the global financial crash in 2008, the economy took a nosedive and O’Brien’s was one of the casualties: in less than a year a heartbroken Sweeney was forced to put the company into liquidation. With his sunny, Irish charm, he seems unflappable but it was a devastating blow. “Afterwards, I got depressed about the situation,” he admits. But the end of his sandwich empire didn’t put him off franchising one bit. Within a matter of months the selfconfessed foodie was back with a new venture: Camile Thai, a food delivery

elitefranchise | October 2016

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Camile Thai

them but they want it to be something special. We appeal to the young, urban professional from the Facebook generation who wants food delivered directly to their door.” The health aspect is paramount and was a core part of the model from day one. “Eating habits have changed a lot and people now want their food to be healthy,” Sweeney says. Looking around Dublin after O’Brien’s went into liquidation, all he saw were fish and chip shops and fast-food takeaways. Whilst he’s quick to stress there’s nothing wrong with this in principle, Sweeney had noticed that young, urban people in particular were becoming more cosmopolitan in their tastes and increasingly interested in wellness. As a result, while Camile Thai’s dishes may sound similar to those you might find at your corner takeaway, they have a healthy twist: all meals come with brown rice by default, calorie counts are made public and ingredients are as natural and locally sourced as possible. These efforts have paid off and saw Camile Thai crowned the Healthiest Takeaway in Ireland by Just Eat. But what made Sweeney give franchising business with a focus on Asian – especially Thai – flavours. another go so soon after his O’Brien’s journey While Sweeney was buoyant, convincing other people ended – and in the middle of a downturn? “It’s proved to be more of a challenge and it was an uphill simple: I had run out of money,” battle to even find a lease. Finally, he opened his he says. “I had no choice. You first outlet at Dolphin’s Barn on Dublin’s South have to try again.” Sweeney isn’t Circular Road. It’s simple: I had allergic to failure and thinks Camile Thai’s model is simple: fresh, healthy no choice. You British entrepreneurs could and restaurant-quality meals with a blend of have to try again learn from America, where western and eastern flavours that can be ordered entrepreneurs often aren’t taken online. Authenticity in flavours is key and seriously unless they already Sweeney makes sure his input is heard in the have a handful failures under their belts. And kitchen. “I taste each and every dish before it’s rolled out Sweeney has certainly had his fair share: he on the menu,” he says. Currently the delivery side of the started two businesses in his youth that didn’t business accounts for at least 70% of sales and is in keeping pan out, made an unsuccessful attempt to win with modern lifestyles, Sweeney explains. Rather than a seat for Fine Gael in the Irish general election selling to everybody, he knows his target audience. “People and failed to launch an upmarket Chinese these days want convenience,” he says. “After a long day at takeaway that didn’t hit the right note. work, they want to come home and have dinner brought to October 2016 | elitefranchise

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Camile Thai

People these days want convenience. After a long day at work, they want to have dinner brought to them but they want it to be something special

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Rather than being embarrassed by failure, like a chef perfecting a recipe, Sweeney has learned from it. So as he prepares to launch Camile Thai in London, he’s taking a more cautious approach. “It won’t be easy in a city that’s spoiled for choice,” he says. “But we have a very unique offering.” Indeed, Sweeney will have to compete with the likes of Deliveroo, Just Eat and now UberEATS. Does he ever consider partnering with one of them? “We can’t afford the cut they would take from us,” he says simply. Instead, Sweeney is sticking with his direct-to-diner model, focusing on keeping the quality up and slowly pumping money into new technology to help drivers get even hotter food to people’s doors.

Drawing on lessons from past ventures, Sweeney knows how important it is to focus on the customer and tweak things as you go along, rather than waiting until it’s too late. “Early on, we put a sweet chilli chicken dish on our kid’s menu, not even thinking that parents might be put off by the word ‘chilli’ – even though the dish wasn’t spicy,” he says. “But we learned from that and changed the name of the dish.” And with one eye firmly fixed on what’s hot, Sweeney has supported new menu additions like quinoa and gluten-free options in response to what’s trending in the foodie world. His strategy this time around is also a very localised one. Rather than spreading himself across an entire city too quickly, the entrepreneur is opening branches in small clusters to get a strong foothold in one neighbourhood before slowly repeating the model in another. “Our strategy is to be number one within a two-mile-radius before expanding anywhere else,” he says. “That’s very important to us.” And this approach has been born out of his painful experience at O’Brien’s, which had too many properties to sustain. “I’ve learned a lot”, he says. Today, four of the company’s 15 outlets are franchises and although he ultimately hopes to have 100 outlets in London, the first won’t be a franchise. Instead he’s happy to take things at his own pace as he learns what Londoners want. “We need to test the model and validate our assumptions, tweaking things along the way,” he says. One thing’s for sure, he’s as hungry as ever.

elitefranchise | October 2016

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The Ultimate Professional Franchise Opportunity

An IFG Franchise provides you with an opportunity to earn an above-average return on your working capital, plus: • No Long Hours or Extensive Travel • No Employees • No Inventory or Equipment Get the full story today. Contact us at 0845 834 0332 or ifg@interfacefinancial.com

www.interfacefinancial.co.uk/franchise INTE002 IFG June16.indd 1

03/06/2016 13:47


ADVERTISING FEATURE

Using THE SERVICE inspired me to become a FRANCHISE OWNER

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stuary Logistics is a global supplier of logistics and freight forwarding. Based in Essex, the company was started by James Circus in 2011 and handles high-volume, time-sensitive shipments, collecting from anywhere in the world via any means of transport.

I’d created a monster... “In summer 2012, the business was a year old and we’d achieved £2m turnover but less than £50,000 was profit. I was working so many hours and had nothing but problems – cash flow, staff, customer complaints. The turning point “It was a Friday afternoon and I went back to my home office and Googled ‘business help’. I saw ActionCOACH listed in the results and found my local action coach in Essex, Lucas Vigilante. I gave him a call and we

James Circus enjoying new found family time

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met up that afternoon for a coffee. “From a moment of desperation, where I felt everything was on my shoulders, I had found someone who I could turn to. Lucas and I had our first meeting the following week where he began to steer me in the right direction – and that is what coaching really is, a steer to solutions. “Initially, we worked on the vision and mission for the company and myself. It became evident that I wanted to sell the business as my end game and so I needed to work with the exit in mind. We decided on a three to five-year plan to achieve this. “It was also clear that I couldn’t continue working 60-80 hours a week. I was chief accountant, in charge of operations, sales and everything else in the business. The business was my life. I’d let everything else go including my hobbies and quality time with my family. I set a personal

goal with Lucas that I’d make time for two family holidays a year. Lucas also suggested that I should think of a personal reward should I meet my long-term objective of selling the business. I’ve never been interested in flashy cars but I have always loved Bentleys so I humoured Lucas and said that would be my reward. The results “The biggest initial change came as we developed systems into the business. In just a few months they made a difference to the hours all of us were working. “Improving the team dynamic was a key part of the process. We’ve attended ActionCOACH’s Business Excellence Forums for the last four years. The world-class speakers invigorate the team and set us on a growth path together. “Our three to five-year plan progressed well. Four years in and Estuary Logistics is turning over £10 million with net profit of £500,000. We’ve grown from six difficult to manage staff to a great team of 40 with key roles maintaining the business on a day-to-day basis so that I’m not required. The business will sell for several millions and I’ll remain as the managing director of this larger international organisation to push growth further. Time for a new challenge “In 12-18 months I began to have so much more free time that I looked at other business opportunities to invest in and grow – in fact, I regularly work only 15-20 hours a week. In

elitefranchise | October 2016

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ADVERTISING FEATURE

Lucas Vigilante helping new franchise owners free of charge

October 2014, Brad Sugars, the global founder of ActionCOACH, toured the UK. I had heard him speak before but this time he said that he was looking for more Action Coaches. I love what ActionCOACH has done for my business, my time and my family and, so, I discussed joining the franchise when I had dinner with Lucas that night. I was in training to be an action coach within 5 weeks! I’ve chosen this as a part-time addition to my career and only coach four business owners at one time. I love going in to other people’s businesses and helping them the way that Lucas does for me. “But I haven’t just spent my free time on a new business venture. I now spend so much more time with my wife, Laura, and our two daughters. I get to pick the girls up from school and we enjoy five or six holidays a year, not just the two I had originally planned. And, yes, I will have bought myself my dream Bentley by the time you read this.”

