Elite Franchise Magazine Winter 2015

winter 2015

Eastern promise The halcyon days of Planet Hollywood are gone.

But parent company Earl Enterprises is now pinning its hopes on new brands, which Alex Garland hopes will take the Middle East by storm

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WINTER 2015

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GET INSPIRED BY SOME THE UK’S MOST SUCCES

OF SFUL FRANCHISORS

14

The Elite interview Alex Garland turns to franchising to accelerate Earl Enterprises’ growth

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Contents.indd 1

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32 52 New Year’s resolutions A plan to fight excess data and get into shape in 2015

56 Intelligent design

Franchisors should be extra diligent when it comes to intellectual property 7 Editor’s letter 8 Contributors 10 News & events 12 Talking point 64 Franchise diaries

25 One to watch

With over 120 years under its belt, Wilkins Chimney Sweep talks legacy

32 Hello and Dubai

What is driving the demand for franchises setting up in the UAE?

37 Rock enrol

A guide to avoiding autoenrolment pension woes for franchises

44 Success sells

What makes a franchise a hit with potential franchisees?

46 Slim pickings

The best person for the job is often hard to come by

50 People power

HR may not be much fun but it is vital for success in franchising Winter 2015 elitefranchise 5

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VOLUME 03 ISSUE 01 / 2015 SALES Harrison Bloor Senior Account Manager harrison.bloor@cemedia.co.uk Darren Smith – Account Manager darren.smith@cemedia.co.uk Samuel Darcy – Account Manager samuel.darcy@cemedia.co.uk EDITORIAL Hannah Prevett – Editor hannah.prevett@cemedia.co.uk Josh Russell – Feature Writer josh.russell@cemedia.co.uk Ryan McChrystal – Feature Writer ryan.mcchrystal@cemedia.co.uk Jade Saunders – Junior Writer jade.saunders@cemedia.co.uk Contributing writers Jon Card DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Rishita Devji – Intern Designer rishita.devji@cemedia.co.uk Dan Lecount Web Development Manager dan@cemedia.co.uk Marketing Kelly Dunworth – Head of Communications kelly.dunworth@cemedia.co.uk Claudia Laing – Marketing Manager claudia.laing@cemedia.co.uk Lucy Jones – Marketing Assistant lucy.jones@cemedia.co.uk CIRCULATION Malcolm Coleman – Circulation Manager malcolm.coleman@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk Colin Munday – Management Accountant colin.munday@cemedia.co.uk ADMINISTRATION Daisy Jones – Administrator daisy.jones@cemedia.co.uk DIRECTOR Scott English – Managing Director scott.english@cemedia.co.uk

Second time lucky You could forgive Robert Earl, the brains behind Planet Hollywood, for not wanting to go down the franchise route again. The restaurant’s fall from grace was partly down to over-expansion – a classic case of too much too soon. Earl’s right-hand-man Alex Garland admits in this month’s cover interview that franchisees may not have been subject to rigorous enough background checks and that some of the locations weren’t densely populated enough to support restaurants spanning 10,000 or even 20,000 sq ft.

Still, Earl Enterprises is once again pursuing franchising as a method of expansion, though this time for its newer brands – Buca di Beppo and Earl of Sandwich. This time though, Earl has the stellar Alex Garland to lead the charge into the UAE, where franchise deals have already been snapped up.

The UAE has proved fertile ground for many a British franchise. This month’s analysis (p32) explores how the UAE acts a gateway between east and west – and is a place where western brands are highly respected and sought after.

All things considered – Garland’s business acumen, a more cautious approach and solid partners – there is no reason Earl Enterprises’ foray into franchising in the Middle East shouldn’t be a solid gold success.

HANNAH PREVETT EDITOR

Circulation enquiries: CE Media Call: 01245 707 516 Elite Franchise is published by CE Media, 4th Floor, Victoria House, Victoria Road, Chelmsford, CM1 1JR Copyright 2013.

All rights reserved No part of Elite Franchise may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor.

Elite Franchise will make every effort to return picture material, but this is at the owner’s risk.

Due to the nature of the printing process, images can be subject to a variation of up to 15 per cent, therefore CE Media Limited cannot be held responsible for such variation.

cemedia.co.uk

Winter 2015 elitefranchise 7

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Jon Card

Card writes regularly for The Guardian and this month penned a feature about the complex world of HR in the franchising sector. He recently moved with his whole family from Birmingham to live by the sea in Brighton, which was an even more complex task. He now considers himself to be an expert not just in HR but also in logistics, negotiation, stress management and flat-pack furniture assembly.

Emilie Sandy

The photographer behind our illustrious shots of Earl Enterprises’ Alex Garland, Sandy has just completed her first term as photography lecturer at the City of Bristol. As if snapping for our fair pages and teaching future generations weren’t enough, she also recently set up her own children’s photography company Emilie Marsden Photography. She has more than enough experience of this, as can be seen from this shot of her son and favourite subject Freddie.

Jade Saunders

Saunders recently graduated with a degree in Journalism after three years of sun, sea and cider living in Cornwall.

After being pried away from the pasties, she returned home to join the team at Elite Franchise combining her passion for entrepreneurship and her love of writing. Rather appropriately, as our latest hire, this issue Saunders is writing about recruiting and why making the right employment decision can be make or break for a franchise.

Kate Lester

We’ve been very lucky to net former cover star Lester as our newest columnist; she’s been itching to share her insights about why getting into franchising was the easiest decision she’s ever made. Certainly the model will help with Diamond Logistics’ expansion plans, to expand from 20 to 40 sites in the coming year. But it’s not all work; over the holidays Lester flew her family out to Lake Tahoe for two weeks skiing. Better than being snowed under at work.

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TonyV3112 / Shutterstock.com

oneinchpunch / Shutterstock.com

Rotten luck for Subway, as the franchise has become one of the latest brands to come under fire in a food safety scandal in China. The US sandwich chain operates 489 franchises in China and one store in Beijing is under strict investigation after Chinese media reported that staff doctored expiration dates on ingredients. As a result, meat and vegetables were served way beyond their best-before date. The Beijing store is now under investigation by both Subway and food safety officials, however trade in other Chinese stores remains unaffected by the investigations.

WORDS: Jade saunders

The UK arm of TGI Fridays has been sold to private equity investor Electra Partners in a deal reportedly worth £225m.

The American-themed franchise chain that serves up meaty treats and cool cocktails in almost every corner of the country will see £100m injected from Electra to expand on the 66-store strong UK portfolio. “In Electra Partners, we are delighted to have found a long-term partner capable of supporting our growth ambitions as we look to further expand TGI Fridays’ share of the UK market,” said Karen Forrester, TGI’s UK chief executive. Thank goodness for that.

A toast to Pam Bader OBE, former Elite Franchise cover star, and Brian Lewis, founder of Cash Converters, after the British Franchise Association (bfa) bestowed upon them the highest honour by making them Companions. Only 18 Companionships have been awarded since the bfa formed in 1977, a triumph reserved for those who tirelessly work in the franchise sector. Simon Bartholomew, bfa chair, presented the prestigious award to the pair, undoubtedly setting the champagne corks a-popping. Take a bow, people.

Tough luck for patients and staff of Derriford Hospital after they were banned from ordering from a new Pizza Hut store that recently opened on the hospital grounds. The pizzeria opened its doors just 100 yards from the Plymouth hospital but hospital chiefs have prohibited their people from getting takeaways and has forbidden any deliveries, as it goes against their healthy eating guidelines. Patients and staff were advised to swap mouth watering pizzas for healthier options as they were steered towards the hospital’s smoothie bar.

That’s a big ask no matter how you slice it.

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Celebrations are in order: One Stop has opened its 75th franchised store. The diamond milestone was a feat in itself but the store that opened in Brownhills is the first to be opened in the town where the company’s operations centre is based. The store is franchised by Kay and Tom Baines who ran a Londis store for 15 years but have now switched to One Stop and will have their shop refitted this year. This year, the Baines’ will celebrate 25 years in the retail sector. Seems there are anniversaries aplenty.

Carphone Warehouse Business (CPWB)

scrapped its franchise trial less than two years in after the scheme failed to generate sufficient revenue.

There are nine franchises on the scheme that was launched in June 2013 and all are expected to be offered the opportunity to become affiliates. This is unlikely to soothe franchisees who were incensed after they received the bad news via email.

CPWB justified its actions by saying it was the only way to tell all the affected parties at the same time.

Riverford, the fresh

produce franchise, has given ‘meals on wheels’ a whole new meaning. Its Stevenage franchisees Russell and Vanessa Cook have teamed up with Bike Box Delivery to ensure customers receive fresh organic foods with an even lower carbon foot print.

The green-thinking business avoided traffic and parking fiascos to swiftly deliver produce without pollution.

Collaboration with Bike Box Delivery reinforces Riverford’s commitment to eco-friendly policies and this innovative delivery method epitomises the company ethos and the Cooks have received very positive feedback about their We all feel somewhat helpless in the face of the Ebola outbreak in Sierra Leone; the death toll is now higher than 2,400 and many cases could have been prevented with simple sanitation measures. Chemex, the hygiene franchise, has shown its support by donating several tons of hand soaps and high-level hypochlorite disinfectant to be airlifted to West Africa via the Scotia Aid charity to improve infection control.

Chemex hopes that its donation will help to control the spread of infection and protect health workers as well as encourage others to provide aid to Ebola victims.

upcoming events EWIF Regional Meeting January 27 Houses of Parliament, Westminster, London, SW1A 0AA bfa Prospective Franchisor Seminar February 24 TLT LLP, One Redcliff Street, Bristol, BS1 6TP

bfa Prospective Franchisee Seminar February 25 TLT LLP, One Redcliff Street, Bristol, BS1 6TP The Franchise Show Feb 20 - 21 ExCeL, Royal Victoria Dock, 1 Western Gateway, London, E16 1XL

EWIF Regional Meeting March 12 Blake Morgan New Kings Court, Tollgate Eastleigh, SO53 3LG

bfa Prospective Franchisee Seminar March 25 Metro Bank One Southampton Row, Holborn, London, WC1B 5HA

British & International Franchise Exhibition March 13 - 14 Olympia, Hammersmith Road, London, W14 8UX

bfa Prospective Franchisor Seminar March 26 Metro Bank, One Southampton Row, Holborn London, WC1B 5HA

A full event listing is available on our website: elitefranchisemagazine.co.uk/events Winter 2015 elitefranchise 11

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Let 2015 be the year of quotas

Room at the top Is 2015 finally the year to take quotas seriously as a means of getting more women into senior positions?

WORDS: Ryan McChrystal

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his month, Germany joined France, Italy and some Nordic countries in introducing quotas for women on corporate boards. The moves have been welcomed by some: there’s a lot of evidence suggesting the approach really does work, at least in Europe.

The UK has a real problem with equality at the top: men still overwhelmingly occupy the most senior positions. The government has its own voluntary target of 25% female directors on the FTSE 100 by the end of next year and it looks well on target. However, this is only a very small range of companies and many are concerned that 25% is too soft a target. Some still say that politicians should put their own house in order first before they can make any genuine strides to solving the problem at board level. After all, how many women are on any party’s front bench?

