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Issue 8 2010

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Next Issue... October 2010 Franchise Expo UK

In this issue: Take your time selecting a franchise Building Green Debunking the myths How to promote your business through PR ACT IVE

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Franchise Focus International provides news and advice on all aspects of franchising.

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Whether you are new to franchising or have been involved for many years, Franchise Focus has something for everyone.

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Next Issue Out... October 2010 - Franchise Expo UK

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FRANCHISE FOCUS

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Win new business Advertise with us Franchise Focus has an international audience that reaches key decision makers in franchising. Whether you are selling a product, service or business opportunity, Franchise Focus is read by over 50,000 people searching within the franchise sector. What's our circulation?

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It's hard to put a figure on it, as each issue of the magazine is published online and made available for download to over 40,000 monthly visitors with a link published on all our 30 country portals as well as sent out to a subscription database of over 6,000 franchise investors. It doesn't just stop there, the magazine download link is virally distributed through the social networking sites maintained by Franchiseek and all its writers and supporters. This is not just a monthly magazine, each issue is retained on the server for unlimited downloads for years to come. The Benefits • Unlimited reads • Global Audience • Useful advice written by professionals • Your advert last for years The Costs Whole Page - UK £1,000 Half Page - UK £600 Quarter Page - UK £350 Magazine Sponsorship Front cover image, whole page advert and 4 pages of advertorial Per issue - UK £5,000 To secure your advert, please contact Roger Forge on his email: roger.forge@franchiseek.com w w w. f r a n c h i s ee k .com

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4-5 Legal due diligence for prospective franchisees 6-9 In the news... Advertisers' news and franchisee success

10-11 Considering joining a franchise? 12-13 Take your time selecting a franchise 14-16 Financial planning advice for the franchise sector in an economic downturn 18-19 Is now a good time to franchise your business? 20-22 Women in franchising on the rise in Australia 23 News from the Franchise Association of South Africa 24-28 Building Green Debunking the myths 24-28 Global market trends 42-45 Global franchise opportunities

Disclaimer The inclusion of any article or advert does not constitute any form of endorsement or approval by Franchiseek. All submitted articles will be considered. We reserve the right to refuse any advertisement or article which we consider unsuitable. Whilst we make every effort to ensure all advertisements and articles are correct, Franchiseek, will not be held responsible for errors or omissions. © Franchiseek Ltd 2010 All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or using any information storage and retrieval system, without permission in writing from Franchiseek, except that brief passages may be quoted by a reviewer in a magazine, newspaper or broadcast review. This publication is designed to provide its readers with accurate and authoritative information with regards to the subject matter covered. If legal advice or other expert assistance is required, the services of a competent person should be sought. ISSN: 1747-9479

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FRANCHISE ADVICE

FRANCHISE ADVICE

Legal Due Diligence for

Prospective Franchisees By David Bigmore

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FRANCHISE ADVICE

FRANCHISE ADVICE

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efore taking a Franchise you should always carry out due diligence in respect of all relevant matters.

These include: 1) Financial Due Diligence: Do a full credit check on the Franchisor. Check out its latest accounts. Make all appropriate enquiries as to the financial position of the Franchisor. 2) Market Due Diligence: Make sure that there is a real need for the product or service in your area and check out the competition. 3) Franchisee Due Diligence: Talk to as many existing franchisees as you can and glean from them as much information about the Franchisor and the Franchise as you can. This article will concern a fourth area of due diligence: Legal Due Diligence. There is no substitute for having your Franchise Agreement checked out by an experienced, specialist franchising solicitor but here are some pointers for some basic clauses to look for and to consider. The list is not exhaustive. 1. Misrepresentation and Promises Most Franchise Agreements will endeavour to exclude any representations, warranties or promises made to you during the course of the procedure which leads to you taking the Franchise. In this respect, it is not unusual to find a clause usually towards the end of the Agreement, often headed up “Entire Agreement”. The aim is to achieve certainty by providing that all of the agreed terms are set out in the Agreement. You should however make sure that they are. An important part of one such clause is as follows: “The Franchisee acknowledges that he has not relied on any oral or written representations or statements about the System, the Franchisee’s Business, the prospects for the same, turnover, profitability or any other matter unless such representations or statements are reduced to writing and annexed to this Agreement and signed by the parties and incorporated herein”. So, make sure, if the Franchisor has told you something important on which you wish to rely and which is one of the main reasons you are taking the Franchise, that the relevant matter is written down, signed by both parties, is attached to the Agreement and is incorporated into the Agreement. For example, “It is agreed that you have represented to me that all of your Franchisees are earning net profits before tax of at least £40,000 per annum. This is of fundamental importance in my decision to enter into this Agreement”. w w w. f r a n c h i s ee k .com

Similarly, if the Franchisor has promised something which is important to you and which does not appear in the Agreement: write it down and have it incorporated into the Agreement. 2. Renewal Make sure that you can maintain your investment, so ensure that: (1) You will have a right of renewal at the end of your first term;

David Bigmore

(2) No further initial fee or renewal fee is payable on renewal; (3) The renewal term will be for at least the same period as the first term; (4) (Since it is likely that you will be obliged to sign a Franchise Agreement in the then current form at the time of renewal) the management service fees and advertising levies (if any) will not increase on renewal (although the Franchisor may well resist this suggestion) and/or that the terms of the renewal agreement will be no more onerous than the terms of your first Franchise Agreement which is being renewed. 3. Sale of Your Business Make sure, when the time comes to move on, that you can cash in on your investment, so ensure that: (1) You can sell your business for its market value at any time before the Franchise Agreement expires (albeit the Franchisor will wish to agree to the identity of the purchaser and will probably have the first right to buy your Franchise); (2) The transfer fees (if any) are not excessive. 4. Read the Agreement Make sure that you read the Agreement thoroughly and make sure you understand it. Where you do not understand it, take specialist legal advice. You will usually be able to get a fixed price deal from a solicitor which is almost invariably good value for money. If you are going to spend a substantial sum on an Initial Fee and commit (usually) five years of your life to your Franchise, it does not make sense to ‘buy blind’. Overall therefore the byword is the same in buying a franchise as it is in buying any business. Be careful and do your homework thoroughly. David Bigmore ©David Bigmore Limited 1st July 2010

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FRANCHISE IN THE NEWS...