“It became clear, very early on, James never wanted to work in that business, he always wanted to build it to sell it on. So, we started with the end in mind. We were smart with recruitment and the development of systems and processes to ensure he wouldn’t need to be involved in the day-to-day running. It took a shift in his thinking but he soon realised if he had a great team, he could drastically reduce the hours he was putting in. “Of course, it didn’t just happen overnight. James was open to try anything new that might further the business and prepared to read up on anything that may improve it. It’s about marginal gains. Just like when we hear how the GB Cycling Team win at the Olympics by taking their own mattresses to Rio; making small changes across the business helped James win gold and now he’s helping other business owners as an action coach.”

What does a seasoned Action Coach think? “Lucas Vigilante is an award-winning action coach and one of a team of master coaches who regularly helps new franchise owners master their new vocation.

Would you enjoy helping business owners make a difference like Lucas and James? You can find out more by watching the ActionCOACH overview video at actioncoach.co.uk

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07/10/2016 12:35


Cashflow

Mastering the cashflow

forecast While some franchises may be wishing they had a crystal ball to navigate them through these uncertain times, creating a cashflow forecast is the next best thing BY Chris Roberts, co-owner, franchise Finance

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ritain’s franchise industry is in great shape; a recent report by the bfa found that franchising contributed £15.1bn to the UK economy in 2015 and 97% of franchisees reported making a profit. But of course profit isn’t the only important financial metric. Even profitable franchises could go bust if they run out of cash because it’s not the profit that pays the bills – it’s the actual money that you have in your bank account when a payment is due to be made. In my experience, not having enough working capital – especially for new franchises – is one of the most common mistakes. This can be avoided by creating a thorough cashflow forecast that helps you to, in a sense, peer into the future and make preparations. Love them or hate them, cashflow forecasts are a necessary part of the business toolkit and can stop entrepreneurs from getting themselves into trouble down the line. If you carefully forecast what you expect to receive and when you expect to receive it, as well as what payments you need to make and when you expect to make them, you can make it less likely that you’ll run out of available funds. If things look too tight then you can delay non-

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Cashflow

urgent payments, chase payments earlier or even try and arrange an overdraft facility or a short-term loan to give you the extra protection you might need, if need be. But you wonâ&#x20AC;&#x2122;t be able to take any of these actions unless youâ&#x20AC;&#x2122;ve first prepared a realistic cashflow forecast and then monitored your actual receipts and payments against your projections. The A-Z of a cashflow forecast First, you need to decide whether your forecast will show monthly or weekly income and expenditure. The general rule here is that the more serious any cashflow problems are likely to be, the shorter the period you would choose. A business thatâ&#x20AC;&#x2122;s teetering on the edge of insolvency might even have a daily forecast but most businesses work on a monthly cashflow basis. There will be a column for each month going across the top of the spreadsheet page and a column at the end for the totals for the overall period. While this period can be for as long or as short as you like, it is normally for six or 12 months. There are then three key parts running down the page. The first has a line for each source of income, for example capital or directors loans, bank loans, sales and other income, with another line for the total of the income across each month. The second part follows the same pattern but covers the payments you expect to make. For example, this could be your purchases, wages, rent and rates and all your other overheads, plus a total at the end of each column for each period. The third and final part is the calculation, which shows how much money will be left in the bank account at the end of the month or whether there is a shortfall. The calculation is logical: you take the period opening balance, add the total income and subtract the total expenditure. The resulting figure will be the closing balance for that month and will automatically become the opening balance for the next. This format is then

extended right across the page so there is a closing balance in every column for every period. If you do end up showing a negative figure in one or more of the columns then you either need to make some realistic changes to your original proposals or, if you cannot do that, inject more funds into your business. Alternatively, get your bank to give you an overdraft facility with sufficient leeway.

You always need to build a satisfactory safety net

October 2016 | elitefranchise

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Cashflow

Beware the pitfalls There are unfortunately some common mistakes people make when creating cashflow forecasts. Firstly, the opening balance must be realistic or each period’s closing balance will be out by the same amount. The opening balance will be zero in the case of a startup but not for an existing business. You need to ensure you’re putting forth a realistic figure starting from day one. You also need to make sure the forecast is mathematically correct – don’t assume that just because it’s been compiled on a computer that the sums will be right. To do a quick check, take the opening balance, add the entire projected income and subtract the whole of the projected expenditure. This should be equal to the closing balance in your final period. And when it comes to sales figures, remember that they should include VAT if the business is VAT registered. Similarly, purchases and expenses should also include VAT where it’s payable. You then need to calculate and include your projected quarterly VAT payments – or refunds – to coincide with your future VAT returns. You may find it useful to get your accountant or business consultant to help you with this calculation if you are finding it too tricky.

In my experience, not having enough working capital, especially for new franchises, is one of the most common mistakes 50

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Preparing for the unexpected How do you know if you’ve included everything and that you have them in the right week or month? The answer is you won’t know for sure. Additionally outside factors beyond your control, like the weather or even political upheavals like Brexit, can always affect your business. You need to build a satisfactory safety net and, if necessary, don’t be afraid to ask for a little extra help from the bank or create an updated version to reflect changes in circumstances. Owners of seasonal franchises must not forget to apportion income and related expenses according to expected peaks and troughs in demand. And if you’re just starting up, bear in mind that customers may take a while to get to know you so don’t overestimate your initial takings. You also need to be mindful of the fact that the closing balances in each period are just that, closing balances. For example, during the month of March it may unexpectedly snow for the first two weeks and sales may take a dive. However, the majority of your outgoing payments may need to be made in the first two weeks of the month. In this case, your bank balance in the middle of the month could be significantly lower than you expected or even turn negative. Unexpected events like this make it important to factor in a little wiggle room in your forecast. In my opinion, you should always try and have at least a month’s worth of available working capital as a buffer. When it comes to business, cash is indeed king and franchises sadly do go bust if they run out of money. But if you plan carefully and think ahead, you’ll give yourself the best possible chance of success.

elitefranchise | October 2016

05/10/2016 15:39


ADVERTISING FEATURE

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

O

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

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

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

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

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

elitefranchise | October 2016

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Online reputation

Making your reputation In the digital era, reputation has become more important than ever. Thankfully there are now a whole host of tools and techniques that can help franchises improve their rep online BY JOSH RUSSELL