Women are very slightly more than 50% of the global population and they have been estimated to control about 70% of global spending as the key household decision makers in this regard. Women are equally as driven and talented as men and we need to see more of them at the top. But how? In the UK, there has been a lot of talk about quotas but so far it has mainly been hot air and the idea has never really gotten off the ground. Is now the time to adopt quotas and tackle the gender imbalance at the top once and for all?

Quotas, however unpopular in certain circles, remove the option for procrastination and excuses. They rapidly increase the participation of women in Professor Dianne areas of social endeavour where power is Bevelander Director of the Erasmus present and dominant coalitions exist that Centre for Women and have excluded women historically. They also Organisations create the tipping point that fundamentally and irrevocably changes the landscape.

For the last two decades we have been talking about gender-balanced leadership. The time has come to stop talking and to take decisive action. Although the benefits of diversity for strategic thinking, innovation and greater engagement of knowledge workers are widely accepted, amplifying the needed diversity through significantly increased participation of women remains nascent.

Let us not rehash the tired stories suggesting ‘quotas will prevent the best person from getting the job’ or that ‘quotas will stigmatise women as only getting the job because of gender rather than qualification’.

Take a look at senior appointments and ask yourself: “does the best person always get the job or does the well-networked member of the dominant coalition get the job because they have enough of the right competencies?” My ardent desire is that we stop blaming women and focus on creating an ecosystem in which both genders thrive. I say: let 2015 be the year of quotas.

Female workers should help each other Women’s nature is not adapted to the boardroom. Women become pregnant and Professor Christine cannot be relied on to be present inNaschberger company when it counts. Women only get professor of HR top jobs so that some sort of equality can be management, Audencia Nantes School of seen to be respected. These are just some of Management the views that persist where women and work are concerned. For some people the answer to such prejudice is a quota system. For others, imposing quotas simply serves to strengthen the stereotypes they are supposed to combat.

Even among researchers into the subject of women’s access to the boardroom there is no consensus on the question. Some see quotas as the solution; others say they serve to place less qualified and experienced female profiles in positions of responsibility beyond their skill sets. Within firms, it is just as polarised.

Research shows that women continue to get a rougher deal in terms of career advancement. Quotas can be one way of changing this but progress needs to be made on three levels: government, business and society. Work schedules need to be more flexible so giving women a greater chance to balance home and office life. And more firms should set up specific women’s networks which encourage female workers to help each other to reach career goals.

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Winter 2015 elitefranchise 13

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THE ELITE INTERVIEW

horiz Earl Enterprises, the company that owns 1990s sensation Planet Hollywood, has turned to franchising to bolster expansion of its newer ventures

I

n May 1993, London was gripped by Planet Hollywood fever. Following the success of the first outlet in New York’s Times Square, the UK capital was picked to house the new Planet Hollywood bar and restaurant – much to the delight of movie fans who turned out in their droves to witness the star-studded bash. Up to 250,000 spectators stood in queues snaking around London’s West End just to get a peak of A-list Hollywood celebrities who attended the opening, including the restaurant’s founder-investors Bruce Willis, Sylvester Stallone and Arnold Schwarzenegger.

The fans weren’t the only ones to get swept away in the hype. Founder Robert Earl, a UKborn entrepreneur, decided to capitalise on the brand’s initial success and expanded quickly – too quickly, as it turned out. When it went public in April 1996, the company’s share price was listed at $32 – by 1999, it stood at less than $1. The company has also gone bankrupt twice.

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The cause? Too much, too soon, suggests Alex Garland, who as managing director of Earl Enterprises, Europe Middle East & India, is Robert Earl’s right-hand man on these shores.

“Planet Hollywood opened some franchises in the 1990s. Some did work but some didn’t,” he explains. “It was so hot in the 90s and it grew so rapidly – so many people wanted a Planet and they were being opened in cities that weren’t right; they didn’t have enough people in the places to open there.” After all, these are big restaurants – on average measuring 10,000 - 20,000 sq ft – so they needed a critical mass to be successful.

What’s more, franchise owners weren’t necessarily vetted closely enough, he admits.

“They were probably being franchised to people who didn’t have enough background or experience to run such a huge restaurant,” says Garland. “I think that led to the problems.”

Needless to say, when Garland joined Planet

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THE ELITE INTERVIEW

ons People said it was past it.

But in some ways that’s a challenge

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THE ELITE INTERVIEW

Hollywood in 2002, it was a far cry from the roaring success it had been in the 1990s. But rather than dissuading him from joining, he was galvanised by the prospect of helping right the ship. “It was struggling, big time. People said it was past it. But in some ways that’s a challenge.”

It wasn’t the first time he’d been in a turnaround situation. In his previous role as food and beverage manager at Selfridges, he’d been brought in to shake things up. “A new team had been brought in to make improvements. My job at the time was to start afresh with new management, new staff and make some tough changes as quickly as possible,” he explains.

After leaving the iconic department store in 2000, he joined Atlantic, which was once the coolest bar and restaurant in London’s West End. “The Atlantic wasn’t too dissimilar because it was a little bit tough when I got in there, trying to straighten the ship. I’d been exposed to some of those elements before, so I knew it was going to be tough [when I joined Planet Hollywood].”

Earl had been forthcoming about the challenges facing his iconic restaurant brand and was fastidious about selecting its new UK boss: “In the end, I ended up having about five interviews with him and various other people. He took it very seriously... I think Planet Hollywood is very close to his heart,” says Garland. “Robert certainly said it was a challenge, that London wasn’t performing [very well]. It

I’d been exposed to some of those elements before, so I knew it was going to be tough

was still busy, still a name but not great. So there was a challenge there, but I felt I could make a difference. Plus, I liked him. I liked the way he spoke. He’s an amazing character, [he’s] highly intelligent.”

A few months after joining in 2002, Garland began plotting a facelift of the central London venue. “We put a bit of money into it and made it look a bit cleaner. We added a DJ booth, we changed the menu, we brought some new kitchen equipment in. We also changed some of the managers and staff and we added a nightclub in the basement,” he explains. In 2009, when the lease ran out, Planet Hollywood moved from its home on Coventry Street to Haymarket.

The changes had the desired effect. “I worked very hard on it but I loved it and gradually we righted the ship. I’m not saying we ever got back to the halcyon days but still today, as it always has been, every Saturday you can’t get in. There are queues out of the door.”

A primary focus for Garland when he was spearheading the facelift of Planet Hollywood was on standards. “Robert worked very closely with me on trying to get the service right, get the ethics right and get the atmosphere right,” he says.

Having got Planet back on an even keel, Garland was rewarded with being given a broader role within Earl Enterprises, the parent group created

by Robert Earl in 2013. The new company encompassed Planet Hollywood as well as the sandwich bar chain Earl of Sandwich and Buca di Beppo, family style Italian eateries. Garland was charged with replicating the success the newer brands had seen in the US. It was a tall order: Buca di Beppo is well established with 100 restaurants across America and the most successful Earl of Sandwich outlet at Disneyland in Orlando reportedly turns over $10m (£6.6m) annually.

“My role for the last 18 months has been

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THE ELITE INTERVIEW

developing our brands outside of America,” he explains. So far, the task has taken him predominantly to the Middle East, where there has been considerable interest in Earl Enterprises’ wares. There are currently two major deals on the table: Buca di Beppo signed a franchise agreement with the Gulf General Investment Company (GGICO) to open ten restaurants across the UAE. The first will open in Ferrari World, Abu Dhabi, in late February, with two more sites in Abu Dhabi and Dubai to follow this Spring. Earl of Sandwich is in on the act too: the sandwich chain signed a franchise agreement with The Palma Group, the Qatari hospitality group, to open five restaurants. The first will open in the Medina Central Mall in Doha, Qatar, this year.

Garland’s foray into franchising with Earl Enterprises is his first. “I didn’t know a lot about franchising in the early days,” he admits. “I knew a bit about it in terms of the operational – helping to get them open – but I hadn’t been part of any deal. Now it was me from A to Z.” The key was to solicit the advice of industry experts. “I spoke to them and said, ‘tell me how you do this’. I watched others and learnt.”

His own experience opening and running restaurants stood him in good stead too. Garland has lived and breathed the hospitality industry since he was a twinkle in his father’s eye.

Garland Senior worked in luxury hotels and was the one-time general manager of the Churchill Hotel London, now the Hyatt Regency. Having decided his own future was more likely to lie in food and beverage (F&B) than hotels, Garland worked as a chef at the Savoy and was also a manager at Cafe Rouge during the chain’s meteoric rise. This means he was a good judge of the type of people who should be involved in the starting and running of a restaurant.

“I did know from looking at owners and operators, if they were not going to be good or because they don’t have a background of culture of being in F&B,” he says.

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THE ELITE INTERVIEW

Having had his fingers burned with the franchising of Planet Hollywood (to the tune of $1bn, according to some reports), it’s no surprise that Robert Earl was a little nervous about treading the same path with his new companies. “He’s definitely careful about it,” concedes Garland. “But in the Middle East, especially the UAE, Dubai, Abu Dhabi, Qatar and Saudi, people are into brands. They love brands. Whether it’s Rolls Royce, BMW, Mercedes or a restaurant [brand],” he says.

The family-friendly nature of Buca di Beppo also plays well in the Middle East, he adds.

“If you eat Middle Eastern food, it’s all about sharing and Buca is a similar concept. And in some countries, you can’t drink alcohol so the entertainment for a lot of people is eating out as well as things like shopping.”

As for Earl of Sandwich, the company’s franchising future may be a little closer to home. Its first London store, near St Paul’s Cathedral, closed its doors in April last year.

Garland claims it was a good base to get the products and processes right before opening its huge Disneyland Paris store in 2011. But he learnt a lot about location too. “What we found was that it was the busiest place in the street at lunchtime, with queues out of the door, but in the afternoons and at weekends we couldn’t get enough trade.”

Still, Garland is optimistic about Earl of Sandwich’s future in the UK. The company is now looking at travel destinations, such as airports and motorway service stations, as possible locations for new stores. And he’s not ruling out having another bite of the cherry in London, either. “I do think if we put one in Leicester Square and it was open 24/7, it’d probably do very well,” he muses.

While the first few sandwich outlets will be owned by Earl Enterprises, this is just until the formula is perfected, says Garland. “Would we franchise the UK? Yes, we would – but we want to get it up and running first.”

It certainly sounds as though Garland has plenty on his plate but having a great deal of autonomy was what attracted him to working with Earl in the first place. Just how much guidance does he get from his boss? “I’ve learnt so much from him,” says Garland. “He’s definitely made me more commercial when it comes to sales and marketing and PR. He’s taught me a lot on that side of it. He’s a genius.”

If you eat Middle Eastern food, it’s all about sharing and Buca is a similar concept

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EWIF awards countdown begins!

The countdown to the Encouraging Women Into Franchising (EWIF) awards has begun and this year we are celebrating an amazing 5th year! Sponsored

by NatWest, we’re planning a superb awards day in London on Tuesday May 12 Last year’s winners were outstanding so we’re looking forward to seeing what 2015 brings.