Advertiser's news published online and in Franchise Focus Magazine

FRANCHISE IN THE NEWS...

Linguaphone signs new partners for Pingus English Childrens English language course The Linguaphone Group, an internationally acclaimed global language training provider, has today selected Evrokniga and Knizhny Dom to act as official partners for the Group’s character-based children’s English language program, Pingu’s English, across Russia. Evrokniga have been appointed to distribute Pingu’s English across the whole of Russia apart from the North-West Federal region. Since 1993, Evrokniga has been working in the Russian market, distributing educational materials for key British and European publishers. Based in Moscow, Anna Gorizontova, Business Development Director of Evrokniga, will be overseeing the business; promoting Pingu’s English to kindergartens and primary schools through their wide network of agents. Knizhny Dom, based in St Petersburg, has also been successfully trading in educational literature in the Russian market for many years. Led by Andrey Nesterov, Director of Knizhny Dom, they will be responsible for distributing the Pingu’s English children’s English language course across St Petersburg and the North-West Federal region of Russia. Pingu’s English is a fun and imaginative way for young children to learn English and is based on the popular children’s character, Pingu(tm) (from HIT Entertainment). Pingu’s English is a three-level course developed by leading experts in the fields of child education and language acquisition and is transforming the way young children learn English. This unique methodology uses a wide variety of imaginative activities and multimedia resources. Designed for use within Pingu’s English Schools, kindergartens and also by parents and children at home, this innovative course is exclusive to the Linguaphone Group.

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No foul play at the CLA Game Fair Oscar Pet Foods helped to keep this years' CLA Game Fair a poop free zone by encouraging dog owners to ëscoop that poop'. Oscar were once again the proud sponsors of the CLA Game Fair 2010. Our network of Nutritional Advisers were on hand to give expert advice throughout the event and provide FREE poop-scoop bags and fresh cool water for the thousands of thirsty attendees - dogs that is! The CLA Game Fair is the world’s original, largest and most prestigious countryside exhibition and was held at Ragley Hall in Alcester in Warwickshire. The event took place from Friday 23rd July - Sunday 25th July with every imaginable country sport and rural activity represented. This special annual event in the sporting calendar appealed equally to keen huntsmen, countryside lovers and visitors of all ages. Richard Martin the Managing Director at Oscar said "We were able to generate the right sort of attention introducing pet owners to the Oscar special pet care service. Overall we had a fantastic show with glorious weather, once again proving that Oscar is much more than pet food".

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Derek Price, Chief Operations Officer of the Linguaphone Group commented, “Knizhny Dom and Evrokniga are revered and well-established publishers in the Russian education sector and we are delighted to sign two partners in such an important strategic market for the Group’s expansion plans. I have no doubt that with their hard work and expertise in the market, Pingu’s English will fly!”

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FRANCHISE IN THE NEWS

FRANCHISE IN THE NEWS...

Razzamataz and Bannatyne working together for family fitness

Advertiser's news published online and in Franchise Focus Magazine

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Razzamataz Theatre School is launching its new family fitness service, starting from Saturday 21st August 2010, within Bannatynes in Ayr.

clearly shows that parental guidance and setting a good example to children is paramount in promoting positive attitudes to diet and exercise.

Dragons' Den multi-millionaire businessman Duncan Bannatyne has been working with Razzamataz Theatre School since Denise Hutton-Gosney, a Carlisle-based entrepreneur, appeared on the show in January 2007 and he offered her the full investment. The classes for children, which consist of dance and drama, have been specifically tailored to fit within clubs, and aim to put more of a focus on improving the fitness of the entire family, and the child's confidence levels and social skills.

Working together to create family fitness is something of which Denise Hutton-Gosney, Duncan Bannatyne and his chain of Health Clubs are fully supportive. "We want to inspire families to enjoy working out together and to make exercise something that is easily incorporated into their everyday lives," said Denise Hutton-Gosney. "We understand that it is not always possible to arrange childcare so you can go to the gym, and many parents and carers spend much of their time driving children from one activity to another. Razzamataz at Bannatynes is a great opportunity for all the family to enjoy exercising and having fun in the one place."

Parents are encouraged to set a good example in endorsing the need for daily physical activity. The idea being if your child sees that you are physically active and that you have fun doing it, he or she is more likely to be active throughout their life. "The fact is that in the UK three quarters of a million children are classified obese*," explained Razzamataz director Denise Hutton-Gosney. "Razzamataz stands for ĂŤebullient energy' and that is the quality we encourage in all our pupils. Ebullient energy impacts positively on every aspect of a child's life. Physical fitness levels are increased, positive mental attitudes are supported and confidence and self-esteem produce a definable inner light and sense of achievement." Research from NCH (formerly National Children's Homes) has revealed that children living with overweight or obese parents are more likely to be overweight themselves. 19.8% of children living in households where both parents were either overweight or obese were themselves obese, compared with 6.7% of children living in households where neither parents were overweight or obese, and 8.4% of children living in households where one of the two parents was overweight or obese. This research w w w. f r a n c h i s ee k .com

As well as improving health and fitness, participation in theatre arts has been shown to benefit children in many different areas as they acquire life and performance skills. Theatre trained individuals are identified as having transferable skills such as good interviewing technique - massively important for older children in the job market which additionally teaches self-discipline and the ability to work as a team. The launch of Razzamataz in Ayr follows the success of Razzamataz classes at Bannatynes Health Club, Durham. "We were incredibly pleased with the collaboration in Durham," explained Denise. "From busy mums, who promised themselves to get fit but have never found the time, to grandfathers who are getting fit for the first time, the set up allows the children to be safe, happy and having fun at Razzamataz, while the adults get to do their own work out, have a swim or simply unwind with a massage."

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FRANCHISE IN THE NEWS...

FRANCHISE IN THE NEWS...