“I

t takes 20 years to build a reputation and five minutes to ruin it.” In an age where a tweet can make its way round the world in seconds, this warning from Warren Buffett couldn’t be truer. This is why in the digital age it’s absolutely vital for brands to have a strategy for managing their reputation online. “In this day and age, monitoring and maintaining your reputation across all spheres, both online and offline, is imperative,” says Celina Wilde, social media specialist at Cinch Social, the social media consultancy. Nowhere is this truer than in franchising: whilst franchisees may operate semi-autonomously, the impression their brand gives consumers will affect the network as a whole. “The execution by a specific franchise unit in a particular territory will determine whether the big business will ultimately be successful,” Wilde says. This is why it’s vital to

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have a clear strategy for managing the network’s reputation online. But how can franchises first start to get a handle on how their brand is viewed online? Wilde first recommends they invest in some social listening tools. “Social listening is the process of tracking online conversations through social media and web monitoring to help you understand how your company is perceived,” she says. Notifying the franchise when and how it is being discussed online, these tools will help build up a picture of how its target market perceives its brand. “You can then take analytics and data from consumer behaviour and begin to understand the issues that they present,” she says. Another tool that no franchise looking to present its best face online can afford to ignore is social media. “If you’re a franchise and not on social

elitefranchise | October 2016

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Online reputation

If you’re a franchise and not on social media, people often feel they can’t get a clear handle on you Celina Wilde, Cinch Social

media, people often feel they can’t get a clear handle on you or how your business fits into the local community,” says Wilde. Deciding which of the myriad social platforms available you should use depends on your target audience. Facebook is great as general a purpose tool, whilst channels like Snapchat and Instagram

may be the best way to reach millennials. But whichever platforms you end up using, it’s important to not spread yourself too thin. “Using too many dilutes the impact of your message, especially if they are all saying exactly the same thing,” Wilde explains. “And having an inactive page can be just as bad as not having a page at all.” Whilst it can be tempting to focus solely on these mass-market tools, don’t be afraid to build your own. “We’ve now got a dedicated app and that’s been huge for us,” says Julie Clabby, founder of Busylizzy, the post-natal fitness, baby and toddler class franchise. Not only does the

app allow the franchise’s members to book and transfer classes but it also gives them a channel where they can offer their input on their experiences with the brand direct to the Busylizzy team. “They can hit a button and give feedback about the app, a class, an instructor or a venue they’ve been to,” she says. “And that comes straight into our inboxes.” Getting a better picture of all the commendations and criticisms a franchise is receiving is only half the battle however. What’s important is knowing how to respond. Certainly no franchise should be afraid of making the most of rave reviews. For example, any positive October 2016 | elitefranchise

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Online reputation

When people fear that they’re not being listened to, that’s when a very small problem can escalate Julie Clabby, Busylizzy

feedback that Busylizzy receives from its customers, it actively pushes out across its marketing channels. “We often use a lot of these customer reviews on our website and marketing literature,” Clabby says. Not only that but the franchise often asks its members to share positive feedback on its social-media channels. Clabby points to the Horsham and Crawley club as one that’s had particular success with this method. “It’s got five stars, 30 or 40 reviews and everybody just raves about it,” she says. “When you’ve got everyone saying how great it is, that is extremely powerful in your local community.” In fact, this can also prove an invaluable tool in helping to create a buzz around new locations that perhaps don’t yet command much attention in their local areas. “We’ve got lots of new clubs opening all the time and

from their point of view they haven’t got a reputation yet,” says Clabby. By pointing the public to the reviews being received by other clubs in the region, the franchise is able to get the ball rolling and build up some word of mouth about the new location. “You can piggyback on their prestige,” she says. “That’s been quite a good way of using reputation across more than just one site.” Unfortunately it’s impossible to keep everybody happy all of the time and sometimes a franchise will face a customer panning its brand. “That’s really hard for business owners because we pour so much heart and soul into our companies,” says Wilde. “But it’s important to distance yourself and be objective.” And while negative experiences might be hard to deal with, they can actually be opportunities in disguise: franchises that show they are committed to resolving customer complaints and using them to improve their systems and services can often come up smelling of roses. “The narrative of how your business has fixed the problem can be as powerful and compelling as someone who’s just happy with you,” she says. To ensure it stands the best chance of turning a negative into a positive, a franchise must move quickly and respond to any customer feedback promptly. “When people fear that they’re not being listened to, that’s when a very small problem can escalate,” says Clabby. For this reason, Busylizzy has implemented a 48-hour rule: whether a customer has asked for a password reset on their account or has a complaint about a class, the issue should be resolved inside of two days. “Whatever it is it’s turned around quickly,” she says. “That does makes a difference and increases the chances that the customer goes away happy.” Perhaps the most important thing for any franchise to consider around reputation is who will be responsible for managing a franchise area’s reputation at a local level. In Buzylizzy’s eyes, there’s no question of who should be dealing with customer feedback. “Any problems that come through would essentially go to straight through to the franchisee,” says Clabby. While the Busylizzy head office would be available if there ever was a major crisis an individual franchisee couldn’t handle, Clabby feels that the franchisor steaming in every time a customer has a minor issue would set the wrong tone. “Clubs need to be able to make their own decisions and not feel that Big Brother head office is going to wade in and take over unnecessarily,” she says. “You want to empower them, rather than stifle them.” October 2016 | elitefranchise

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OVER TWO DECADES OF SUCCESSFULLY SETTING Cleaning

Franchise owners say:

PEOPLE UP IN BUSINESS JOANNE Previously Project manager at Bank of Scotland Starting turnover: £50k Current turnover £200k

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

Previously Textile Manufacturers

Cleaning

CK

DU

Current turnover £620k

CH BL E

ESTABLISHED

LEN DONNELLY

1993

19

Previously Retail Manager

93-2013

Purchased resale Current turnover £350k

Previously Logistics Manager Starting turnover: £48k Current turnover £140k

MARK & JAMES

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

Franchising

PETER & DENISE

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

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

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

BUILD YOUR BUSINESS THE EASY WAY LARRY

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

GRAHAM & JAN

We Guarantee:

Previously Finance Director Starting turnover: £60k Current turnover £250k

• Turnover • Growth • Support

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

Full training, support and low investment Invest from £9,950 to £190,950. Turnover from £12,000 to half a £1/2 Million per annum. With over 100 franchisees nationwide, and many more areas and opportunities available, you too could benefit from the proven Dublcheck system. Dublcheck’s unique franchise system is a proven way to build a successful business in a multi-billion pound cleaning industry.

Further Details:

0800 317236

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

Carol Stewart-Gill, Founder and Chairman of Dublcheck

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

FULL MEMBER

*Guarantee turnover is not a guarantee of profit. All figures correct at the time of going to press.

EliteBusiness0916.indd 1 Untitled-3 1

DUBL001 07/09/2016 14:40 19:44 05/08/2016


ADVERTISING FEATURE

Current Turnover in excess of half a million pounds

DUBL VISION Dublcheck co-franchise owners Mark Howarth and James Kitwood look back on their journey from single business owners to co-franchise owners and how it has changed their lives.