This year’s categories are: • New Woman Franchisee of the Year sponsored by Making Money Magazine • New Woman Franchisor of the Year sponsored by McDonald’s Restaurants Ltd • Woman Franchisee of the Year sponsored by The Franchise Show • Woman Franchisor of the Year sponsored by Franchise Finance • Woman Service Provider of the Year sponsored by Elite Franchise • Woman Franchise Employee of the Year sponsored by busibricks Franchise Manager • Young Woman in Franchising of the Year sponsored by No+Vello • The Outstanding Contribution Award sponsored by NatWest

The contenders for the 2014 awards were all extremely strong and the judges really struggled to pick just one winner out of the entries.

EWIF’s primary focus is to support women who are looking for a route into the franchise industry. Our remit is threefold: to encourage women to consider buying a franchise, to encourage business women to franchise their existing operations and to help franchisors attract more women to their networks. We are a not-for-profit organisation run entirely by volunteers, providing advice and guidance to anyone looking at trying to break into the franchise industry.

Lisa Suswain, managing director of Wagging Tails, bagged the Coconut Creatives Woman Franchisor of the Year award at the 2014 EWIF awards. Suswain launched her franchise in 2007 after her career as a professional ballet dancer was cut short prematurely. She took on a few office jobs in the year after but found that she was missing a career doing something she was truly passionate about.

“I think I won my award because of the commitment I’ve shown to developing Wagging Tails, both through our bespoke systems to improve our franchisees businesses and save them time through to our increase in social media presence. All that was implemented had a positive effect on the franchise

Lisa Suswain, Wagging Tails

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ADVERTISING FEATURE

Group shot of winners from 2014

network and I hope that this was clearly indicated in my award entry along with my passion for what I and my franchisees do,” explains Suswain.

“I was totally overwhelmed when I won. To be shortlisted alongside such fantastic and, in most cases, far more experienced franchisors than myself was a huge honour. To then win was a huge boost and pat on the back for me. From a business point of view we have benefitted from extra press attention and prospective franchisees have told us they find it reassuring to know they are considering joining a franchise network with award success,” Suswain explains.

Suswain’s passion for her business was one of the main reasons for winning the award. The judges recognised that she is clearly trying to be an ambassador for her industry on all levels and her business is her passion. Suswain has grown her franchise network to nine franchisees since she launched in 2007 and each one of her franchisees is now enjoying great returns.

The win of an award by one of her franchisees at the same awards ceremony is testament to Suswain’s passion and hard work.

Clair Slingo, owner of Wagging Tails

Guildford, scooped the Bartercard Woman Franchisee of the Year award. Slingo was put forward for her award by Suswain because Suswain wanted her to be recognised for her hard work and dedication not only to her own business but the franchise network as a whole.

Slingo’s behaviour and attitude embodies the

From a business point of view we have benefitted from extra press attention and prospective franchisees Lisa Suswain, Wagging Tails

rationale of franchising. Each franchise is a network of like-minded people who want to have their own business but also the help and support of a structured system.

“In addition to being a fantastic and very successful representative of the business in

her territory, Slingo let us know that she was very keen to help with the development of the franchise. She put in a huge amount of time to help us test our new CMS system as we adapted it to fit our franchise system. In addition, her role in training new franchisees has given them a fantastic insight into the business as she shows them how a Wagging Tails franchise works on a day-to-day basis,” explains Suswain.

“We wanted to showcase not only Clair’s success but the way we work and encourage our franchisees to work together. Wagging Tails really is a team effort, all franchisees share best practice and Clair was a shining example of this,” adds Suswain.

Sally Anne Butters, national co-chair for EWIF explains why the awards are such a great event to get involved in: “Our award finalists, winners and sponsors received record recognition across the franchise industry, their business sectors and in the media for their achievements last year and, in the 5th year of our awards, it’s only going to get bigger.”

If you’d like to find out more about entering the EWIF awards this year then applications are open, just visit our website www.ewif.org Winter 2015 elitefranchise 23

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BRISTOL OFFICE: 1 STRAITS PARADE l FISHPONDS l BRISTOL l BS16 2LA BRISTOL OFFICE: 1B CRANBROOK ROAD l REDLAND l BRISTOL l BS6 7BJ LONDON OFFICE: 145-157 ST JOHN STREET l LONDON l EC1V 4PW

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ONE TO WATCH

CLEAN SWEEP I

WORDS: JOSH RUSSELL

t’s rare one comes across a franchise with quite as rich a heritage as Wilkins Chimney Sweep. Whilst most franchisees buy into a franchise because it is a tried and tested model, few have the opportunity to buy into a business that is over 120 years old. The oldest known record of the business is a photo of the founder Tom Wilkins taken way back in 1895. “We were given that along with an invoice that was raised at the time,” says Louise Harris, franchise director at Wilkins Chimney Sweep. “The business could well be older but that’s the oldest known provenance.”

The quintessential family business, Wilkins Chimney Sweep was passed down from father to son, travelling from Wilkins to his son Bill, before being passed on in turn to Bill’s son-in-law Frank Shurey. When Shurey came to retire in 1998, he had to look outside the family to find someone to take on the century-old business and was fortunate to find a buyer in Harris’s husband Peter, hereto Shurey’s financial services advisor. “Peter had been doing work for him on the financial side and then declared an interest in potentially taking the business on,” says Harris.

Wilkins Chimney Sweep’s long heritage was certainly part of the appeal for the new owners but they were aware that taking on a business that held such long-running associations meant walking a tight-rope. “We often meet people in our neighbourhood who will say ‘my grandma used you’ or ‘I remember seeing you when I was a kid’,” Harris says. “There is an element of keeping something precious going.” But while keeping this connection alive was vital, being able to ensure the business’s ongoing commercial viability was just as important.

“That was the approach that Peter took: ‘we’ve got to operate this as a commercial model’,” Harris explains.

Peter had plenty of experience of running commercial concerns, having a background in both retail and financial services, which allowed him to work out a model that would help the business expand. “He had a fairly good commercial understanding that you had to be able to do a good day’s work sweeping, year round and develop the financial model such that you’re following a decent process,” says Harris. He developed this on his own until 2006 and then took on his first employee.

We often meet people in our neighbourhood who will say ‘my grandma used you’ Louise Harris, Wilkins Chimney Sweep

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ONE TO WATCH

Tom Wilkins, (L), founder of Wilkins Chimney Sweep, circa 1895

Developing the business hasn’t been without hitches along the way however. With Harris herself taking on the accounting and an additional employee helping out with the admin, Peter trained up the business’s second sweep on everything he needed to know on running a sweeping operation. But this ended up backfiring on them. “At the time, his contract didn’t have a restrictive covenant and so he left to set up on his own,” say Harris. “That was a painful lesson for us.”

Fortunately, they learned from the experience and this has helped the iron out some of the kinks in the process.

Chimney sweeping is very much a technical skill and Wilkins Chimney Sweep has worked out a firm process. Once a sweep has checked the chimney is in tact, they will cover the fireplace and use a vacuum to ensure the soot will be collected before entering the chimney. “They work blind in the hole,” says Harris.

“That’s the skill concept; it’s about being able to feel where the brush has come through different runs in a chimney.” After this the sweep will check the brush has cleared the chimney before continuing their work.

“There’s quite a tradition around that; mums typically liked the kids to go out and have a look and see the brush coming out,” she continues. “It’s fairly iconic.”

There is an element of sensitivity around working in a customer’s home Louise Harris, Wilkins Chimney Sweep

Skills-led businesses lend themselves particularly well to franchising and this is why Wilkins Chimney Sweep has chosen the model to help it expand. And they certainly weren’t lacking in prior experience of the model. “I had been a franchisee and had gone on to work for the franchise after selling my franchise,” says Harris.

“I had a little bit of insight but a little bit of knowledge is much more dangerous than no knowledge.” They sought out the help of Clive Sawyer of Business Options; Harris admits part of the benefit of external help is having a third party as counterpoint to her and Peter’s single-mindedness. “We had to have somebody who had enough gravitas and enough clout to just say to us ‘you’re wrong; this is how it has to be’.”

With the help of Sawyer, as well as the shared practice picked up from the British Franchise Association, Wilkins Chimney Sweep now has fully developed its franchise model and currently has ten franchisees on the books. But what is it that makes a good sweep?

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ONE TO WATCH

Sweeps work blind; it’s about feeling where the brush has come through the runs in a chimney Louise Harris, Wilkins Chimney Sweep

Harris believes that, beyond being able to pick up the technical skills, there are two factors that make a good Wilkins Chimney Sweep franchisee. “First of all the person we’re looking for really is somebody who’s fit and able, with a business mentality,” she says. Obviously, more than anything else, a franchisee has to be a business owner because they are going to be responsible for their own livelihood. “If somebody hasn’t got the courage to ride the business properly, to set their pricing assertively and to be assertive networkers then I’m not absolutely sure that they’re going to succeed,” she says.

But beyond being technically able and business minded, Harris emphasises that a good sweep has to be a people person. “There is just an element of sensitivity around what you’re doing, not least of course because you are working in a customer’s home,” says Harris.

Franchisees need to be able to appreciate that some customers may be rather vulnerable; Wilkins Chimney Sweep has worked with the Home Instead care franchise to provide an education programme to help franchisees treat customers suffering with dementia with care and compassion. “There is every chance that our customers might not have seen somebody for a while,” Harris says. “It’s that interaction with them that is really important.”

In light of this, it’s hardly surprising that Wilkins Chimney Sweep proves to be such a hit with its customers; on Checkatrade, the listings and review service for tradespeople, its franchisees receive average ratings of either 9.9 or ten out of ten, showing just how highly its personal touch rates with homeowners. But this doesn’t mean that the franchise is prepared to rest on its laurels and it’s constantly trying to improve its offering for customers and franchisees alike.

A specific issue it has been trying to address is ensuring sweeps are able to find work and keep their hand in throughout the year, which can be a real issue in an area like sweeping that is traditionally viewed as seasonal work.

“The challenge with chimney sweeping is that if you didn’t do any driving of the business into other times of the year, you would only really be busy between September and November,” Harris says. This meant the business had to find ways to extend the service during the quieter months.

One way in which Wilkins Chimney Sweep has been able to extend its offering is by doing more roof work for its customers, alongside sweeping. “We fit cages, caps and cowls and we take out birds nests as well from chimneys,” says Harris. “Some of guys do other things like flashing and repointing where they’re confident.” However, it became clear that there was still a period around the start of summer in which the sweeps wouldn’t have enough work, leading Wilkins Chimney Sweep to last year launch a new power cleaning service.

“It’s essentially service deck and patio cleaning,” Harris says. “It boosts the guys’ income stream in the quieter months.”

Beyond this, Wilkins Chimney Sweep is aiming to double the number of franchisees it has within the next two to three years.

It has also been lobbying around issues that impact the sweeping service, aiming to boost the industry for its sweeps. “I had breakfast recently with our local MP to talk about trying to get the VAT on the sweeping part of what we do abolished because it’s a safety service,” says Harris.

Lastly, it has been trying to tech up its franchise. “We’re going to try and put more technology in the vans, which hasn’t been possible so far because carbon and technology don’t mix,” says Harris. It’s also looking at automating its processes a little more although Harris is keen to stress that this won’t stop it being very much a people-led business. “Our core is always customer service,” she says. “That’s what we’re all about.”