Top that - Dominos UK wins worlds fastest pizza maker Advertiser's news published online and in Franchise Focus Magazine

Pali Grewal from the UK sets a new world record and scoops the trophy

In Las Vegas amidst 6,000 cheering spectators, Domino's Pizza named Pali Grewal the 2010 World's Fastest Pizza Maker. Grewal, a Domino's franchisee from the United Kingdom made three large pizzas in an impressive 39.1 seconds, setting a new world record. That's making three pizzas in 13 seconds each! Pali, Domino's first international winner, won $3,000 in prize money, a trophy and the coveted title of Fastest Pizza Maker presented by Domino's President and CEO, J. Patrick Doyle. "I've been hungry for this title for such a long time and it is just awesome to finally win it," said Grewal. "Like any great athlete, I've been practising and practising and now I am going to take a day off." The finalists represented Domino's Pizza stores from around the world, as far away as Malaysia. They had to hand-stretch fresh dough, pizza sauce and top three large pizzas - one pepperoni, one mushroom and one cheese - as quickly as possible. While speed was important, it was only part of the recipe. Quality was scrutinised as two judges highly qualified in Domino's standard pizza-making practices, inspected the stretching of the dough, application of the sauce and portioning of toppings during the competition. If the pizza was not perfect, it was returned to the competitor who remade the entire pizza, while still being timed. 8 franchise focus

Grewal, a multi store franchisee from Surrey has been with Domino's for over 18 years. Grewal has been making pizzas since he was 13 years old. Domino's began the "World's Fastest Pizza Maker" competition in 1982 to honour pizza makers who best exemplify the company's philosophy of keeping efficiency in the store to allow sufficient time for safe, timely pizza delivery. "Domino's Pizza is extremely proud to employ the fastest pizza makers in the world," said Doyle. "Our emphasis is on the quality of the pizza, while also using our expertise to get them made quickly. The goal for everyone in our stores is to get hot, greattasting pizzas to customers' doors as quickly as possible. The annual ĂŤWorld's Fastest Pizza Maker' competition recognizes those who do this with the speed of champions every day." The "World's Fastest Pizza Maker" competition was held at Domino's 50th Anniversary Worldwide Rally in Las Vegas and attended by nearly 6,000 Domino's team members and franchisees from around the world.

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FRANCHISE IN THE NEWS

FRANCHISE IN THE NEWS...

UK Franchise expands into Central Europe As one of the foremost business networking franchises in the UK, Business For Breakfast is pleased to announce its expansion into Central Europe. Having established itself as an invaluable networking tool for small and mediumsized businesses in the UK, Business for Breakfast (BforB) is now launching franchise opportunities in the Czech Republic. A key figure in BforB’s move into Central Europe is the Master Country Licensee for BforB Kamila Zarychtova, who has played a pivotal role in bringing the project to life. Shortly after meeting BforB at their head office in Eccles, Kamila moved back to the Czech Republic and began to research the viability of starting up franchises there.

As a nation, says Kamila, the Czech Republic looks set to become the next European economic powerhouse.

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Advertiser's news published online and in Franchise Focus Magazine

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"As thousands of former economic migrants return home to the Czech Republic, they are bringing back not only the skills that they took with them, but also invaluable experience of the way business is done in Western Europe and of the languages, customs and cultures of their host countries. This wealth of knowledge makes the Czech Republic the ideal location for British companies to expand into, both now and in the future."

Dream Doors franchisees make shortlist in the BFA Franchisee of the Year Awards 2010 Dorset-based Dream Doors franchisees, Andy and Shelley Stewart, have made it to the final three in the South West and South Wales regional heats for this year’s Franchisee of the Year Awards. Says Andy: “We’re delighted to have made it this far. We know there are over 37,000 franchisees in the UK, so to be considered among the best is a real honour.” The Stewarts performed well in their judging panel interview, standing up to intense scrutiny from some of the franchising industry’s leading luminaries, including Director General of the bfa Brian Smart, Head of Franchising at HSBC, Cathryn Hayes, and one-time Press Secretary to Margaret Thatcher – today president of the bfa – Sir Bernard Ingham. Says Sir Bernard: “Over their 21 years, these awards have celebrated the successes of franchisees from all corners of the UK. These individuals are recognised as examples of what can be achieved through hard work, with the backing of a well run franchise network.” However, it won’t be until September 30th (when the judges’ final decision is made public), that the w w w. f r a n c h i s ee k .com

Stewarts discover whether or not they have clinched the top prize. Says Andy: “Of course, we’d love nothing more than to take the Franchisee of the Year trophy home with us. But now we’ll just have to wait and see what happens.” The Stewarts, who joined Dream Doors, the UK’s largest retail kitchen facelift franchise, in 2005, have sustained an impressive annual turnover of more than half-a-million pounds every year for the past three years. But while financial performance is a key indicator of a successful business – particularly for its owners – the bfa judging panel is more concerned with individual attributes such as creativity and innovation, as well as the franchisees’ approach to customer care and best practice. The winner from each of the five regions will be announced at a Gala dinner at Birmingham’s NEC on 30th September. The winner from the five nominees will walk away with the coveted Franchisee of the Year title, plus a cheque for £5,000. Second and third runners up receive £3,000 and £2,000 respectively. In addition, each regional finalist will receive £500 from event sponsor HSBC.

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FRANCHISE LEGAL

FRANCHISE LEGAL

Considering joining a franchise?

The Legal Issues This article considers key issues that potential franchisees need to examine prior to joining a franchise.

specific territory.