T

here is the old saying ‘it’s grim up North.’ Six ago years that was most certainly the case working in the cut-throat world of retail fashion manufacturing in Leeds. Dublcheck co-franchise owners Mark Howarth and James Kitwood had spent 20 years manufacturing garments for major blue-chip retailers such as Next, Ted Baker and Austin Reed. However, as for many companies in the UK whose businesses relied on the British manufacturing market, the writing was on the wall. Says Howard, “In the beginning business was quite lucrative and enjoyable, but slowly the times changed, as did the manufacturing locations for our products. Manufacturing in the UK became based in Poland, then Romania, Hungary, Macedonia,

China and India. I spent more and more time abroad. Slowly the worklife balance began to tip and my family life bore the brunt.” Working an average 40-hour week initially, that quickly became a 70hour week, Mark and James could no longer spend quality time with their families and when coupled with the gruelling travel schedule, both ended up with the same thought: ‘something has to change and we need some inspiration!’ A visit to The British Franchise Exhibition in 2009 led to a moment of inspiration. “In front of us was an array of different opportunities.” explains Kitwood. “Up and down the aisles, a discussion here, a goodie bag there, but none were exactly right, until we stopped at the Dublcheck stand.”

During the two-hour drive back home, Mark and James discussed what they had seen at the expo. Business after business was ruled out until they got to Dublcheck. After weighing up the pros and cons between their current role and what Dublcheck offered, both men realised that a Dublcheck Cleaning franchise might in fact be what they were looking for. “It was UK based, it was relatively recession proof and it couldn’t be outsourced abroad,” Howarth highlights. “It was a basic business concept that was easily scalable and most importantly of all it was backed by the support of an established franchisor and that was something that really appealed to us.” In June 2011 , Howarth and Kitwood took the plunge and bought an established franchise from another Dublcheck franchise owner who was looking to retire. The transition was not an easy one but they were helped by the mentoring system that Dublcheck had put in place where an established franchise owner offered guidance and advice for as long as it was deemed necessary. After three months of strong support and guidance, Howarth and Kitwood felt they were capable of spreading their wings and running the business. “With the continued support of Dublcheck and ideas of our own we continue to flourish as a business,” Kitwood reveals. DUBL001

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October 2016 | elitefranchise 59

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Conducting investigations

Getting to the truth BY Lindsay Parkinson, employment law consultant, Avensure

Investigating potential misconduct in the right way can prevent costly mistakes down the line

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I

n order for society to move forward, there has to be a broad framework by which we all live and operate. The same applies to all businesses: from large corporations or small corner shops, we all strive to do the right thing no matter what. Policies and procedures crisscross organisations trying to ensure we operate fairly and consistently. Working together is a fundamental part of how we operate as an organisation but what if things go wrong? How do we deal with the issues then? What steps as an employer do you need to take? Here is a real-world case that shows what can happen when we fail to get the basics right. The area manager of the company came into work in the morning and was approached by a security guard who was doing collections. He informed him that there was no

money in the drop safe and they had been advised a drop of over ÂŁ4,000 had been made not long after midnight. If this money could not be recovered, that would be significant loss to the business. The area manager spoke with the store manager who confirmed that he had deposited over ÂŁ4,000 just after midnight in the drop safe. He had the till roll and cash summary for the previous day, which was due to be sent to main office. After a brief discussion between the area and store manager, the latter was suspended on allegations of the theft of over ÂŁ4,000 to allow an investigation to take place. The store manager protested his innocence, stating the safe was insecure and that access can be obtained through the drop chute. No notes were taken of the discussions and no action was taken to

elitefranchise | October 2016

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Conducting investigations

At this stage, the investigation officer failed to undertake any checks of the safe, nor did he clarify what was meant by ‘unsafe’

address the store manager’s concerns about the safe. The store manager was then called to an investigation meeting by the area manager, where the allegations of the theft of just over £4,000 were made. The store manager reiterated his innocence, arguing that the safe was faulty and had been insecure for a considerable period of time. At this stage, the investigation officer failed to undertake any checks of the safe, nor did he clarify what was meant by ‘unsafe’. The investigation officer also didn’t interview any of the employees who were in the store either the previous night or the morning after. Based on the evidence available, a decision was made to pursue formal disciplinary action on the grounds of theft. At the disciplinary hearing, the store manager admitted counting

and bagging the money up, placing it in the chute, setting the alarm and leaving site. He reiterated his argument that the safe was not secure and that you could access it by the drop chute and retrieve whatever had been deposited. Other staff had entered the premises the following day and had access to the safe. Based on the evidence available to the company, they decided to dismiss for gross misconduct and give the right of appeal to the individual. The appeal officer made a 220-mile round trip, which was quite reasonable in the circumstances given someone’s October 2016 | elitefranchise

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Conducting investigations

livelihood was at stake. He found the safe was insecure. You could reach through and pull back items of varying sizes through the flap, which is meant to be oneway only. He had spoken to staff onsite and they advised him that the safe had been damaged for about eight months and that they had raised the issue with the area manager repeatedly but couldn’t get anyone to repair it. What’s more, the staff members said nobody had asked them about the theft when it first happened. The appeal hearing was scheduled and the former employee attended. Ultimately

the appeal was upheld. The ex-employee didn’t wish to be reinstated as he had already secured other work elsewhere and the company settled the matter. What can we conclude from all this? Investigation – conducting a thorough investigation when you’re trying to establish the facts is of vital importance. At this stage, it is about gathering information and establishing the facts. No decision should be made until then. At this point, you decide whether the employee has a case to answer formally or you

Conducting a thorough investigation when you’re trying to establish the facts is of vital importance

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take no further action. This should be done in a timely manner. Listening skills – it’s important that you listen to what people tell you and document this to allow you to make reference to it in the future. Be active in your listening and test your understanding of what you’re being told so that there’s no misinterpretation at a later stage. It’s OK to seek clarification if you dont understand what you’re being told. Questioning – this is very much linked to listening and understanding what the employee tells you. Understanding the topic is important to enable you to ask relevant questions. You will need to be able to analyse responses to develop further questions. Preparation and planning – it’s essential you’re not rushed into hurrying to bring the matter to a conclusion. Consider what you’re seeking to establish and build yourself a framework. It’s more important that you take time to establish the facts and then, once you’ve done so, make a decision based on the evidence available to you. Taking notes – always have someone to take notes of the meeting. Don’t try to write your own notes, as you will miss or misinterpret something. The notes provide a basis for the decision and they should be simple, clear and concise. Anyone should be able to pick them up, read them and understand the case. The notes of the hearing become the basis for your decision as the employer. Witness statements – have the witnesses write their own statements in their own words. Make sure they make reference to the date of the incident, who was involved, what was said and whether there were any other witnesses. Reasonable belief – the hearing officer can make a decision based on the evidence available to them. This is called a ‘reasonable belief ’. An employer doesn’t require proof beyond reasonable doubt. The burden of proof is significantly different for disciplinary hearings as opposed to a court of law. Taking these steps can prevent a business from making a costly mistake when investigating potential misconduct. It may be an old adage but “by failing to prepare, you are preparing to fail”.

elitefranchise | October 2016

05/10/2016 15:50


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Recruitment tech

Don’t fear the rise of the

recruitment machines Investing in the right technology can boost your franchisee recruitment, whilst leaving the competition shrinking in your rearview mirror BY ERIC JOHANSSON

F

inding the right talent can mean the difference between launching a business into the stratosphere or dooming it to the graveyard of forgotten enterprises. And that’s especially important when it comes to franchise recruitment, as franchisees are effectively the face of your business. Given that 7-Eleven recently had to face multi-million dollar charges after some franchise owners were caught underpaying staff, it’s safe to say franchises cannot afford recruitment boo-boos. Certainly the analogue tools franchises once relied on for recruitment – such as placing ads in newspapers and following up on leads by telephone – weren’t the most effective ways of securing new franchisees. “At least 70% of the time, when I called people back I ended up going straight to voicemail,” says Dugan Aylen, director and founder of Franchise Recruitment Services, the franchise recruitment solutions company. And even when Aylen did manage to get through, the