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ADVERTISING FEATURE

Dynamic and recession-proof high-street franchise The ZipYard is the fastest growing garment alteration franchise in the UK. With distinctive branding and a well-planned shopfit to minimise square footage for maximum profit, the opportunity provides owners with a business that is welcome in any high street

O

fficially launched in Britain by The Bardon Group in 2011 growth has been very strong and the company is well on the way to achieving its first target of opening 50 centres in the UK. The business provides a much-needed service and has a real role to play in the rejuvenation of the UK’s high streets.

New openings are well supported by local dignitaries including mayors and MPs notably the Chancellor of the Exchequer, George Osborne who officially opened the Wilmslow ZipYard in 2013.

The Bardon Group runs three other wellknown franchise brands – Recognition Express (est. 1979), ComputerXplorers (since 2005) and Kall Kwik (first franchised in 1979) and has a management team that is long established in the franchise industry.

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 in the ZipYard’s signature eyecatching yellow and black colours.

From dress re-styling and taking in or letting out to bridal-wear fitting or formal wear alterations, the ZipYard provides convenient, speedy and cost effective clothing alterations and repairs.

The ZipYard franchise package is a total turnkey operation, comprising a complete shop fit, state of the art machinery, computer systems and a comprehensive marketing package which 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, 34, opened England’s first ZipYard franchise in Altrincham in 2011, which was 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,” said 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.

“We went to meet Nigel Toplis, the franchisor, and we visited a centre in Wales.

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ADVERTISING FEATURE

“Being your own boss is hard work but very gratifying. Having the opportunity to make your own decisions is very satisfying but knowing you can rely on the franchise group gives you the confidence to approach situations with ease and a shared experience” Kevin Old, The ZipYard in Bournemouth

limb. It’s been teamwork from day one.”

“I would definitely recommend the ZipYard to other potential franchisees. I’m learning all the time and it’s such a sociable business. I really enjoy talking to the customers and I get such a feeling of satisfaction from seeing how happy they are when their clothes fit properly,” she added.

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 regional seasonal activity on behalf of the ZipYard to raise awareness and generate footfall to the centres.

We were impressed by the professionalism of the franchise. The brand is very strong and the shop fit is amazing, from the fitting rooms to the equipment and layout. They really know what they are doing and can cater for every kind of alteration and repair on site.”

Training & Support

All franchise owners have a two-week comprehensive induction programme that covers business practices, computer systems, running a centre, marketing and promotions, and recruitment. Part of the training takes place in an existing centre that is up and running to provide a proper hands-on

experience. Every aspect of the set-up from finding premises to launching and promoting the centre is fully supported by the franchisor.

Once up and running the support continues with additional training, business and product development work, on-going business advice and planning, marketing and PR. Jill Phillips, 46, set up the ZipYard in Basingstoke in May 2012 after being made redundant 8 months previously. “The whole team has been fantastic,” said Phillips. “From the training, which was very hands-on, to the huge level of support I’ve had, it’s all been great. Although it’s my business and the buck stops with me, I’ve never felt alone or out on a

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

Winter 2015 elitefranchise 29

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ANALYSIS

CROSSING THE DESERT

A steady flow of franchises are setting up shop all over the UAE, especially in Dubai. But what is driving this demand to do business in the emirates?

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ANALYSIS

WORDS: RYAN MCCHRYSTAL

S

ince its inception, the UAE, a federation of seven emirates including Dubai and Abu Dhabi, has gone from nothing but vast desert land and small local trading communities, to having some of the most fertile areas to set up shop in the world.

The country’s most populous city, Dubai, is undoubtedly the business hub of the Middle East, with access to 2.2 billion consumers. Its location and timezone makes it is the perfect gateway between east and west.

However, there is more to Dubai’s success than mere geography. With 80-85% of its 2 million population made up of expats from around the world, it is a melting pot of different cultures on par with an early 20th century New York. It has lifestyle appeal and investment incentives to boot and there is great demand for western brands; if you walk along the Dubai International Financial Centre (DFIC), you’ll be spoiled for choice for western coffee brands; do you prefer Costa, Caribou Coffee or Caffè Nero? Or maybe you’d prefer a spot of lunch at Yo! Sushi or Gourmet Burger Kitchen. And, at the end of the day, you can work it all off at any number of Fitness First gyms.

According to Nizar Lallani, CEO of Antal International in Dubai, a franchise of the British company dedicated to discovering and recruiting talent: “When you have people from so many different cultures, backgrounds and countries, they usually look for brands they know and so the UAE is a very attractive place for franchising, especially from the western part of the world.”

UK companies have a particular advantage.

“Of western expats, Britons are the most numerous, and as British companies started early in their inroads into this part of the world, they have great presence in terms of brands, products and services,” Lallani says.

Although the UAE economy was traditionally built on oil, with the influx of these western businesses, the main sources of revenue are now tourism, aviation, real estate, transport and financial services.

Franchises from the UK can also rest assured that if they extend into the UAE, the quality of

Dubai is the obvious jewel in the crown Andrew Walters, Pitman Training

potential employees is top notch. Being in the recruitment game, Lallani says: “Within the country there is a good availability of talent, but at the same time, when we pitch UAE positions around the world, people are more than willing to accept a position here – it’s an attractive destination for everybody.”

The only drawbacks Lallani can see are that things don’t move so quickly in the UAE as they do in Britain and set-up costs can be a little on the steep side too. “In the UK you can set up a business in a few hours but here, while still a straightforward procedure, it is a little more lengthy, approval can take anywhere

between two and four weeks,” he says. “The cost of doing business is also higher but this is due to the higher standard and therefore cost of living.”

As if you weren’t already sold on Dubai being a top destination for your franchise, it is also home to over 20 ‘free zones’ catering to various industrial and business clusters where foreign investors can enjoy 100% foreign ownership of their companies – as opposed to the rest of the city where you need a local sponsor to hold a majority stake in your business. The absence of income tax for both mainland registered companies and those registered in the free zones remains one of the biggest incentives for foreign companies establishing in Dubai.

While free zones are great in terms of setting up businesses, most companies will instead opt for having a local partner – and there are many eligible and willing local entrepreneurs. They must own at least a 51% stake in order to take advantage of doing business across the whole of Dubai.

Although finding the right people to work with can be a lengthy process, companies don’t seem to mind the wait. Pitman Training, a franchise offering flexible training solutions, certainly doesn’t. It has had a presence in the Middle East but moving into the UAE is something it wants to get right. According to Andrew Walters, the company’s franchise sales director, it is keen to take the leap within the next 12 months. “If you look at the region in terms of where is most modern, forward thinking and outward facing, the UAE is right up there,” he says.

Given the diverse nature of the UAE as a

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ANALYSIS whole, Walters wouldn’t be keen on giving away a master franchise because of the huge potential among the different emirates. “The financial potential in Dubai – the obvious jewel in the crown – alone is huge but in order to exploit it properly you need the right people on board,” he says.

Being a British brand in the training sector, Walters is confident of success. “There’s a perception that ‘Made in Britain’ is a stamp of quality, particularly around education, which is one of the best UK exports and Pitman has some of the top names on board, including Oxford and Cambridge [universities].”

In the UAE, the more upmarket you are, the higher your chances of success. “It’s very glitzy and glamorous – everything they do is what everyone else does times ten,” says Walters.

One company that fits the bill is Goldgenie, the franchise offering consumers the Midas touch; it’ll turn everyday items such as your iPhone into gold, rose gold or platinum. “The UAE is a territory of discerning individuals who can afford to purchase luxury products, which is good news for us,” says Frank Fernando, company director at Goldgenie.

“Internationally people do like to know quite rightly that they get good quality when they buy British.”

As with Pitman, Goldgenie is keen to do business in the UAE. Speaking of the region

generally, of which he has a lot of experience, experience franchising brands into the UAE. Fernando describes business dealings as “fair “They will know where the risks lie and how and honourable”, especially when compared to to mitigate them, understand the culture other parts of the world. “Given the nature of and the marketplace and be able to advise on our business, we are targeted by a lot by fraud where your brand fits, and help you to find the but I can count on one hand the amount of right locations and/or master franchisees, if times this has been a going down the master problem in the entire franchising route,” says Middle East,” he says.

Pip Wilkins, head of “On the other hand, operations at the bfa. there are certain The bfa also countries, which will works with the US remain nameless, that Commercial Service we are much more in Abu Dhabi to diligent with.” help UK franchisors If this gem of the looking to expand Middle East is for you, into the Middle East. the bfa has some tips.

A free marketing Although it focuses option is on offer to Nizar Lallani, Antal International on the UK market, franchisors targeting including companies the region or already coming here from franchising there and overseas, it recommends firstly that franchises looking to increase their brand visibility to any looking to the UAE take the right advice from prospective franchisees. a properly qualified and suitably experienced There are no signs of the inflow of UK professionals in order to secure their business franchises into the UAE letting up anytime during expansion. This includes advice soon. With such high competition and from a franchise solicitor with expertise in elevated running costs, the UAE may appear international expansion. to be a tough nut to crack at first but with the Franchises may also wish to contact an right preparation, there is no reason for UK international franchising consultant with brands not to thrive.

The UAE very attractive for franchising, especially from the west

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FINANCE

Auto-enrolment pensions will soon roll out to all companies with between 30 and 50 staff. Franchises have much to consider to make sure they don’t fall foul of the new regulation

I

WORDS: Ryan McChrystal

n order to enhance personal pension funding, the government has drastically changed the laws and regulations around pension provisions supplied by employers.

Auto-enrolment (AE) should be viewed as a great opportunity for businesses to help support their employees. It is being staged out over a period of six years, which started with the largest employers in 2012. Following a fairly successful start among bigger firms, it will roll out to all businesses that have between 30 and 58 employees – which will undoubtedly include many franchises.

By now most staff are likely to have

Action Stations

heard about AE in the media but as an employer it’s your legal duty to make sure they know enough. If you haven’t already, now would be a good time to start raising awareness about how the changes will affect staff. You should also know that all employers are legally required to automatically enrol certain staff into a pension scheme and make contributions.

The Pensions Regulator has already issued its first fines to employers for not meeting their duties so it’s important for franchises to ensure that they are fully compliant with the law.

For many

companies, the staging date at which they are expected to enrol eligible employees is fast approaching. Companies should find out theirs as soon as possible in order to keep themselves on the right path. This is something that can be obtained easily from the Pensions Regulator website by entering your PAYE reference number.

It is important not to miss your date as this could land you in trouble. “Non-compliance could lead to the regulator to issue fines up to £10,000 per day for the largest employers,” says Karen Bexley, director and head of employment law at MLP Law. Employees are only eligible for autoenrolment if they meet certain age and earning criteria. “As franchises often employ a diverse workforce with different pay

Non-compliance could lead to fines up to £10,000 per day Karen Bexley, MLP Law

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FINANCE

and employment contracts, determining whether certain members of staff qualify, or the correct amount of employer contribution, can be a real challenge,” says David Foskett, managing director at ADP UK & Ireland, a supplier of payroll, time and attendance, and HR outsourcing.

“Implementing auto-enrolment can be a complex process, requiring the knowledge and input of various functions. By having a dedicated project team in place involving departments such as finance, payroll and It’s critical to find a partner that can not only legal, as well as franchise owners and external support the AE process but also work with you consultants, businesses will be able to ensure to ensure that your employees are benefiting a successful transition. This also supports from the scheme. them in communicating the changes to staff “The key to implementing auto-enrolment and ensuring that successfully lies in the employees understand planning,” says Graham how the new Wrightson, pensions regulation affects them partner at international and what their options law firm Stephenson are,” he adds.