Assessing the Franchisor A successful franchise depends upon the strength of the franchisor’s franchise model. Franchising is a method for a franchisee to set up in business with a reduced risk by following a tried and tested business formula. However, in order for you to assess whether a given franchise is a proven business system and not merely the right to sell products or services, you need to first undertake due diligence on the franchise itself. One of the best ways for you to gather information on a franchise is to make contact with the relevant country’s trade organisation/association. Throughout the world there are numerous informal trade organisations or associations which oversee franchises, such as the British Franchise Association in the UK and the International Franchise Association in the United States. These organisations/associations will usually be able to provide you with specific information about a chosen franchise together with general information about operating a franchise in a 10 franchise focus

Having undertaken due diligence on your chosen franchise, you must then closely examine the franchise package itself. Intellectual Property Arguably the most important aspect for you to consider with any franchise package is intellectual property (“IP”). Within IP, the key elements are usually: 1. Trade Marks; 2. Confidential Information and Know-how; and 3. Copyright. You need to be confident that the franchisor owns all the IP rights which it purports to licence to you under the franchise agreement. It is advisable for you to carry out independent clearance searches of the key brands on which the franchise is based, so that you can identify and evaluate any potential risks. This is particularly the case if you are considering setting up the first franchise in the territory in which you operate; for example, if you are setting up the www.franchisee k . co m


FRANCHISE LEGAL

FRANCHISE LEGAL first UK franchise for a franchisor who has previously only operated in the US and Canada. While the brand on which the franchise is based may be very well known overseas, you need to be alive to the fact that IP protection is territorial, despite there being many international treaties which facilitate the international protection of IP. Therefore it is possible that a third party may have acquired rights in the UK to a brand which is owned by the franchisor in the United States and Canada. As such, you need to ensure that franchisors have registered their trade marks in the relevant territories where you plan to operate. If franchisors have failed to do this, the ability to prevent “copycat” operations being set up in direct competition with your franchise will be limited. Therefore, the value of the IP which is being licensed to you is weakened. If the franchisor has not registered its trade marks, you should make it a condition of the franchise agreement that it does so. Additionally, you need to ensure that the franchise agreement contains a procedure on how to deal with any third party infringements of the IP which is licensed to you under the franchise agreement. It may well be that a franchisor has agreed to pay all such costs, to enable it to control infringement actions; alternatively there could be a procedure for the costs (and any damages that might be obtained) to be shared. However, you need to ensure that the agreement specifically sets this out. In terms of know-how, the most important document to any potential franchisee will be the franchise manual. This will be developed by the franchisor and provide you with the requisite know-how to operate the business by setting out the detailed operational instructions which must be followed. Wherever possible, it should be carefully reviewed so that if you have any queries then these can be raised at the outset. Further, depending on the nature of the business it is likely that franchisees will create customer databases. Rights will exist in these databases and franchisors usually seek ownership of these rights, or at the very least a transfer of these rights on termination of the agreement. However, where you are not proposing to enter into an exclusive relationship with a franchisor, you may legitimately wish to use these databases for other purposes. If this is the case, this needs to be expressly agreed and set out in the franchise agreement, bearing in mind that this issue will need to be considered in conjunction with the Data Protection Laws in place in the relevant territory. Structure and Taxation Potential franchisees need to consider how best to structure themselves prior to entering into any franchise business. If you are a sole trader or a partnership, you should consider forming a private company limited by shares or a limited liability partnership (“LLP”). w w w. f r a n c h i s ee k .com

The main benefit of structuring yourself either as a company or an LLP is the limited liability that is afforded directors/shareholders/members of a company or an LLP. As a sole trader or a partner, your personal assets are at risk in the event that your business fails. This is generally not the case for directors/shareholders/members of a company or an LLP provided that the business is operated legally and in compliance with the relevant statutes. Nevertheless, forming yourself either as a company or an LLP does come with unavoidable administrative burdens. These include ongoing legal requirements which must be complied with such as the filing of accounts and annual returns, which become publicly accessible documents.

Kristian Laingchild Solicitor Penningtons Solicitors LLP is a limited liability partnership registered in England and Wales with registered number 0C311575. Specialist advice should be obtained before taking, or refraining from taking, action based on comments in this article is only intended as a brief note. © Penningtons Solicitors LLP, 2009.

Tax will also be one of the determining factors when you are deciding on the structure of your franchise and should not be overlooked. Consequently, potential franchisees need to obtain good professional advice at the earliest opportunity. Fees Once you have obtained your due diligence and examined the franchise package, you need to consider the issue of fees. Establishing the level of fees paid for franchises is a difficult area for many potential franchisees. The franchisor will often propose a set fee for joining a franchise, together with ongoing royalties. They will usually be determined by 3 things: 1. the bargaining power of the parties; 2. the development potential in the proposed market; and 3. the strength of consumer awareness of the franchise brand in the proposed market. As a general rule, franchisees should try to negotiate lower up-front fees and fixed ongoing continuing fees calculated based on the net profit made by the business. This will mean that the financial benefit for both you and the franchisor will be dependent upon the success of the franchise, which should help ensure that you get the desired levels of support from the franchisor. Conclusion It is vital that you as potential franchisees consider the commercial and legal risks against the benefits of a franchise. In order for you to achieve this, you should obtain both legal and tax advice right at the outset. In addition to the legal considerations, you should also carry out commercial due diligence. Taking the prudent approach should help you on your way towards running a successful, long-term franchise business.

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FRANCHISE FINANCE

FRANCHISE FINANCE

Take your time selecting a Franchise by Mark Scott, NatWest

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FRANCHISE FINANCE

FRANCHISE FINANCE With an ever increasing selection of franchises to choose from it is paramount that a potential franchisee undertakes as much research as possible and takes their time making the decision. The decision to purchase a franchise is not to be rushed into, as there are many aspects to investigate, questions to be asked and professionals to consult. Over half of franchisors advise us that recruiting franchisees is their biggest barrier to growth, given the stable economy and the range of franchises now available. New franchisees, on the whole, are making a positive decision to start their own business by purchasing a franchise, rather than being forced into a new direction following redundancy. Taking your time to select the right franchise is imperative. Franchisors may offer attractive incentives for a decision to be made quickly. We recommend that this is not taken up, at least not until all your investigations have been carried out. Also existing franchisees advise that in a third of all cases projections are over-stated. Whilst perhaps this is understandable given the economic climate asking existing franchisees how they are actually performing will assist in your assessment. Before signing any legal agreement, or making a financial commitment thorough research is vital. You must satisfy yourself that your chosen franchise is a proven well-established concern with a proven track record and satisfied, successful franchisees. To find out if the current franchisees are satisfied with the support provided, obtain a full list of the franchisees. The named list should match the number of franchisees the franchisor states they have. Any less and they may be providing you with a list of the satisfied, or good performing franchisees only or they have misled you in the number of franchisees they have. When you have the list speak to as many of the franchisees as possible to gauge what they really think about the franchise, how are they performing and the training and support they receive from their franchisor. It is also a good idea to visit franchisees to get a better understanding of the way the business operates at first hand. This is not as easy with a new franchise, particularly if you are their first. In this instance you must satisfy yourself that the franchise has been piloted and the results provided to you. The franchisor should also have, or used, people with a proven track record in establishing a new franchise. The management must also have experience in their industry. Always seek appropriate professional advice including a suitably experienced solicitor that is affiliated to the British Franchise Association, who will be able to explain the clauses in the legal agreement to you. It is unlikely that the franchisor will amend any of the clauses, but you should be aware of the implications of them. To use an analogy, you should not buy a w w w. f r a n c h i s ee k .com