64

fact someone had responded to a franchise ad didn’t necessarily mean that they were particularly engaged. “Often when they answered, they didn’t want to talk to me and just asked me to send them information,” he says. “I felt like I was cold calling and bothering people.” Ultimately, any franchise that spends more time than it needs to following up on leads and managing talent risks slowing to a crawl, something it cannot afford in this fast-paced era. “The biggest risk franchisors run by not investing in recruitment technology is wasting time,” says Aylen. Without Fortunately, the digital tech, you age has provided franchise risk missing recruitment professionals with creative ways to opportunities boost their ability to Dan Archer, Promedica 24 source talent. Now 91% of recruiters use some kind of recruitment technology, according to a survey from Software Advice, an online reviewer of recruiting technology. “We are in the midst of

elitefranchise | October 2016

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Recruitment tech

The biggest risk franchisors run by not investing in recruitment technology is wasting time Dugan Aylen, Franchise Recruitment Services

a technological revolution,” says Farida Gibbs, CEO and founder of Gibbs S3, the hybrid staffing company. “If we don’t invest in tech we’ll fall behind very quickly.” For Aylen, the solution to overcoming this hurdle was creating the technology behind Franchise Recruitment Services. Its tools map out exactly how interested a potential franchise owner might be by keeping track of how much time the candidate spends on the franchise’s website and how many emails from the company are opened. “The more active they are, the more likely they are to take the next step forward,” says Aylen. Promedica 24, a live-in care franchise, uses a similar system to gauge how interested a prospective franchisee is. Given that the company receives over 7,500 texts from prospective franchisees and clients on a daily basis, it’s safe to say the ability to automatically track the activities of candidates saves a lot of time and ensures hot leads don’t grow cold. “Without tech, you risk missing opportunities,” says Dan Archer, franchise director at Promedica 24. To avoid that from happening, all data goes through Promedica 24’s customer relationship management (CRM) system. But Archer is keen to stress that relying on software to manage the franchise’s leads doesn’t mean it has abandoned 66

the personal element entirely. “Technology augments the interactions we have with people, rather than replacing the old system,” says Archer. When Promedica 24 reaches out to candidates through emails and text messages, every response is crafted by a real person, rather than generated as an automated message. “People know that when they see it,” says Archer. “Don’t use technology to try to replace people but to enhance the relationships you have with candidates.” And this is good practice for any franchise looking to up the tech it uses in its recruitment. Given candidates still prefer dealing with people rather than machines, if you do end up overusing tech, you risk alienating potential franchisees rather than building the foundation of a strong franchising relationship. “It doesn’t matter how much digital solutions evolve, tech cannot completely replace the human touch,” says Gibbs. Another way technology can help create a more personal experience is through the use of video, which is why it’s hardly surprising 71% of companies carry out some kind of video interviewing, according to a survey from Korn Ferry Futurestep, the recruitment agency. However, Promedica 24

has shown there are other ways to use video than just conducting interviews: it sends personalised videos to candidates based on whatever questions they may have posed. And while it may help answer any early-stage questions, this personalised approach also serves another purpose. “Ultimately, it’s going to make them more inclined to speak with us over the telephone and engage with us,” he says. However, establishing repartee with potential franchisees is only possible if you already have a strong recruitment system to begin with. Technology can only enhance that system, never replace it. That’s why Archer argues against systems that claim to replace the recruiters and he remains sceptical of any supplier peddling catch-all solutions. “There is no silver bullet,” he says. “If you invest all your money in a provider saying they can do all those things for you, then you are going to be disappointed.” Despite this, the way recruitment technology helps provide greater efficiencies and ensures more engaged candidates means that it’s something no franchise can afford to ignore. So while the rise of the machines may seem daunting, tech can help you find the best people to ensure your franchise thrives in the 21st century.  

elitefranchise | October 2016

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ADVERTISING FEATURE

Day in the life of Zipyard’s Graeme Mulheron Graeme Mulheron has successfully run a number of businesses over the years. Having looked at a number of franchises opportunities, he opened The ZipYard Bedford in August 2013. Here he describes a typical day.

12.30-1pm

Lunch for me is taken as I work to ensure I am available to customers at all times. 1pm

7am

Grab cycling helmet, set off on 35 minute commute to Bedford, arriving just after 7.30pm. 7.45-8.30am

Prepare the store for opening. Log on to the system, check emails, social media and order and supplies required. Schedule seamstresses workload. We work flat out so affective planning is vital. 8.30am

Staff arrive, team briefing. 8.45am

Collection/ deliveries. We pride ourselves on excellent customer service and offer a local collection and delivery service for local clothing retailers such as Moss Bros. 9am

Doors open! During the day we deal with over 60 customers, each requiring and receiving a first class service. In addition to routine zips, minor alterations and repairs, we also take on more complicated tailoring work and upcycling is all the rage at moment. I complete all the required information for the customer and obtain payment in advance. Throughout the day I will carry out regular checks on the presentation of the Centre and the fitting rooms.

Check that each seamstress is getting through the day’s work and where necessary start allocating them work for the following day. Continue to deal with any queries that they may have. There is an ongoing communication between us all throughout the day. 5.30pm

The store closes. I cash up and close down the system. After tidying the store, it’s time to review the target/productivity board and discuss the day’s performance with the team. Before locking up, I allocate the following day’s work for each seamstress. 6pm

I action any paperwork before finishing the day. I set the security alarm, lock up and cycle home arriving around 6.45pm in time for a lovely meal (and sometimes a nice glass of wine) with my wife and three teenage daughters. The eldest of whom works in store with me on Saturdays, our busiest working day.

11am

Prepare drinks for the team (includes cake on a Saturday). This ensures they are focussed on getting work completed and of course demonstrates that I am a caring boss. THEB002

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BE PART OF THE EXCITING NEW CURRENCY REVOLUTION

Largest cashless banking facility globally

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22 year old pedigree

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Be part of a franchise community

Over 60% of businesses need our service

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BB UK

BUSINESS BANK EXCHANGE 29/01/2016 16:57


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

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

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

Regional P&L Forecast YEAR

P&L

1

£64,906

2

£133,956

3

£313,006

4

£418,342

5

£535,943

District P&L Forecast YEAR

P&L

1

£50,838

2

£121,015

3

£251,935

• Running periodic networking events

4

• Maximising the clients usage of our currency

5

£305,135 £347,396

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

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

BB UK

BUSINESS BANK EXCHANGE 06/10/2015 14:12


Minimum performance clauses

The bare minimum Ensuring franchisees are upholding certain standards is vital for any franchisor. Minimum performance clauses provide the perfect framework to guarantee franchisees are delivering results by Kate Legg, CEO, Komerse

T

here’s a strong commercial incentive for franchisees to perform at their best. After all, the franchisee owns their own business and reaps the rewards of their efforts. Equally, they will suffer in a very direct way if their business underperforms. You may therefore wonder why minimum performance clauses are used in franchise agreements. defining a purpose Minimum performance clauses were rarely seen in older agreements but are now commonplace. One reason for this is that a franchisor needs to be able to take action against an underperforming franchisee to protect the brand, the wider network and, occasionally, the franchisee themselves. Many networks also use a performance review process as an added layer of motivation for franchisees – no one likes to come last. On a more constructive note, performance monitoring means there is a process of continual improvement across the network as everyone strives to move up the rankings. Considering the kinds of clause As the name suggests, minimum performance clauses are stipulations that require franchisees to attain a