Harwood LLP. Employers If you have an have found they needed existing pension to start preparing up to a scheme for your year before their staging workforce you should date, so you should start Graham Wrightson, check with your making plans in good Stephenson Harwood LLP provider to see if time. Although AE began you’re able use it for AE. If you need to open in October 2012, it rolled out with bigger a new scheme, make sure that you approach companies first, so there is still time for SMEs the provider in good time because they and franchisees to get prepared. will be taking on thousands of employers Before staging, find out who to enrol. You in the coming months and there could be will need to assess all your staff for eligibility delays. “To comply with the new regulation, but you may not have to automatically enrol franchises should not only find a suitable all of them. Communications to members scheme provider but also put systems in place are subject to prescriptive and detailed to monitor jobholders, who may become requirements and time is required to ensure eligible because of earnings or age in the they are fit-for-purpose. “At the end of the day, future,” says Foskett. For example, employees the legislation is complex and sets down strict under 22 and those receiving variable pay timings and specific standards; experience has require careful attention. “Reviewing payroll shown that it is easy to become non-compliant and administration systems at an early stage without even realising it and companies can help franchises to ensure that they are should take heed that the regulator is starting compatible with these new requirements,” to flex its muscles to ensure compliance,” Foskett says.

Wrightson says.

The key to implementing AE successfully lies in the planning

Clare Abrahams, head of auto-enrolment at Aon Employee Benefits, said: “Franchisees need to take the same steps to prepare as any other employer. We find that many benefit from economies of scale as they can go into deals for advice and solutions as a group of employers and share knowledge. For example, we have offered significant discounts on our Littleblue auto-enrolment product when approached by a group of employers.”

However, there are some pitfalls to be aware of. “Importantly, it is absolutely essential that you plan ahead and visit the Regulator’s website to get confirmation of your staging date. Since many franchisees can share payroll resources (or may have done in the past) or evolved from mergers, acquisitions or break away companies, they could end up with a staging date that is very different to what might be expected for the size of their workforce,” Abrahams adds.

They also need to consider carefully which employer the contracts of employment actually lie with and who specifically falls under their employer auto-enrolment duties.

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09/01/2015 18:56

BE YOUR OWN BOSS

We provide all you need to own your own commercial cleaning business!

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

Training - Guaranteed Customers - Financing - On-going Support Why consider a commercial cleaning franchise?

Franchise commercial cleaning is one of the fastest growing segments of the industry.

Over the past ten years, total revenue has increased by 66%.

It is also a relatively low-cost franchise option, and because commercial facilities must always be well maintained, it is largely a ‘recession resistant’ franchise segment.

Industry Recognition for JAN-PRO In the latest Franchise 500 Awards Entrepreneur Magazine ranked JAN-PRO #1 in Commercial Cleaning and the Fastest Growing in Commercial Cleaning Overall.

In addition JAN-PRO is the only franchise commercial cleaning company to have ever been ranked as the Fastest Growing for six consecutive years, 2008-2014.

No one Supports you Better Jan-Pro FP March14.indd 1

Commercial Cleaning with a Difference

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

28/02/2014 19:47

Starting a Here’s one we Starting a business is no walk in the park, and unless you’re a multi-millionaire with a crack team of experts at your disposal, it never will be. So why are so many people in the UK choosing to go it alone? Is having a boss starting to lose a little gloss?

Investing into a franchise model is the perfect fit for some; offering a ready-made business model with a loyal customer base; a tried and tested brand; relationships with suppliers; and a dominant online presence. It’s all there, boxed up and ready to go. If businesses came flatpacked, they’d probably look like franchises.

Of course, a franchise isn’t for everyone, but here are a few reasons why a franchise might be a smart move for you...

The security obtained with a franchise is second to none. You’ll be running a business with a tried and tested framework, a brand that is trusted, and with the ongoing support of the franchisor. The franchise industry has rarely been in a better, more profitable state than it is today.

The franchise industry isn’t monopolised by fast food joints and coffee shops anymore; there’s now a broad range of franchises covering almost every area of business imaginable – from property investment to photography, comedy clubs to chocolate shops – so selecting the right brand could be your toughest decision in the whole process.

At every stage of the franchise process, you’ll benefit from support of the franchisor and a network of franchisees. This support will enable you to get on top of potential problems quickly, and bounce ideas off others who’ve been in the same position.

The franchise industry has seen significant growth in recent times and it’s now more diverse than ever before, with the UK proving fertile breeding ground for franchises of all shapes and sizes. The industry is now ripe with opportunities for franchise first-timers hoping to get a foot in the door, and even for hardened business owners looking to expand their business portfolio.

The Franchise Show will take place on 20/21 February 2015, ExCeL London Tickets are completely free and available at www.thefranchiseshow.co.uk or call 0800 1577 950

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business? made earlier

Over the last four years, The Franchise Show has helped thousands of people to make their move into business, offering access to the very latest information and opportunities within this fastmoving industry.

The next show will take place at ExCeL, London on the 20th and 21st of February 2015.

Tickets are free, simply register at www.thefranchiseshow.co.uk or call 0800 1577 950 With much of the work already done for you – the brand building, the marketing strategy, the idea development – a huge part of getting started in franchising isn’t running the business itself, but researching and pinpointing a franchise model to suit your budget, character and ambition.

The Franchise Show represents the industry’s diversity to its fullest, continually delivering an event that puts visitors at the heart of unmatched information, opportunities, and contacts, spanning every area of franchising conceivable.

Whether you’re searching for the right franchise system, or you simply wish to find out more about the industry, The Franchise Show’s comprehensive conference schedule is a great place to start.

You’ll discover seminars on everything from master franchise operations to retail franchises, and with the Focus On seminar schedule, finding the right information has never been easier.

On is a series of 30-minute seminars delivered by the most respected and FOCUS ON Focus experienced professionals in the industry, each seminar focusing on a different

franchise sector. Starting with a brief introduction to franchising, the seminars look at the characteristics of the market, investment levels, expected return, skills needed, the common pitfalls and the day-to-day operations. These sessions cover the most up-to-date practical, legal, strategic, and financial issues, allowing visitors to get straight to the heart of what they want to know.

International Opportunities

We have a number of great brands from The United States and the rest of the world who are looking for UK master franchisors at the event.

These brands offer a unique opportunity to bring a globally successful brand into the UK. If you think you have want it takes to do this, you can arrange a one-to-one appointment, at the show, to discuss what’s involved – call 0800 1577 950 to do this.

High investment, high return opportunities are also available at The Franchise Show, offering visitors the chance to meet people who have successfully established master franchises. Attend a series of seminars & workshops presented by leading experts in their field, and enjoy face-to-face meetings with organisations seeking to offer master franchise opportunities, many of whom will be promoting their concept for the first time in the UK. To complement the huge number of UK brands at the show, many international franchises will be present, all looking for willing franchisees to take the reins of concepts new to the UK. Visit in February and find out why The Franchise Show is regarded by many as the must-attend event for anyone looking to start a franchise business.

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ADVERTISING FEATURE

Every cloud has a silver lining Franchise cost £15,000 + VAT Set up costs £1,000 + VAT As one of the directors of EWIF Mandy Bagot will be speaking on a seminar each day titled ’Why it’s great to be a woman in franchising’ We are also exhibiting At The Franchise Show Visit Us at Stand Number 426

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

and want to meet business owners at business breakfast meetings. Our six franchise manuals and ten day training programme helps our new franchisees with marketing, sales, IT, operations and bookkeeping. Our unique Prism process system of workflow templates and checklists helps our bookkeepers and their clients know they are delivering a quality controlled service.

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

People who join our franchise do not need to be qualified bookkeepers because we give full training. They just need to like numbers, be analytical and have an avid attention to detail, like to solve puzzles

W

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ADVERTISING FEATURE

Case Study Damien Cassidy – franchisee, Solihull Cassidy had spent over 25 years as an internal auditor with the National Grid when a re-organisation was announced; he decided it was a good time to reassess his career. He came across an article about franchising whilst on a flight to Belfast to visit family. He liked the idea of starting his own business within an established structure and with support and decided to look into it more.

Cassidy started looking for franchise opportunities that would let him be his own boss and improve his work–life balance. “I actually looked at a few different franchise businesses,” says Cassidy. “My wife is a qualified nurse, so this included care homes and domiciliary care.”

Cassidy attended a franchise exhibition at the Birmingham NEC. It was there that he met Mandy Bagot, Cloud Bookkeeping’s founder, for the first time. Cassidy was immediately impressed by Bagot’s enthusiasm and passion for what she does. After taking voluntary redundancy in February 2014, he decided to invest into a Cloud Bookkeeping franchise.

Why did Cassidy choose Cloud Bookkeeping? He explains: “From day one I’ve found Mandy and her team to be incredibly supportive. And that’s matched by the training and support materials Cloud Bookkeeping you receive, like the Prism process templates. clearly put a big It makes running your emphasis on business so much easier, and the cutting-edge providing a firsttechnology is also a really class service, good selling point to and that’s very clients.”

Like many Cloud important to me Bookkeeping business owners, Cassidy recognised a dedication to service that sets the brand apart from its competitors: “Its appeal wasn’t just that I had a background working with numbers. They clearly put a big emphasis on providing a first-class service, and that’s very important to me. I want to make a difference to my clients.”

Although Cassidy only launched his Solihull-based Cloud Bookkeeping business in March, he has already landed his first clients. And he has no doubts that becoming his own boss was the right decision.

He concludes: “I knew I wanted to buy into an established name with a proven track record. Cloud Bookkeeping has all this and more. I’m already starting to see the benefits of the Cloud model and, although it’s still early days, I’m confident I’ll be able to achieve the work-life balance I’ve been seeking.

“Which hopefully means more time at home and getting to watch a lot more cricket!”

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Creating a franchise How do you create a franchise offering that really sells? Suzie McCafferty explains this is a question that perplexes both new and experienced franchisors alike

I Suzie McCafferty, managing director of Platinum Wave

Prospects need to see some tangible proof that your organisation has a track record of success

n franchising, marketability cuts both ways. Not only does a franchise’s offering have to be enticing for its customers but it has to be able to sell itself to potential franchisees. However, working out what will make a franchise a hit with potential franchisees isn’t always immediately obvious. Here are just a few of the things that help create a franchise that sells.

The long story

The first thing a franchise needs is longevity. If the business is built on a passing fad or fashion, it won’t be sustainable. The normal franchise term is five years but many are much longer. Stability is key for both parties – franchisees need to know that you will still be in business in ten or 15 years’ time. Prospects need to see some tangible proof that your organisation has a track record of success and this can be difficult for younger franchises.

For this reason, it is vital that your pilot franchises are carefully managed so they give a true reflection of your business proposition.

It is important that you are able to effectively convey the culture and ethos of your company: who are the people behind the franchise? You want to create trust and transparency with prospective franchisees. It is important that you are approachable and willing to share information so make sure you have all the information at your fingertips to answer any questions a prospective franchisee might ask.

Many deals have withered on the vine because a franchisor has taken too long to respond to a franchisee’s query.

One of the best forums to let prospects observe the company is at a discovery day. But this only works if it is done well and properly planned – there is huge potential here for things to go wrong and attendees go away with a bad impression of your organisation.