house without a survey, so do not buy a franchise without having the legal agreement checked. An assessment of the franchisor’s financial stability should also be undertaken, to ensure that they have the funding to support the franchise network. You can do this by asking your accountant to review their accounts or by obtaining a status enquiry on the franchisor through your own bank. NatWest lends to franchisees through a network of specialist Franchise Managers, who are based across the UK. They have a detailed understanding of franchising and mix this with the knowledge of the location in which they operate. When dealing with a potential franchisee the Franchise Manager will want to know not only which franchise you want to purchase but details about yourself, as it is the individual and not the specific franchise that we assess. This is because your success will be determined by the amount of commitment and enthusiasm of you. The Bank will lend up to 70% of the total start-up costs for a franchise, although this may be nearer to 50% for a less established concept. In view of the likely amount required, security, such as a second mortgage on your home, may be required. This will be discussed with you during a detailed meeting. Before we are willing to lend, a business plan will be required and should include details about the franchise, the costs, the sector it operates in, their competition, both locally, regionally and nationally, your CV, your assets and liabilities and projected financial information. The Bank’s Business Software, including a template business plan can assist in drawing up your own plan. If you are buying an existing franchise business we would like to see the actual financial performance; the last 3 years would be helpful. Many franchisors will assist in completing a business plan, however our Franchise Manager will expect you to know and understand the various statements and financial figures it contains. There will undoubtedly be questions about parts of your plan. The financial information, particularly the forecasts, will help you to assess the performance of the franchise in the early months. It should be noted that any Bank will not warrant, endorse or recommend any franchise. The decision as to which franchise to buy is left to individuals who should undertake thorough research into the franchise. NatWest also provides a free Guide to Franchising and there is further information available on our website www.natwest.com/franchise. If you would like a copy of this, or our Business Planning template please contact the NatWest Franchise Section on 0800 092 9117 or email franchise.retailbanking@natwest.com. franchise focus 13


FRANCHISE FINANCE

FRANCHISE FINANCE

Financial planning advice for the franchise sector in an economic downturn 14 franchise focus

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FRANCHISE FINANCE

FRANCHISE FINANCE As concerns over the UK economy continue to grow, it is essential that all businesses, particularly small and medium-sized enterprises, are properly prepared for financially-testing times. Sound business and financial planning is always important, but especially so in an economic downturn and franchise businesses are no exception. Debt management This is essential in an economic slowdown – you will soon encounter difficulties if you allow outstanding debts to accumulate, a problem which is all the more likely in lean times. Make sure you have a clear policy for collecting debts and that customers are aware of it. Above all, ensure you enforce it. Pursue outstanding debts with letters and telephone calls, and threaten legal action if you have to. Ensure that your terms of business allow for adding interest on overdue accounts. If your terms set credit limits, stick to them and stop supplying as credit limits are reached or bills go unpaid. Maintain customer loyalty In difficult times it becomes harder to attract new customers. Therefore, it is more important then ever to maintain loyalty amongst your existing ones. Consider ways of developing and rewarding customer loyalty, such as selected discounts (especially for early payment), regular mailings or loyalty cards. Beware of cutting prices If receipts begin to taper off, it can be tempting to cut prices. But this can be a mistake. In a recession your costs will inflate and as a result you may be forced to raise prices to cover this expenditure. Cutting prices can also have the negative long-term effect of devaluing your image in the marketplace which can, in turn, lead to damaging a franchisees relationship with the franchisor. Remember that suppliers might raise their prices as well, so try to negotiate a longterm discount with them. Don’t skimp on marketing The marketing budget is often the first casualty in a recession, but smart businesses continue to market through a downturn and position themselves to take full advantage of the upturn as soon as it starts. In tough times the marketplace becomes more competitive – you may need to market more vigorously, not less. If you do not have a strategic marketing plan, now is the time to draw one up. Look after your employees While job cuts may be necessary in some circumstances, you should always try to retain your key employees: their strengths will help you through an economic downturn, and you will need them when business picks up. Planning ahead Planning is vital for the success of your business. You need to plan the changes that can strengthen w w w. f r a n c h i s ee k .com

your enterprise against tough times, and how those changes will be put into action. However, planning is not just about ‘worse case scenarios’. Don’t confuse business planning with crisis management. The former should prevent the latter. Making time for planning now can reduce the time you spend fighting fires later. Here are six key steps that can lead to an effective plan for your business: Six steps to an effective business plan Step 1: Establish your mission In essence, your mission statement explains why your business exists. When you encounter a problem or a key decision, the answer will be informed by your mission. Think about why you started the business, what needs of the marketplace you aim to satisfy, and imagine where you want it to be in the future. These elements will provide your mission statement.

Phil Harrison F.C.A. Franchise Partner – Morris & Co e-mail: pjh@moco.co.uk

Step 2: Analyse your SWOT With your mission in mind, analyse your franchise business’s strengths, weaknesses, opportunities and threats. List each category in full and be honest. Done correctly, this ‘SWOT’ analysis will help you to take an objective, critical, unemotional look at your business in its entirety. Step 3: Develop a plan Try this exercise: from each SWOT category, choose three to five important items. Then set goals to maximise your strengths, correct your weaknesses, make the most of your opportunities and nullify your threats. For example, you could decide to focus more strongly on a particularly successful product or service (a strength), and abandon a side-project which is costing time and money for little return (a weakness). Remember that you can’t do everything yourself. Think about how you will delegate tasks and involve all the staff. Avoid dwelling on the negatives – set yourself realistic strategies for improving the business. Step 4: Create a budget All missions and strategies need adequate financial resources to succeed. A smart budget will help you to regularly review your expenses and make financially beneficial decisions. You may need to take a wide variety of factors into account when setting your budget. Step 5: Put it in writing Make sure you write down your finished plan. Include the mission statement, SWOT analysis, goals and plans, budget and forecasts, and make it clear who is responsible for doing what. Share it with your key staff franchise focus 15


FRANCHISE FINANCE

FRANCHISE FINANCE

"

Remember, a good business plan is as much about the process as the final document.