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certain level of performance, with sanctions being put in place if the required standard is not met. The exact nature of the requirements differ widely from network to network but generally clauses fall into two categories: quantitative requirements, which require the franchisee to achieve numerical targets like a minimum monthly turnover or annual sales growth; or qualitative requirements, which tend to be more subjective and relate to wider, operational issues. Setting sanctions The specific sanctions imposed for failing to achieve the minimum performance standards will be set out in the franchise agreement. Typical sanctions might include: losing the right to renew at the end of the current term unless performance improves; financial sanctions, such as paying a minimum fee; a requirement to undergo additional training or be supervised by the franchisor; or, in the worst case scenario, termination. Importantly, the franchisor’s reaction should be proportionate to the franchisee’s breach, so if a franchisee narrowly misses a target, sanctions should not be as severe as for a franchisee who falls a long way off. In a well-run franchise, failure to achieve a minimum performance

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Minimum performance clauses

target will trigger a process through which the franchisor supports the franchisee and helps them to improve. Termination should always be a last resort and only used after the franchisee has been given time and support to try to do better. Selecting a target Minimum performance targets should be set with extreme care, both in choosing the areas that will be assessed and then setting an appropriate minimum level for each one. A good starting point is to consider the factors that are most fundamental to the successful operation of the business. You can then set performance targets for each of those functions. Once the areas for monitoring have been chosen, thought needs to be given to where to set the bar. Comparing franchisees to others in the network is tempting but may not be appropriate if either there are relatively few franchisees in the network or if there are significant differences between their local businesses. For example, a new franchisee would be expected to have a very low turnover but very high sales growth compared to a franchisee who has been operating for many

years. Other factors that may make drawing direct comparisons between franchisees difficult are significant differences in local market conditions or the size or spread of the territory. If there are large differences between franchisees, then any performance measuring process will need to take them into account. For example, new franchisees could be granted an initial grace period whilst they establish themselves, during which time the minimum targets won’t apply. Averaging performance across the network as a whole is one way to mitigate the differences between franchisees but in that case the target must be set at a level that is well below the average. Otherwise, by definition, there will always be some franchisees who may still be successful in their own right but that may not be able to match performance of the best franchisees due to reasons beyond their control. Also be mindful that franchisees at the extreme ends of under- or overperformance may distort the average. It’s also important to remember that the targets for these clauses are intended to be set at a level that represents the absolute minimum required for the business to be viable. The franchisor may well set

If a franchisee narrowly misses a target, sanctions should not be as severe as for a franchisee who falls a long way off other higher performance targets in business plans or as part of a programme of mentoring and motivating franchisees but these should be separate to the minimum performance clauses and fall outside the franchise agreement. Minimum performance clauses are a valuable weapon in the franchisor’s armoury when it comes to protecting both franchisees and the brand. However they must be chosen with extreme care. It’s important that the target is set at an absolute minimum, not at a level that the franchisor would like franchisees to achieve in an ideal world. Failure to achieve a target should result, in the first instance, in the franchisee being given extra help and support to help them improve. More serious sanctions and, ultimately, termination should only be used as a last resort. October 2016 | elitefranchise

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Franchise RESALES

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

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

DYNA001

Franchisee: Greater Manchester

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

Investment: TBC

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

Location: Greater Manchester

Established: 2006

Turnover: £240,000

This represents an excellent foundation upon which a new franchisee can continue to develop a substantial business which is very well known in the local area. The business has enjoyed regular growth with the majority of new clients coming from recommendations, walk in business and inbound leads generated from the support centre. The business has gross recurring fees of £300,000 and the franchisee is now looking to realise the asset built. For a franchise re-sale you only pay us a half franchise and training fee as we recognise that you will also be investing in purchasing the business. For further information please call us today on 0800 0188 297 or visit us at www.taxassistfranchise.co.uk/resales

TAXA001

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Franchise RESALES

Why Did We Choose OPC? I bought a ready-made business with an income from day one Mark Quinlan You can work around special occasions or holidays. No more 9 to 5! Mike & Fiona Davies All the mistakes have been made in the past and solutions put in place Paul Hodgkinson & Ione Brown Knowing I can ask for advice when required gives me confidence Penny Scott For more information call Andrew Cutler on:

01932 267 300 andrewc@originalposter.com

www.originalposter.com

Exhibit at Europe’s Fastest Growing

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New Start

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17th & 18th February 2017

Justin Livingston CFE

9th & 10th September 2016

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Richard Holden, Head of Franchising

Had a great show in London! Talked to great potential clients about expanding Coyote Ugly in India, UK, Ireland, Italy, Slovakia, and more!

‘‘

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FRANCHISE FOCUS

ActionCOACH

A fantastically rewarding and fulfilling business to be in... “I had a tough 2 years building this business and learning my new profession, but now I’m eclipsing my corporate earnings, in a 2 1/2 day week, so I get all the time I want with my wife & kids. I admire the calibre of people I get to work with & learn from & I’ve got the satisfaction of knowing that my clients are the biggest winners.” Lucas Vigilante, ActionCOACH Franchise Partner

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

Watch the opportunity video at: actioncoach.co.uk

Contact us: | Call: 01284 701 648 | Email: freedom@actioncoach.com | actioncoach.co.uk

ACTI002

Zip Yard

Are you ambitious to run your own business? Customer driven and well organised? Can you follow a proven business system? All Zip Yard franchises are finished to a distinctive specification and you are presented with a fully operational and fully supported business with trained staff and comprehensive brand marketing from day one.

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

Contact phone 01530 513307 | email: edownes@thezipyard.co.uk | www.thezipyard.co.uk

THEB002

The Interface Financial Group

IFG 50/50 is an affordable home-based franchise that provides short-term working capital to businesses by purchasing current, quality invoices at a discount. In IFG 50/50, all transactions are handled by both the franchisor and the franchisee. Both handle due diligence and funding. The franchisor, however, handles 90% of the paperwork, leaving franchisees free to handle the ‘people’ part of the franchise.

• Above-average ROI • Low overhead - home-based • Virtually paperless • All transactions worked together • Non-territorial & Portable

Phone 0845 834 0332 | Email: ifg@interfacefinancial.com | www.interfacefinancial.co.uk

INTE002

TaxAssist Accountants

TaxAssist Accountants is the UK’s largest network of accountants servicing the needs of small businesses and the self-employed. TaxAssist takes on both accountants and business/finance professionals as franchisees can employ accountants while they concentrate on building their business. With an established brand and known for breaking with tradition in an industry that has not experienced this before, TaxAssist Accountants stand out from the crowd operating from highly visible and welcoming shop front premises.

• 5 star franchisee satisfaction award for three years running • Awards from franchise and accountancy arenas • Accountancy fee banks are a saleable asset • In demand services • 1st class support and training

Contact Jody Macmillan | Call: 0800 0188297 | Email: jody.macmillan@taxassist.co.uk | www.taxassistfranchise.co.uk

TAXA001

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FRANCHISE FOCUS

Franchise Sales

FranchiseSales.com is the leading internet resource for franchising. Online since 2001, we have extensive experience helping prospective franchisees find and buy the right franchise and franchisors find and recruit the right people for their business. We aim to help you become an owner of your dream business, by making the process quick, simple and easy. Our clients are successful, wealthy and happy with their franchise business.