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SALES & MARKETING

winning formula Shooting fish

Whatever the product or service, sales are the lifeblood of the franchise and for this a strong brand is vital.

Having a well-recognised national brand will help your franchisees market themselves more effectively and ultimately generate more revenue for both you and them.

On the operational front, it is important to streamline as many processes as possible in order to make the business easy to follow; would you prefer your franchisees to be selling or doing admin? Operational processes also need to be documented in as much detail as possible so that brand standards can be maintained and again make the business very simple to operate. Automate – or at least streamline – as many back office functions as you can so that franchisees can focus on the core business and not get bogged down in paperwork.

and introduce contacts for shopfitting? It really is all about giving franchisees the tools to hit the ground running, thereby reducing the set up time and helping them start generating revenues as quickly as possible.

Franchisees will only be as good as the training you provide for them. It is vital to offer a strong induction training programme to get franchisees off to a flying start. Thereafter, a relevant and ongoing support and training programme needs to be put in place to keep franchisees focused on success and business growth.

But creating a franchise that sells is only half the battle; if you sell to the wrong person it can still end up being a costly business. Having a robust recruitment strategy in place will ensure do you do not make expensive mistakes. Franchisee recruitment can be time consuming and costly but do not be tempted to cut corners – only recruit the best who want to hit the ground running.

Sales are the lifeblood of the franchise and for this a strong brand is vital

Suzie McCafferty is managing director of Platinum Wave, the franchise consultancy.

Pillar of support

Also think about what back office support services you can offer your franchisees over and above the standard telephone support. Are you willing to go the extra mile for franchisees? For example, if it is a premises-based franchise, are you geared up to help find suitable premises

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PEOPLE

Hire right Finding the right candidate for the job is a challenge in any business. But for franchisees there’s a lot on the line

WORDS: JADE SAUNDERS

T

aking the decision to become a franchisee can be daunting for even the most seasoned of entrepreneurs as they are trusted to maintain the reputation of an established brand. As a result, there are often fears of tainting a franchise’s image by making poor hiring decisions. After all, these people are often the front-line staff, the outward-facing representatives of the brand – so they need to look after it.

Having created a successful business and taken the decision to go down the franchising path, a franchisor will carefully cherry-pick franchisees. It’s a process that takes considerable time and effort.

After all, these people will represent the brand and its core values at a regional or even national level. But should they also be involved in the hiring and firing within those franchises?

For many, the answer is a resounding ‘yes’. Through enlisting a franchisor’s support during the recruitment process, the sometimes lengthy and complex process can be simplified and the franchisee will emerge with the perfect candidate. Let’s not forget that the franchisor has been there, seen it and got the T-shirt: they had to staff their own business with exactly the same people you’re searching for.

What’s more, most franchisors will remember the pressures of starting up. While belonging to a franchise can offer some degree of comfort as it’s a tried-and-tested formula, franchisees will still face many of the challenges as other entrepreneurs. Therefore, franchisors will often be able to tell tales of their own growing pains – including how to get the best people – and how they quelled them.

For some, this may mean an informal chat from time to time.

A quick call to HQ after a day of interviews to talk through some thoughts about an array of candidates. For other franchises, it is often the case that there is something a bit more formal in place – they may provide training and information guides for franchisees.

There is no one-size-fits-all solution. It depends entirely on the industry, size of the operation and company culture. Whilst in the care sector it is often a legal requirement to carry out disclosure and barring service (DBS, replacing CRB) checks on potential employees, that may not be appropriate in a food franchise, for example.

These are all issues that experienced franchisors should be able to offer a steer on. That’s not to say they will have all the answers – but, even if they don’t, they’re very likely to know someone who does.

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Safety first The number one priority of any parent with a child in daycare is that their offspring is safe. They also want them to be in an environment which is caring, nurturing and educational but there is no substitute for knowing your toddler is in a safe pair of hands.

Tinies, the family owned and managed childcare company with 31 franchises across the UK, puts parents’ minds at ease with its rigorous screening process of all staff.

“Tinies have a robust and effective recruitment process at our head office which we’d share with franchisees whenever the time was right to start employing new recruits,” explains Jayne Middleton, franchise manager at Tinies.

A helping hand Jo Jingles is one of the biggest music, singing and movement experiences in the UK for children. Its fun filled classes are available in more than 700 centres across the UK and Ireland and it’s also expanding into Australia.

Parents put their faith in Jo Jingles to provide engaging classes for their children and promote positive interactions in the early years. It’s no surprise, therefore, that Jo Jingles take the recruitment process for franchisees very seriously indeed.

“It is important to provide the right training and advice on employing

“We provide franchisees with an operations manual which is full of advice and guidance so they know to follow the right protocol and don’t feel alone in a sometimes confusing time...no-one involved in the Tinies business should feel alone at any stage of the journey,” she adds.

While recruitment is very much dependent on the individual franchisee’s business need, Middleton says all franchises should have measures in place to assist with hiring.

“A robust recruitment process is essential to any business to ensure that you have identified not only the duties required but also the characteristics for the role and have also taken into account any specific knowledge, experience and checks needed.”

staff and to produce recommended guidelines on interview techniques, recruitment process, employment contracts and ongoing HR advice to your network of franchisees,” says Caroline Crabbe, general manager at Jo Jingles.

She also believes that when recruiting, franchisees have to be very clear and realistic about what potential employees should expect from the role. They must also have a clear idea of the “type of character or personality” of the business in mind and be clear in any communications in terms of what is involved in running and developing the business.

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Buy a pizza delivery franchise with

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A large market: 70% of Brits ate pizza in 2011 And a growing market: The home delivery market grew by 20% between 2006 and 2011

Even during a recession: Sales at Domino’s, the UK’s largest pizza delivery operator, jumped 8.4% year-on-year at the recession’s peak

That exploits the boom in smartphones: Mobile devices have

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

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

First 5 franchisees receive 6 months Royalty FREE

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Serving you the best matured A-grade meats, flamed-grilled in our open-plan kitchen, accompanied by our traditional secret pap and sauce or freshly cut chips.

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PEOPLE

A necessary evil Business owners never enjoy HR issues, but good policy is essential for the success of all franchise businesses to ensure uniformity, compliance and to uphold the reputation of the brand

WORDS: JoN CARD

H

uman resources (HR) can have the best managers pulling their hair out. It’s a constantly evolving space with new regulations, which aim to improve practices and promote good relations between staff and employers, being introduced by parliamentarians on a regular basis.

For franchisors and franchisees, HR has some unique challenges. On the one hand franchisors have to ensure compliance not only in their own businesses but also in their franchisees’.

Furthermore, franchises are known for their consistency irrespective of location. This relies upon the performance of staff and their hiring of the right personnel throughout the network. One bad apple in a franchise can impact upon everyone else, so those

at the top have an added responsibility to get things right.

Responsibility

Typically franchisors will pass on the liability for employing staff to their franchisees as few would be prepared to take on the risk of someone else’s hiring decisions. However, this does not mean that franchisors should not be closely involved with HR decisions taken by their franchisees. For instance, it is not uncommon for franchise businesses to centrally manage HR through shared software systems.

Furthermore, employee contracts can be standardised across the network.

Michelle Fenwick is a director of Heritage Healthcare Franchising, which provides carers for elderly and

vulnerable people so they can be looked after in their own homes. As the employees of franchisees are entering clients’ homes the business has an additional responsibility to ensure that all staff are fully vetted and suitable for the role. “The franchisees have to put all the documentation for staff through our software, which doesn’t accept them on to the system unless all the fields are complete,” Fenwick explains. “All staff need to have experience, at least two references and we carry out criminal record checks. Noone can work for us without them being on our system.”

Fenwick also spends time with her franchisees and makes regular visits to ensure

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that the business is being conducted in the correct way. “I visit them all on a monthly basis and carry out an audit of the business. I also speak to staff – not just the franchisee.”

Training

Franchisees are often experienced and mature professionals but franchisors still need to make sure they are well-trained when it comes to hiring staff. Fenwick says she trains all franchisees on issues a wide range of HR issues and that this is a major part of the course. “HR forms a large part of our training programme. Franchisees are taught how to advertise, how to interview and what qualities to look for,” she says. “We always support franchisees with staff issues and provide advice and support.”

Pay

If there’s one employee issue that needs careful consideration it is pay. Pay too little and you won’t get the best staff, too much and the business may end up less competitive.

Franchisors will have spent time getting these issues resolved before rolling out their business models to others and so will tend to be involved in the creation of a payment structure.

Some franchises will have uniformity throughout the network, but this becomes tested the bigger the franchise becomes and especially if it has overseas operations.

Sophie Atkinson is the managing director of £40m vehicle cleaning product business Autosmart which has franchises across the UK, Ireland, France, Holland, Germany, Sweden and Australia. Due to operating in many territories, it has to allow for some flexibility on pay and contracts but still retains some control. “Our franchisees tailor their pay to their local market conditions but we have uniformity within each country,” says Atkinson. “Within that country we have policies that make sure that pay is fair across different staff members according to their job roles. For example our UK regional franchisee managers all have the same pay benchmark; so do the UK franchisee recruiters. But the pay of the recruiters and the franchisee managers is different.”

Disputes

All employers dislike internal disputes and the prospect of a staff tribunal is one of their biggest fears. However, for owners of rapidly growing businesses they tend to be a part of doing business; the more staff a company employs the greater the chances of something going awry. All businesses be they franchisors, franchisees or not, should have systems in place which limit the impact of such problems. Good HR is precisely that and it means when something goes wrong there’s a method to deal with it. Franchisees will typically be liable for their own staff issues although this doesn’t mean that head office can’t be involved. “The franchisees are liable for tribunals for staff they employ, we are liable for staff that we employ,” says Atkinson. “As managing director, appeals would come to me. I have chaired four in my 15 years at Autosmart.”

LOST IN TRANSLATION Sophie Atkinson is the managing director of Autosmart which has franchises in six different countries. She says employment law varies hugely from country to country but that France is still “puzzling” “Each country is entirely different, and we have local HR advisors in each country that we employ staff in. At the start we had thought it sensible that our policies mirrored the UK. We quickly realised that this was the wrong approach and that what worked best was to have the same philosophy interpreted locally,” says Atkinson.

“Where Germany is very similar to the UK, we have found, and still find, France puzzling.

Employees have enormous rights compared to any other country we have employed staff in,” she says. “There are many other differences too. Bank holidays are numerous but vary by year because the dates float about, and in some years fall on weekends. There has to be a three week block of holiday taken in the summer or you are in trouble.

Our sales staff work shorter hours than in any other country – they are prohibited to do more by law.

“Luncheon vouchers are a very typical component of pay. Bonuses are not common.

Maternity is very different, it is typical to see an expectant mother signed off on sick leave in her last trimester, yet it is also typical to see the new mum back at work when her child is 12 weeks old. France has fantastic state-funded childcare provisions. We find our French staff very loyal, there seems to be a culture of find the right company for you and then stay.”

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TECHNOLOGY

DATA DETOX T

wo years ago, the world had generated roughly 3.5 zettabytes of data – this monumental amount is the equivalent to 600 billion DVDs of data. By 2020, it is estimated that we will be generating over ten times that amount of data. However, predictions have also shown that by 2016, we will produce data faster than we can store it. We are consuming and creating more data than ever before and if we want to prevent an overload, we need to become data diligent.