"

and shareholders, and encourage their input. Step 6: Make it a living document This is vital! Make your business plan a living document that you and your staff can frequently update and improve. Consider reviewing it monthly to track your progress and readjust your strategy as necessary. Hold yourself and your staff accountable for meeting the plan’s goals, and think about introducing an incentive programme to keep everyone motivated. …And six reasons why business plans fail You may well have prepared a business plan some years ago to present to your bank manager. If you revisit that plan now, you will probably be surprised by how little relationship the position of your business now bears to that predicted in the plan. The reality is that most business plans fail. Here are some of the traps to avoid: 1: A dead document A business plan that is created for a purpose and then discarded will always become obsolete quickly. Making your business plan a living document (see step 6) is essential if you don’t want the whole process to be a failure. Only a regularly reviewed and updated plan can be the spur to look critically at your business on a recurring basis. 2: Over-optimism Most business plans are over-optimistic, especially as regards predicted sales, often massively overestimating the size of the market. Research your market thoroughly. Too many business plans include a SWOT analysis, but concentrate on the strengths and opportunities and ignore the threats and weaknesses. 3: Ignoring the competition Business plans commonly assume that the competition will make no competitive response or indeed, will have no new initiatives of their own. Study your competitors and try to second-guess their plans. A living document will take into account their actions. 4: New or old? Too many business plans depend on doing something new, when what is needed is to find a better way of doing what is being done now. 5: Ignoring risk What are the risks attached to the plan? Think through these and the costs of failure as well as the rewards of success. 16 franchise focus

6: Profit or turnover? Remember the old adage, turnover is vanity, but profit is sanity! If expansion is planned, it should result in increased profits, not just sales. Expansion requires finance, people and other resources. Do you have adequate resources? Remember, a good business plan is as much about the process as the final document. Creating your plan will open your eyes to the realities of your business. Keeping it updated will help you stay on the right track. Keeping an Eye on Your Cashflow Cash is the lifeblood of a business, but with so much emphasis usually put on profitability, it can be easy to overlook this fact. Of course, the bottom line is important, but poor cash flow management can drive a growing and/or profitable company out of business. The risk is especially great for expanding companies. For example, if billing is delayed at the same time as stock is accumulated to fulfil increased orders, you can find yourself short of the cash needed to pay suppliers and employees. The benefits of projection Cash flow projections are critical, especially in times of need, but you don’t have to wait for a crisis to benefit from good cash flow planning. A properly developed cash flow projection can help a business foresee and prepare for potential shortages. Cash flow management can also help you: • Maintain adequate cash reserves to pay bills, expand the business and invest in facilities and product development • Reduce interest costs through managed borrowing • Increase interest income by transferring surplus funds into interest-bearing accounts temporarily • Receive discounts through bulk purchasing • Improve relations with the bank manager Businesses that prepare cash flow projections often learn something about their systems, the dynamics of their business, and the process often has other positive outcomes. For example, you might discover that you need to pay more attention to certain customers, or that you can defer payments to the suppliers more beneficially. If you follow the above advice you will, hopefully, “weather the storm”.

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FRANCHISE EXPOS

FRANCHISE EXPOS SEPTEMBER 2010 September 11 & 12, 2010 Canada’s National Franchise & Business Opportunities Show Toronto, Ontario International Centre Fee: $10

NOVEMBER 2010 November 6 & 7, 2010 The National Franchise & Business Opportunities Show Calgary, Alberta Stampede Park - Big Four Fee: $5

September 11 & 12, 2010 The Midwest Franchise Expo Chicago, Illinois Schaumburg Convention Center Fee: $8

November 13 & 14, 2010 The National Franchise & Business Opportunities Show Ottawa, Ontario Lansdowne Park Fee: $5

September 25 & 26, 2010 The National Franchise & Business Opportunities Show Edmonton, Alberta Mayfield Trade Center Fee: $5 September 25 & 26, 2010 The Franchise & Business Opportunities Expo Phoenix, Arizona Phoenix Convention Center Fee: $5 OCTOBER 2010 2 & 3 October Toronto Franchise Show Canada Direct Energy Centre, Exhibition Place 11:00 a.m. - 5:00 p.m $15.00 Tel: 1-877-337-1188 October 9 & 10, 2010 The Franchise & Business Opportunities Expo Northern Virginia, Washington DC Dulles Expo Center October 16 & 17, 2010 The National Franchise & Business Opportunities Expo Montreal, Quebec Palais des Congres Fee: $10

November 20 & 21, 2010 The Franchise & Business Opportunities Expo Cincinnati, Ohio Duke Energy Center Fee: $5 21 - 23 September BuyBrand 2010 Russia Expocentr on Krasnaya Presny, Moscow 11:00 a.m. - 5:00 p.m 8th International Franchise & other business opportunities exhibition Tel: + 7 495 287 03 63 2011 26-28 May 2011 IFE South Africa South Africa is at the centre of change and innovation in Africa. With all eyes on South Africa, now is the time to climb onto the franchise bandwagon and get in ahead of the next economic boom. IFE 2010 will showcase the very best franchise opportunities that South Africa has to offer. Tel: +27116150359

Surrey M25

Franchise Show Sandown Park Racecourse

October 16 & 17, 2010 The Franchise & Business Opportunities Expo Dallas, Texas Dallas Market Center, Main Hall Fee: $5

Free entry to meet over 35 exhibitors showcasing innovative, and inspiring, franchised business opportunities.

October 30 & 31, 2010 The Franchise & Business Opportunities Expo Orlando, Florida Central Florida Fairgrounds Fee: $8

• Planning to franchise your own business concept?