• High quality leads • High conversion rate • Number one in Google and other search engines • Global reach

www.franchisesales.co.uk

DYNA001

HomeXperts

The innovative HomeXperts franchise model enables you to start your own estate and letting agency working from home or a small serviced office. You will be trained to industry standards, whilst receiving continuous, comprehensive support and receive access to the awardwinning HomeXperts Franchisee Hub. By working hard and following the proven franchise model, you could secure your financial future by earning more than £25,000 in invoiced commissions in a month.

• Industry leading training package • iPad, Wide-angle lens camera, Digital measurer • 24/7 access to the award winning HomeXperts Hub • Access to all of the major UK property portals • Local website and a national branch page • Full back office support

Phone: 01905 678853 | Email: franchise@homexpertsuk.com | www.home-xperts.co.uk

HOME002

BBX UK

Over 60% of businesses have the ability to service more customers without increasing their fixed costs – this is called their SPARE CAPACITY. If their spare capacity is not used its value will be lost forever which costs UK businesses hundreds of billions in lost revenue annually. BBX is the largest Global Cashless Trade Exchange offering businesses a facility to turn their spare capacity into additional revenue without discounting. Building on 22 years of franchising we have opportunities in the UK offering:

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

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

BBX001

Original Poster Company

OPC is celebrating over 25 years as the world’s leading distributor of greeting cards, selling quality products through independent retailers and national groups such as Costcutter, Nisa, etc. Our network benefits from two growing UK industries – the greeting cards industry, worth £1.6 million (GCA 2015), and the convenience sector, up 1.5% from last year (IGD). Our franchise opportunities are established businesses with stock and customers.

• Low overheads, high margin product • Proven simple business model using Cloud and iPad based technology • Attractive to retailers - they only pay for what they sell • We don’t charge royalty payments or management fees • We offer a five year renewable franchise agreement • Comprehensive training and support • Full BFA membership

Contact Andrew Cutler | Phone: 01932 267 300 | Email: andrewc@originalposter.com | www.originalposter.com

THEO003

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FRANCHISE FOCUS

Now Boarding Pet Hotels

Do you have a passion for small pets? Do you want to work from home with flexible working hours? If this sounds like you, then why not open your own Now Boarding Pet Hotel. With our complete start up package, you could be ready to open for business within weeks! We provide you with everything you need to get started, and will help you every step of the way. Phone: 01322 471801 | Email: enquiries@nowboardingpethotels.co.uk | www.nowboardingpethotels.co.uk

NOWB001

Mobile Workwear

Mobile Workwear is an innovative new franchise opportunity, bringing our range of reliable, hardwearing products to the businesses that need them most. Our success is built on being ‘tested to work’, from the products we offer, to our staff, suppliers and partners. As a franchisee, you can unlock the potential within that brand to create a mobile retail business limited only by your ambition.

• Low investment <£5k • Low running cost • High earning potential • Unprecedented level of support • Centralised accounts, stock and delivery control • Discounted samples

Phone: +45 87244700 or 07769 882775 | Email: mobile.workwear@mascot.dk | www.mobileworkwear.com

MASC001

Shuttercraft

Shuttercraft offers premium wooden shutters in a market that is growing by 30% per annum. We put “customer experience” at the heart of everything we do and that is how we remain the market leader. Shuttercraft have invested heavily into new websites, new CRM systems and dedicated personnel to ensure our franchisees have every advantage when entering this growth market.

• High Profits • High Cashflow • Low Margins • High Referral Levels • Advanced Training Package • Multi-Level Business Support • Premium Product

Phone: 01692 280 505 | Email: sean@shuttercraft.co.uk | www.shuttercraft-franchise.co.uk

ARCM001

To advertise in this section please call: 0124 567 3690

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GET INSPIRED BY SOME OF THE UK’S MOST SUCCESSFUL FRANCHISORS Elite Franchise is the UK’s fastest-growing title for franchisees, start-ups and growing franchise businesses in the UK. A high-quality magazine, it’s packed with engaging content including interviews with the hottest franchises around, hints and tips to help aspiring entrepreneurs and columns from those in the know. SAVE £20 on the cover price delivered free to your door. Subscribe to the print edition and enjoy free access to the digital edition every month.

Receive 12 issues of the UK’s best new franchise magazine for entrepreneurs for only £20*

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September 2016 £4.50

BREAKING UP IS HARD TO DO How to avoid heartache when partnerships fall apart

elitefranchisemagazine.co.uk

SPUN CANDY

How James Ellender became a real-life Willy Wonka

August 2016 £4.50

WE LOVE PETS

Meet the franchise caring for all creatures great and small

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A REASON FOR BEING

The Steve Jobs management lesson franchisors must take to heart

SNAP-ON TOOLS

SHUTTERCRAFT The franchise sheds some light on its successful transformation

July 2016 £4.50

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COFFEE-BIKE

The mobile coffee shop serving up success on the streets

BRAVEHEART

PEARSON FERRIER

The estate and lettings franchise shares its approach to property

Should the Scots be fearless about franchising?

June 2016 £4.50

ALL IN THE FAMILY

Why franchising with a relative produces great results

SUIT THE CITY

elitefranchisemagazine.co.uk

May 2016 £4.50

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TRENDSETTERS What sectors are the best fit for franchising?

OUT THERE

PYJAMA DRAMA

Proving the global appeal of kids play

The franchise taking the pain out of weekend planning

The tailor is stepping up its sartorial success

Ensuring the world has the right tools for the job

GUINOT

Bringing the world scientific skincare

KEEPING BUSY To say Lisa Curteis is a hard worker is an understatement. In the early years of Rosemary Bookkeeping, its director was scarcely able to switch off – even when she went into hospital to give birth to her son. But the hard work has definitely paid off, seeing her head up an award-winning franchise network

TOP GEAR

For former professional rugby player Mark Llewellyn, tackling challenges head on is second nature. Thanks to this, his vehicle repair franchise Revive! UK is now entering the fast lane and is set to turn over £8.5m this year

SLICE OF THE ACTION

When Ian Christelow first came across ActionCOACH, he knew it was something he wanted to be part of. From one area development license in East Anglia, he has since grown the franchise into a network of over 150 coaches that helps companies throughout the UK

SHAPING UP Jan Spaticchia always wanted to head up his own business empire. Given énergie group currently turns over £26m and is on track to become the largest fitness chain in the UK and Ireland, it’s safe to say his dream has come true

ON SONG Angie Coates didn’t know what franchising was when she launched Monkey Music in 1993. Now, with 47 franchises under its belt, her pre-school music company is looking to accelerate its expansion across the UK

*Limited to new subscribers at UK addresses only. Please allow 28 days for delivery. Overseas mail: Europe £60; rest of world £95 Offer closes 31.10.16

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DISCOVERY DAYS

IFG operates regular Franchise Office Discovery Days. For those interested in a self-employed career that involves a world connected to finance and who have a business curious analytical mind, we hope they will enjoy spending some time investigating this fascinating franchise opportunity. There with you are co-attendees researching IFG; different ages, career backgrounds and perspectives...it all adds to a constructive, productive day. Right from the start, the heart of IFG has been to place its franchisees in a serious leadership position. Only with a network of skilled, committed and industrious franchisees can we correctly find, service and underwrite our small business clients who need prompt payment of their bills. We are proud of providing an ethical and sustainable source of fast finance to businesses. We’d be delighted if you wish to join us at one of our Discovery days to learn more.

taimoor milktaimoor milksheikh sheikh

Phone 0845 834 0332 Email: ifg@interfacefinancial.com www.interfacefinancial.co.uk ARCM001

Find out about our seminars and book your FREE place at www.franchise-seminars.info.