We need to look at data like we would food in our own diet. Is excess and unnecessary data making your business sluggish? Is your business guilty of hoarding countless e-mails and large media files? If you feel that your business is overloaded by excess data, maybe you need a data detox. With help from our data savvy friends at Seagate, we have hatched a plan to help fight excess data and kick your business into shape.

We shrug off the extra pounds gained over the festive season with a New Year diet. Franchises need to do the same when it comes to data

Appreciate storage

WORDS: Jade saunders

01

Data storage and disk space have their limits therefore in a business it is essential that you understand what data is important and what isn’t, says Izak Oosthuizen, senior consultant at Exec Sys, the IT support firm. “The key to successfully managing data storage is achieving a better understanding of your information and its actual value. With data volumes rapidly growing, 2015 will become a more challenging year than ever for businesses to effectively backup, store and access information – without requiring costly sources.”

“Most companies often don’t know what information they’re storing, so it’s important to keep on top of what you’re stockpiling and ask yourself why you’re keeping this information. If you can’t think of a legitimate answer then it’s best to get rid of it,” adds Bostjan Bregar, co-founder and CEO of 4th Office, a cloud collaboration company. Smarter thinking is needed to manage data and by educating employees on smarter data management businesses could save a packet on storage costs and on time, too – when your limit is reached and data needs to be reorganised.

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TECHNOLOGY

Devise a data policy

Work with your team to determine what data is essential and where it should be stored.

Files that need to be regularly accessed may be appropriately stored on the local network whereas others may be stored on hard drives. Bregar advises adopting a two-way structure of minimising excess data, where all employees self-manage their personal data, alongside a company policy on shared data. “Prioritise your data into ‘important’, ‘not important’, ‘to trash’ and ‘archive.’ Delete everything that’s irrelevant and archive important stuff that you don’t need to access on a regular basis.” By enforcing data policies, businesses can keep on top of their data management in order to reduce costs and quickly access relevant data.

Peter Connell, managing director of CallPro, the CRM provider, suggests that multiple databases are crucial to companies as each department will have its own that works in different ways. By devising a data policy for these multiple databases, each department is able to function efficiently without unnecessary data clogging up the system. Devising rules for the nature and amount of content stored can help to not only manage excess data but organise existing data and allocate it to an appropriate database.

02

Time for a system spring clean

03

Scan your hard drives regularly and delete all unnecessary files. There are a number of tools available to assist with scanning drives and filtering through data that can be discarded easily and safely. Email management tools can help to clear large volumes of disk space by identifying old emails and outdated attachments. Filter out junk emails that waste valuable space.

Bregar advises businesses to have a tidy-up of their data – and sooner rather than later. “It’s time that businesses and individuals start making a conscious decision about what to do with excess data. This starts with managing data daily and actioning it regularly,” he says. Regular spring cleans will ensure that excess data is tackled and highly sought after storage is accessible.

Personal data and emails could be transferred off of the local network and hard drives and onto the personal hard drives of employees.

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TECHNOLOGY

De-duplicate data

04

The majority of businesses duplicate documents – often multiple times – which can create masses of unnecessary data. You can free up storage by only duplicating certain documents as opposed to all and by storing them on separate external hard drives and cloud-based storage.

Important duplicated documents that are accessed less often could be moved to lower-cost storage options in order to save money.

De-duplication when done properly can also minimise time spent hunting for necessary documents. Connell believes that by managing data in bulk and de-duplicating documents, data can be accessed easily and more importantly, quickly. Managing data efficiently can save time and resources and freeing up storage now will save time in the future as more content is curated. “By keeping only most current file versions and removing duplicates, savings of up to 30% space can be achieved,” Oosthuizen adds.

Backup data

Backing up data within a business is essential to ensure that trade is not eternally lost should a system malfunction or server failure occur. However, backing up data should be carried out efficiently and securely. Data management is still obligatory even if you have access to extra storage. Remain vigilant with deleting excess data and do not keep old data for the sake of it.

E-mails can be backed up on cloud-based email archives to avoid losing important e-mails that are often automatically deleted after just 14 days.

Businesses should ensure that their data is backed up safely on a secure hard drive or cloud system to be able to restore it in a data loss event. Oosthuizen advises: “It is also worth ensuring important backups are stored outside of an office building, with some kind of offsite backup solution. It could be as simple as backing up data on storage devices which are taken offsite or setting up and automated cloud backup.”

However, Bregar warns that we are putting our data in too many places and this can be a dangerous game to keep track of. Scattered IP can have detrimental consequences on a business if not successfully managed.

05

There you have it, now there’s no excuse for reaching storage limits and holding onto countless unnecessary emails and those pictures from the office party. Oosthuizen is a fierce proponent of good data management. “With the multiple pressures that data growth volumes place on a business, it’s critical to understand the location and nature of data and rationalise approaches to its management. This will not only help to avoid compliance risks, but save significant costs associated with backup resources and poor efficiencies.”

The message is clear: shift some megabytes this month and pledge to keep on top of data management.

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HEALTHY FOOD. HEALTHY RETURNS. LOWER RISKS THAN STARTING ON YOUR OWN EXISTING ESTABLISHED BRAND IDENTITY HIGH QUALITY MARKETING MATERIALS RECRUITMENT AND HR SUPPORT FRANCHISE SUPPORT MANAGER ON HAND

Fresh, nutritious, tasty food, cooked in front of your eyes and served in minutes.

Our unique, brand-led, fusion food chain, blending the best of Thai, Malaysian, Indonesian, Chinese and Japenese cuisine lends itself perfectly to franchise. With 15 stores currently open in the UK and Middle East and further plans to expand here and internationally, the Wok&Go brand is going from strength to strength.

With a passion for excellent customer service, great tasting, healthy food and year on year consistent growth, we have worked our way to become what we believe to be the leading noodle bar chain in the UK.

Join our expanding business today! Contact Des Pheby on 01244 376310 or des@wokandgo.co.uk

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LEGAL

Face value W

hen you’re dealing with the day-to-day requirements of running a franchise, intellectual property (IP) might seem like a rather dim and distant concern. But it’s easy to forget just how vital it is to a franchise and how much of its value is represented by its manuals and secret sauce. Whilst any business needs to protect these assets, in franchising – where one is selling franchise packages to third parties – it is even more essential to ensure that this value is properly protected.

First of all, it’s important for a franchise to understand that IP isn’t a secondary concern; it’s what makes up the bulk of the value of its franchise package. “When you think about what the person’s paying for when they buy a franchise, it’s partly to do with the brand, it’s partly to do with the knowhow and it’s partly to do with the

Protecting IP might not be a franchise’s first concern but, taking into account how much of its value is locked up in these assets, it’s something it cannot afford to ignore

The IP is one of the key reasons why somebody would buy a franchise Kate Legg, Higgs & Sons

WORDS: JOSH RUSSELL

support that you get from the franchisor,” says Kate Legg, associate at Higgs & Sons, the law firm. The value of a franchise’s IP is far from just being an abstract figure because it represents all of the financial value that it is providing for its franchisees. “It’s one of the key reasons why somebody would buy a franchise rather than setting up as an independent business,” she continues.

Despite this, IP is often one of those things that gets missed by new franchises. Whilst corporate businesses spend huge amounts of time obsessing over protecting their IP, it’s easy for fledgling franchise offerings to fail to recognise the inherent value of what they’ve developing. “It’s quite easy to overlook IP because it’s not tangible,”

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LEGAL

says Legg. “Usually it’s the stuff that’s really obvious to the franchisor and, because it’s really obvious, they don’t necessarily appreciate what they’ve got.”

Appreciating the value that they’re sitting on, however, can be difficult for franchises because they haven’t necessarily been consciously developing these things as valuable assets in their own right. “Usually it’s evolved over a very long period of time,” says Legg. “Because it’s that gradual process, you don’t necessarily see how good it is or how big it is.” Given an offering is honed over time and is rarely considered as a conscious process of creating marketable IP, it can be easy to underestimate the value tied up in the franchise package.

But, even if a franchise does understand the value of its IP, valuing something and protecting that value are two wildly different things. “Protecting IP is very important but sometimes it’s easier said than done,” says Legg.

Typically the first things that people tend to think of when you mention IP are elements like branding and protecting these are comparatively straightforward. “If you think about the brand name or the logo, that’s dead easy because you can register a trademark,” Legg says. In slightly more complicated cases, additional protections might be required and so it is worth seeking advice on the best way to handle them, particularly when a franchise has created unique products or tooling. “There might be some networks where they’ve got patents or registered designs, there could be all kinds of things,” she continues. “It’s going to be unique to the specific network.”

However, there are elements of IP that are far more tricky to protect. “When you get to things like the knowhow and the contents of the manual, that gets a bit more difficult,” Legg says. A huge amount of a franchise’s investment goes into working out its model and processes but protecting these aren’t anywhere near as straightforward. Whilst copyright can protect the wording of a franchise’s operations manual, it’s important to recognise this is as far as it extends. “It’s just a right that stops people copying it,” Legg explains. “It’s just your specific version of it, rather than the overall ideas.”

This is one of the areas where a franchise is most at risk. A franchisee who has signed on the dotted line and is operating their own franchise has an incentive to protect these processes because it would be their own livelihood that will be damaged as a result. But it is outside this contractual period that the franchise’s IP is

most at risk. “If you’re talking about a potential franchisee that hasn’t signed up yet, they’re obviously a big risk because they might have a look at it and think ‘I can do it myself’ and then not pay,” says Legg. “Equally if you’ve got a franchisee that’s just left the network, there’s certainly a risk that someone might want to continue using that IP without paying for it” There are legal protections that one can put in place to prevent this. “At the beginning, you want to make sure that the potential franchisee signs a confidentiality agreement or a non-disclosure agreement before they see anything,” Legg says. Meanwhile, it’s vital to make sure that a franchise’s contracts prevent former franchisees using all of the insights they’ve gleaned to set up a competing business. “You want to make sure that your franchise agreement has got some fairly robust non-compete clauses in to protect against this.”

But, beyond the legal protections, Legg says there are also practical protections a franchise can put in place to protect this material. One of the main ones is not letting a potential franchisee look at the franchise manual too early in the process; whilst it’s reasonable that they will want to inspect it before signing, a franchise shouldn’t allow this right from the off. And certainly one shouldn’t allow an external party to walk away with copies of such sensitive material. “You’d expect there to be a right to inspect it at the franchisor’s premises,” she says. “You wouldn’t expect the franchisee to be able to take a copy and walk away with it.”

All told, IP is one of a franchise’s most vital assets. Learning to value this properly and protect it accordingly is an essential consideration for any franchise wanting to guarantee commercial success.

Protecting IP is very important but sometimes it’s easier said than done Kate Legg, Higgs & Sons

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FRANCHISE FOCUS

ActionCOACH ActionCOACH is a multi award winning franchise.

‘Best Overall Franchise Award’ for 2014 in the £25k to £75k investment category. ‘5-Star Franchisee Satisfaction Award’ - 2nd year running. ‘Award for Continuous Improvement’ & Compare The Financial Market’s ‘UK’s Best Business Opportunity’.