• Are you looking for a new career direction?

Investment levels typically £2k- £25k. Sandown Park Racecourse Saturday 4th September 2010 10am – 4pm Free Entry. Free Car parking. www.surreym25franchiseshow.com

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franchise focus 17


FRANCHISE ADVICE

FRANCHISE ADVICE

Is now a good time to

franchise your business? Yes, absolutely now could be an excellent time to franchise your business. However it is all dependent on the state of your business now. If you are to have a successful franchise business you need successful franchisees. The whole essence of franchising is that franchisees replicate the proven successful business model of the franchisor, so if you are not 18 franchise focus

successful then how can you unreasonable expect your franchisees to be. If however your business is currently successful and predicated to continue to be, then now may be just the right time for you to look at franchising.

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FRANCHISE ADVICE

FRANCHISE ADVICE

The economic climate over the last two years has resulted in the failure of many businesses. If your business has survived then you will probably be benefitting from less competition, and even though customer spend is generally down, it is also being spent with fewer companies. This may mean that if you franchise now, your franchisees may find it easier to establish themselves in their territory. One of the perennial problems for franchisors has been finding sufficient quality franchisees since there are only a certain number of people each year that consider buying a franchise. Traditionally there are three main types of people who have considered buying a franchise: 1) Those who have been made redundant and don’t want to go back into mainstream employment; 2) Those in employment that have always wanted to have their own business but do not feel they could start one on their own; 3) People who need a second income for their family but can’t or don’t want to get a job. The recent recession has had a dramatic impact on these three groups. 1) Redundancies: There have been a large number of people that have been made redundant and a significant reduction in the number of employers looking to recruit. Those people that have been made redundant are finding it very difficult to find alternative employment. Often the only real alternatives are to: stay unemployed; start a business; or buy a franchise. Most people who have been made redundant will need an income so staying unemployed is not a viable option. Often this group lack the skills to start their own business and may well lack the confidence as well. Their only real alternative is to look to buy a franchise. 2) Current Employees: With jobs for life becoming history, and company bonuses and pensions often reduced, there are many people in employment who are looking for a change; and for some of these people franchising can be the answer. The thought of being your own boss is very appealing particularly where you directly benefit the more successful you are. In addition there is the appeal of no internal politics and no chance of being made redundant. 3) Second Incomes: There has been a growth over the last year in the number of people buying part-time franchises. These typically are bought by people who are unable to work full time, normally for family commitments, but need an additional income. This may be because their partner has been made redundant, or their family income has been reduced. With the competition in the part-time job market being so competitive, franchising can be the answer. w w w. f r a n c h i s ee k .com

This means that there are many more people considering buying a franchise, which is good news for those considering franchising their business. However this is not a signal for businesses to rush in to franchising without the normal due diligence and planning that is required for any business considering major expansion. Franchising properly involves a real investment, both in time and money. Typically it will cost a business a minimum £25,000 to develop a franchise so that it is ready to start marketing the franchise opportunity, excluding the actual cost of the marketing. The cost can increase if a business needs to make changes to the internal systems and processes. However compared against the objective of establishing a brand nationally, franchising is normally a far cheaper and quicker option than expansion through company owned outlets. The first step for anyone considering franchising their business is to commission the “Franchise Development Model”, also known as the “Feasibility Study”. This will establish the viability of franchising their business and if viable, will create the detailed model for the franchise that all other parts of their franchise development will refer to. Over the last 12 months there has been a rise in the number of companies offering cut price franchise consultancy packages. Headlines such as “Everything you need to Franchise your business for just £4,999” are springing up on the internet. On the face of it whilst this may seem very appealing, especially when budgets are tight, the old adage stands true; “if it sounds too good to be true, then it probably is.” At Business Options we have seen a large increase in the number for businesses who have spent £4,999 on one of these cut price franchise packages only to find out that what they thought they were getting did not materialise and far from being a cheap way of franchising all they have done is wasted £5,000. If you want to grow your business and establish a national brand through franchising, don’t cut corners. You will be committing yourself to a long term strategy for your business with huge potential rewards if you get it right. So if you can not afford to franchise properly, then wait until you can. However if you serious about franchising and are prepared to invest the right amount to do it properly, your first step should be to speak to a British Franchise Association (bfa) accredited consultancy. A list of bfa accredited consultants can be found on the bfa website at www. thebfa.org/members.asp?category=1&bcid=10 . Alternatively speak to one of the High Street Bank Franchise departments for their recommendations as to which franchise consultancy to speak to. A list of the High Street Bank Franchise departments can be found on the bfa website at http://www.thebfa.org/ members.asp?category=1&bcid=1.

Clive Sawyer is Managing Director of Business Options Business Options are the only Franchise Consultancy accredited by all of the following: The British Franchise Association; The Irish Franchise Association; The Institute of Business Advisers; and The Institute of Business Consulting. Clive Sawyer is a Women’s Franchise Ambassador, Founder and Full Member of the “Encouraging Women into Franchising Group (EWIF)”. For further information about EWIF go to www.ewif.org or email info@ewif.org Business Options will be exhibiting at the National Franchise Exhibition, at the NEC Birmingham on 01-02 October 2010. Free Tickets available to companies looking to franchise their business by contacting Business Options at admin@businessoptions.biz

franchise focus 19


FRANCHISE AUSTRALIA

Lenore Miller

FRANCHISE AUSTRALIA

Women in Franchising on the rise in Australia by Johanna Baker-Dowdell, Strawberry Communications