Ahead for Business Franchise Seminars

STEP INTO FRANCHISING

I am a franchisee & this is my McDonald’s

Ahead for Business

‘The best part of being a franchisee is the responsibility that comes with Ilooking am aafter franchisee & a large workforce. Givingis local a chance to this mypeople McDonald’s develop their skills, grow in confidence, progress their ‘The best partsomething of being a franchisee career – it’s I find is the responsibility really rewarding.’ that comes with looking after a large workforce. Taimoor, operates four restaurants Giving people a chance to in Southlocal East London develop their skills, grow in confidence, progress their career – it’s something I find really rewarding.’

What is franchising? How does it work? Can I be successful? All of these questions and more are answered at the NatWest Franchise Seminars. We will provide advice and guidance to help you identify and choose the right franchise, so that you can enjoy the rewards and freedom of being your own boss. You will be guided through our ‘Steps to Success’, an overview of the franchise industry, given financial advice and an insight into the operational and legal considerations of investing in a franchise.

Taimoor, operates four restaurants in South East London

The seminars are held regularly in Manchester, Birmingham and London.

Come and talk to us at our Insight Day in Elstree 22nd July 2016

02071 833 657

www.mcdonalds.co.uk/franchising

Come and talk to us at our Insight Day in Elstree 045116-250x148-CityAM.indd 1 22nd July 2016

INTE002

MCDO002 INTE002

30/06/2016 09:50

www.franchise-seminars.info I enquiry@franchise-seminars.info RBS001

www.mcdonalds.co.uk/franchising

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DISCOVERY DAYS

To find out 100% of the information about the award-winning HomeXperts model, book your discovery meeting by emailing franchise@homexpertsuk.com.

Interested Investors

A discovery meeting will explain the innovative franchise model in full, helping you to decide if HomeXperts is right for you. Discovery meetings are held around the country on a weekly basis, including London, Manchester and Worcester.

One of our franchise representatives will contact you shortly to introduce themselves and the opportunity. Provided you are happy we will send you some more detailed information for you to digest. We then arrange a Q&A over the phone and if all your questions are answered satisfactory we will then invite you into the office to meet the developers and give you a full presentation covering best, conservative and worst case scenarios. From there we cover the contract and provided you are happy we welcome you on-board. To find out more about this unique franchise opportunity, please contact us via any of the below.

If you have any initial questions, call the HomeXperts Franchise Recruitment Team on 01905 678853.

0207 608 5591 info@projectmglobal.com www.projectmglobal.com

Phone: 01905 678853 Email: franchise@homexpertsuk.com www.home-xperts.co.uk HOME002

PROJ001

IF YOUâ&#x20AC;&#x2122;D LIKE TO TELL POTENTIAL INVESTORS HOW YOU RUN YOUR DISCOVERY DAYS OR 1-2-1â&#x20AC;&#x2122;s PLEASE CALL: 0124 567 3690

to speak to a member of our team

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Visit us today to find your Dream Franchise www.franchisesupermarket.net

Franchise Opportunities with Franchise Supermarket ‘Franchise Supermarket is here to help you find the right Franchise Opportunity. Starting your own business can be a daunting process, so Franchise Supermarket aims to ease this process and help you become one of the 97% of franchisees within the UK that are achieving profitability. The Franchise Supermarket team wants to be more than just a directory - we aim to be the one stop shop for Franchise Recruitment!’

Franchise Supermarket provides YOU with • • • •

Detailed up to date franchise profiles Franchisee success stories The latest franchise news Upcoming franchise exhibition dates and franchisee Discovery Day dates

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Franchise Diaries Jane Maudsley, founder & managing director, Little Voices

Achieving a work-life blend When you love what you do, it becomes less about work-life balance and more about focusing on what’s most important – and avoiding the guilt

I

started Little Voices when my daughter was three months old and the circumstances were less than ideal. My husband had left me for someone else when I was pregnant and it hurt. A lot. But I was starting a venture that combined the things I loved: drama, singing, performing, helping to nurture children’s talent and building their confidence. It was my way of carving out a new life for me and my daughter and she’s been a part of it almost since day one, attending lessons and later on spending tme in the office. In the early days of starting a business, you have to accept that your life will be your work and vice versa. Entrepreneurship is about making sacrifices other people wouldn’t. But if you find something you’re passionate about that also gives you financial freedom, the idea of work-life balance becomes more foreign as your home and work lives intermingle. For me, it’s more about having a worklife blend that allows me to wake up every morning jumping out of bed and absolutely loving what I do. That’s the key to true happiness.

With the business success comes the guilt

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Managing the guilt But it’s not as simple as that, of course. With the business success comes the guilt. Fortunately, I’ve learned to manage the feeling over the years, which is always in relation to my daughter. I inevitably feel a pang of guilt if I have to leave her for a week to go away for business but I remind myself that my hard work is ultimately for her and I make sure that we have quality time together when I get back – without my job intruding. While I don’t have much time for hobbies, I do my best to balance my time between my work, daughter, partner and family. I don’t always get it right but I try to give them all my full attention when I do see them. Learning to say no To create that intimate bubble for the things that matter, you have to learn how to say no. One of the best things I did years ago was remove emails from my phone so I’m truly present when I’m with my family. I pride myself on doing what I say I’ll do and I don’t make promises I can’t keep. As a confirmed people pleaser, saying no can be hard. But I’d rather check my schedule and be sure I can manage something before committing. If I think I won’t be able to squeeze it in, I’d rather say no than let someone down at the last minute. 82

Creating your network Achieving balance is also about streamlining your life – and even your relationships. While growing my business, I’ve learned who my true friends are. They’re the ones who are still there when I emerge from long periods of radio silence. I’m not readily available for nights out, parties or holidays; time is precious and I need to spend it carefully. But that’s OK and my true friends understand my life. And as for those people who haven’t been able to accept the way I am, I’ve sadly lost touch with them. I rely on an amazing core team comprised of people in the office and my family, who understand and support me wholeheartedly. I couldn’t do what I do without them. I met my partner in the early days when I was starting to go down the franchising route and he’s always been my rock. He gets how hard I need to work and when I’m on the phone at midnight or sending emails through the night, he respects my work ethic. He knows that I won’t stop until we’re a household name and that to get there, I do

Achieving balance is also about streamlining your life – and even your relationships. I’ve learned who my true friends are need to make some sacrifices. We’re both aware that our lives are a little unconventional and wouldn’t suit everyone. But that’s OK because we’re a team and we both have personal and joint goals. Of course achieving the optimum work-life blend is still something I struggle with from time to time. But I’ve developed coping strategies and I ensure that it’s an important part of our company culture at Little Voices. I talk to all our franchisees about how I manage my time and how to prioritise effectively to avoid an onslaught of guilt. There’s no such thing as a perfect blend but identifying what matters, doing what you love and filling your life with people who support your goals is a good start.

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Inspiring, educating and supporting women considering or involved in franchising

The mission of the group:

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

3 target groups:

Women looking to become franchisees

Women business owners looking to expand through franchising

Existing Franchisors that have businesses suitable for woman franchisees

EWIF also....

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

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

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Elite Franchise Magazine October 2016