ActionCOACH is the world’s number one business coaching franchise, with more than 1,000 offices in 50 countries. Our teams of coaches were originally frustrated, undervalued entrepreneurs and white-collar managers.

A-Star Sports A-Star Sports is a multi award-winning children’s sports coaching franchise, specialising in delivering weekly classes, holiday clubs, parties and events direct to families. We offer an exciting opportunity to coach ten core sports and more, promoting the all-round benefits of sport and a lifelong commitment to being active.

Franchisees are offered a bespoke training programme but they all have three things in common – a passion for sport, an affinity with children and the drive to succeed in business.

Belvoir Lettings Belvoir Lettings has grown dramatically since opening in 1995, with over 150 franchised offices nationwide. Offices are owned and managed by local people, whilst being part of a recognised brand and successful business model.

As the first residential lettings agency to launch on AIM in the London Stock Exchange, Belvoir has ambitious expansion plans. Franchise owners with the aptitude, determination and people skills are needed.

Clear Brew Limited Clear Brew Ltd are the beer line cleaning professionals Dedicated beer line cleaning service to the licensed trade including public houses social clubs, sports clubs and holiday parks plus hotels in fact anywhere that has a traditional bar.

Clear Brew are looking to continue to expand nationwide and are seeking highly motivated individuals or couples who are enthusiastic, good communicators and have a desire to succeed. By choosing Clear Brew Ltd, you can become your own boss; running a highly successful franchise with your own protected territory, training package, full equipment pack and full ongoing support.

• Best UK Business Opportunity according to Compare The Financial Markets • 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 • Winner 2014 Best Franchise Award sponsored by RBS • Break the 9-5 routine!

Can Rainy or Sam on 01284 701648 or email rainy@actioncoach.com Watch a six-minute overview video at www.actioncoach-franchise.co.uk/overview

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

Call 0845 459 2210 email: gary.bassett@a-starsports.co.uk www.a-starsports.co.uk

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

Call 01476 584 900 email: franchise@belvoirlettings.com belvoirlettings.com

• High profit margins • Huge protected territory • Excellent daily cash flow • Full on-going support • Vital repeat service • Complete franchise package £12,500 Stephen Trezona 08007810577 or 01209219889 enquiries@clearbrew.co.uk www.clearbrew.co.uk

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FRANCHISE FOCUS

Cloud Bookkeeping A franchise you can count on..

Set up your own home based bookkeeping practice with an award winning bookkeeping franchise. Join over 20 franchisees offering bookkeeping to businesses using cloud software such as xero, kashflow and sage. We provide vat returns, profit & loss, payroll and credit control etc from only £50pm.

No qualifications are needed as full training is given. Franchise fee £15,000 plus vat. Running a Cloud Bookkeeping franchise is the ideal way to achieve a work/life balance.

Driver Hire Nationwide A straightforward business with huge potential A proven B2B management franchise with over 100 offices and a 30 year track record, Driver Hire is one of the most successful franchise brands in the UK. A specialist recruitment company supplying temporary staff to the transport and logistics sector. Average full year sales for Driver Hire franchisees in 2013/14 were £828k.

Goldgenie Goldgenie was formed in 1995 and is now the most influential and trusted brand of its type in the world. Clients include HTC, Blackberry, Lexus, Viacom, American Express and Visa, and numerous A list Hollywood and international stars.

Business in a box: This amazing business opportunity truly can give you the Midas touch turning hundreds of everyday items into luxurious gold or rose gold.

Our success can also be your success with a small investment of just £2447.50 plus Vat.

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

• Be your own boss • Build your own successful business working from home • Enjoy the benefits of flexible hours • Easily expand your business using our cloud technology and outsourcing solutions • Support of a dedicated team passionate about you and your business

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

Mandy Bagot 02031 372 878 mandy@cloudbookkeeping.co.uk cloudbookkeeping.co.uk

Call Kasia Baldwin 01274 361073 franchise@driverhire.co.uk www.driverhirefranchise.co.uk

• Complete business in a box • Minimal investment • Unlimited income only limited by your imagination • Change your life by visiting this link: www.goldgenie.com/ goldgenie-business opportunity.php Call Frank Fernando on 0208 804 6200 Email: Frank@goldgenie.com www.goldgenie.com

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

Call 0203 077 5880 email: franchise@harryramsdens.co.uk www.harryramsdens.co.uk/franchise Winter 2015 elitefranchise 61

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

• The bfa Gold Franchisor and Franchisee of the Year • Smith & Henderson Best Franchise Award • No.1 Home Care Provider • 5 star Franchisee Satisfaction

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

The Interface Financial Group IFG 50/50 is an affordable home-based franchise that provides short-term working capital to small businesses by purchasing current, quality invoices at a discount.

In IFG 50/50, all transactions are syndicated 50/50 with the franchisee and franchisor. IFG is also responsible for the due diligence and paperwork for the transactions, while IFG 50/50 franchisees build the referral relationships. Also available is an innovative Capital Leverage Programme to allow franchisees to grow their capital even faster.

JAN-PRO Cleaning Systems Jan-Pro is committed to helping individuals start their own commercial cleaning business at whatever level they choose – part time, full time or executive, with an entry level investment of under £10,000. Our training is excellent, our support ongoing and our vision is for you to grow your business to support the lifestyle of your choice.

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

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

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

Call 01934 740472 email: phil.ryan@jan-pro.com www.jan-pro.com/centrallondon

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

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

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

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

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

Call 08000 934 984 info@surelet.co.uk www.surelet.co.uk

The Best Of Residual Income, Low Maintenance and HUGE growth potential.

Our franchisees identify the best businesses in their local area and then using a suite of marketing tools unique to thebestof, work with the business owner to showcase and promote them. Your core income will be from the monthly membership payments made to you by local businesses.

When you’ve got 200 featured businesses, your regular monthly income should be heading north of £19,000 each month. Remember: residual income is a beautiful thing.

urpad urpad franchise offers very little over heads, and excellent profit from day one. We love the idea we are one of the first online estate agent, but also on the high street, offering the client a great service, guaranteed return phones calls same day, emails and regular updates, plus old fashion getting to know your client. We have over thirty years experience in the market place. Director Ian Clark had his own tv show in the 90’s called the Estate Agent Clark a fly on the wall documentray for itv. Full training given and on going support will make it a great success for all involved.

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.

• Low maintenance • No stock • No employees • Residual income • Low-cost

Georgina Grogan 0121 765 5556 tellmemore@thebestof.co.uk www.getthebestof.co.uk

• One of the first on line-estate agent company’s with high street present • Only 299 to sell your home • Only 119 to let your property • Guaranteed service return phone calls and emails same day • Guaranteed viewing feed back on every viewing

Ian Clark 01179 422 882 or 07768 094482 ian@urpadonline.com www.urpadonline.com

• Marketing and promotion tools • Group purchasing power • Internet and web support • Ongoing training programmes • Continued concept and product development • Day to day troubleshooting Call 01530 513307 email: edownes@thezipyard.co.uk www.thezipyard.co.uk Winter 2015 elitefranchise 63

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Franchise Diaries with Kate Lester

A wise move New columnist Kate Lester tells us why franchising Diamond Logistics in 2011 was the easiest decision she’s ever made

W

hen I tell people I have franchised my business they look at me as if I have just told them I’ve joined a cult. ‘Hmmmm. Franchising, eh,’ they say rubbing their chins. I then tell them it’s one of the best decisions I have ever made in 23 years in business. It is not easy building a £40m business turnover – but franchising has enabled me to get on the path to achieve that with just a little support from my bank and a headquarters team of only ten.

And when these ‘chin rubbers’ ask for more information here’s the three major reasons I tell them I expanded my business this way:

The give a sh*t factor

Firstly it was about the type of people I wanted to run my depots. Having had a lot of experience in the previous 20 years getting insight into an employee depot-led organisation, I can say that the dilution of the message from the top was palpable to the people fundamental to the delivery of their services. I will be honest: many national networks were staffed with the jobsworths you get on the end of 0845 numbers who do not care where your package is, let alone deliver it. When I looked at how we could maximise quality in our network and ensure everybody in our supply chain was intimately involved and rewarded throughout our service delivery, franchising seemed ideal for this as each site would be run by someone whose livelihood depends on it. With little loyalty in the courier market other than that achieved by excellence in service delivery I knew this formula would mean the people at the coalface of our deliveries would step up to the mark.

Lean velocity

We were also very aware that businesses were crying out for our services UKwide – we were getting calls all the time – but at that point we had just two sites so had no way of assisting nationally. Nor, to be frank, did I have the capital to fund 30+ depot rollouts.

Again, the franchise model, where the franchisee funded the establishment of the depots, was ideal. We’ve gone from two to 23 in two and a half years – with a further 17 by June 2015, which will put us in a parity position with our key competitors, in terms of geographical coverage, in just three years. That speed at low cost was all possible because of franchising.

It’s a pleasure doing business

Our franchise network has been like a dating service for Diamond partners.

It’s been a recruitment rather than a sales experience. We get to choose people we like, who can specifically do the job (we only recruit logistics professionals) and that we know will be true brand upholders – singing from the Diamond hymn sheet and delivering the very best for our lovely clients. We believe our franchises are as much our clients as the people who book our couriers, so it’s all about service delivery to them, helping make their business grow and assisting in getting the message out to their local business communities. The atmosphere at our network events (we have three a year) is terrific and it makes it a real pleasure doing business. And that filters through the network. Our clients love the service they are getting, our franchises love being part of our team and we love seeing flashes of our pink logo going up and down the county as word of Diamond spreads.

To me a franchise is the very best of both worlds – you get to work with likeminded people to expand your brand, they are invested in making it a success and they are rewarded by the hard work they put in. It’s definitely a cult worth belonging to.

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A franchise is the very best of both worlds

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ADVERTISING FEATURE

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

A

s one of the fastest growing and most successful franchises in the UK, 2013 has certainly been a big year for Dublcheck, not least because it marked 20 years of business for the leading commercial cleaning company. Deciding to celebrate in style, the franchise hosted a glittering ball to recognise the many achievements of the organisation and its franchisees.

The ball, hosted by founder and Chairman Carol Stewart-Gill, was held in the Leverhulme Stand at the historic Chester Racecourse. Over 120 guests attended the superb occasion and enjoyed a champagne reception, dinner and an evening of entertainment. Guests were treated to a dazzling performance from world modern jive dance champions and franchisee owners Hazel Surguy-Price and John Lloyd. An outstanding performance by acoustic reggae and Latinostyle band Duncan Disorderly & The Scallywags brought everyone to the dance floor and got the evening into full swing.

Speaking passionately on the night about the company she founded in 1993, Carol StewartGill said, “It is fabulous to be sharing the achievements of this wonderful organisation with our franchisees. Success only comes with hard work, grit and determination, and this evening demonstrates the commitment of our franchisees and dedicated head office team.”

Len Donnelly won the prestigious Dublcheck 20th Anniversary Award. Since joining the

member of

Dublcheck network over six years you a success. Dublcheck’s “We can’t thank make ago, Len has amassed an annual approved training programme our franchisees will make you a professional in turnover in excess of £325,000.

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

Email: franchise@dublcheck.co.uk Whatever your background, investing in a Phone: 0800 317236 Dublcheck Commercial Cleaning Franchise can

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