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FRANCHISE AUSTRALIA

FRANCHISE AUSTRALIA Franchising is a popular business model in Australia and is becoming even more popular with women. The latest Franchising Australia 2008 Survey shows female franchisees who independently own their franchise unit account for 17 per cent of all franchisees. This figure has risen from 11 per cent in 2006 and means there are more than 12,000 female franchisees in Australia. This increase over the past few years can be attributed to a number of factors: many women consider selfemployment as a way to balance the needs of career and family, franchising is flexible and allows creativity within the bounds of the franchise agreement, many franchises can be started with minimal investment and the model encourages franchisees to grow their small business with franchisor support. Karmen Wakelin and Kylie Leopold started as endota spa franchisees in Adelaide CBD, South Australia, just over four years ago. They recently opened their third unit in Hyde Park after the success of their second, which opened in the state’s renowned Barossa Valley wine region in October 2006. Accolades continue for the pair, who won the coveted title of SA Franchisee of the Year 2008 in the FCA MYOB Excellence in Franchising Awards. With an annual turnover of AU$1.7 million in 2008 from two spas and approaching AU$2.5 million for 2009 with the third spa, this duo is certainly dynamic. As newcomers to franchising in 2004, Karmen and Kylie brought with them corporate marketing experience at global wine and spirits company Orlando Wyndham and other brands Coke, ANZ and Gandel Retail Trust. Franchisor support was a big drawcard for both women when they considered going into business together, Karmen said. “We decided to join a franchise as we were new to the wellness and beauty industry and we felt the support of a franchise would be beneficial,” she said. “Plus we recognised that we would be able to open the business a lot faster, rather than opening an independent business,” she added. Once deciding to become franchisees, Karmen and Kylie set about researching the brands that suited their values and interests. “We decided to join endota spa as the brand values and business culture resonated with both Kylie and I,” Karmen explained. “We have a fantastic partnership, which is imperative in any successful business. We both have strong business backgrounds and work ethic and we also have a good relationship with our franchisor,” she said. Their positive relationship with their franchisor works both ways. Karmen said her franchisor helped her and Kylie find a site to open their business, gave fit-out guidelines and recommended suppliers w w w. f r a n c h i s ee k .com

to undertake the work. The franchisor also offers marketing support, runs a national gift voucher program, distributes key supplies, negotiates supplier discounts, developed its own product range and provided training and operational support. “When we first joined the endota spa it was in its infancy and we received minimal support, however endota as a network has grown considerably over the past five years and the support has improved tenfold,” Karmen said. With its female slant, the beauty industry is not an unusual place to find women business owners. Karmen said working with female founders and a majority of female franchisees has been beneficial for her business with Kylie. “We tend to be working with a network of like-minded young women who are at the same stage of life. We share similar goals and have young families so are attempting to achieve a quality work/life balance,” she explained.

Biography: Johanna BakerDowdell owns and runs Strawberry Communications, a writing and public relations service to help businesses tell their story. Strawberry Communications is based at Wamberal and was launched in 2007. Johanna was also the bfa (British Franchise Association) Communications Manager. For more information email johanna@strawberrycommunic ations.com.au or log on to www. strawberrycommunications.com.au

The latest Franchising Australia 2008 Survey shows female franchisees who independently own their franchise unit account for 17 per cent of all franchisees.

Fellow first-time franchisee Stephanie Walls said female franchisees were treated differently in the printing industry, which is traditionally a maledominated field. “Customer relations and relationship building have been a big part of my success, rather than just wanting order. I’ve just added a different aspect [to the business],” Stephanie, who owns Worldwide Online Printing at Hamilton, Queensland, explained. “All the men [in the network] respect my experience and some even call me for advice!” Experience in the printing industry is something Stephanie can boast about. As a Worldwide Online Printing franchisee since July 2003 and 10 years working as a printing sales representative beforehand, Stephanie’s industry experience speaks for itself. “I grew up in a family business and always had aspirations to own my own,” she said. “I felt that I had the drive to be successful.” When it came time to become a business owner herself, Stephanie chose Worldwide because of the brand’s “business model, low in-store capital requirements and excellent quality-driven products”. “I chose a franchise that had a ‘family’ feel, as it was my first time in business and I wanted to know that I franchise focus 21


FRANCHISE AUSTRALIA

FRANCHISE AUSTRALIA would have the support from the franchisor and also from fellow franchisees,” Stephanie explained. The support mentioned includes mentoring programs, effective communication, franchisee meetings, problem solving, technical help and a sharing mentality. With a 2007/08 financial year turnover of AU$1.3 million, Stephanie credits her success to her passion and drive and five full-time staff, which have “ensured the continued growth of my business”. “I have had the luxury of empowering my staff with my strong customer service beliefs and it shows - from first impressions on walking into my store, to when you receive your product. I have instilled a ‘nothing is ever too much trouble’ attitude. All of our clients love that and know we will get the job done no matter what. We get a lot of referrals because of our service ethic,” she said. Stephanie believes her team’s commitment and the Worldwide business model has helped her achieve a great work/life balance in which to bring up her three-year-old. Like Stephanie, drive and motivation are two factors Irene Eboli credits as being key to her success as a franchisee. “Drive, motivation, work ethic, level of communication and that hunger to succeed,” she said. Irene owns five Shaver Shop units jointly with her husband Tino Eboli and sister-in-law Lorey Brown in Sydney, NSW. They started with an existing store in Chatswood in August 2000.

Deciding to buy a new Contours unit after searching for a friendly gym for herself, Lenore now manages her franchise at arm’s length. “I found many gyms intimidating so I went to join [another female-only gym] and they were really rude. I thought if they can be that rude and still successful then I could blitz it. Contours had a superior product, better equipment and a master franchise in Australia so I could do training here. People find they can relate to me and we have created a non-judgmental environment so women feel comfortable and can be themselves. Being who I am has been a benefit,” Lenore said. Initially working in her business for the first 18 months, the death of her eldest son forced Lenore to take some time out and fast-track her plans to appoint a manager. “I have a studio coordinator, Tina, so I can run the business at arm’s length. Tina started as a client and referred people to us. She’s so loyal and passionate about the business,” Lenore said. “I always planned on running it at arm’s length, but circumstances meant that process happened overnight, rather than over a longer time. My team had franchisor support while I wasn’t able to be there,” she explained.

“After six months in partnership I started to think I needed a change from what I was doing and convinced my husband we should buy the Parramatta store and I would manage it,” Irene explained. “When you first go into business and you’re the one paying the bills, you realise you have to get as much from every customer who passes the store as possible.”

Franchising was a new business model for Lenore after her previous experience with start-ups and existing companies. “I liked the idea of a recurring income. In the fitness industry you sell membership for a period of time and members pay monthly,” she said. “I would recommend franchising to other women, particularly if you’re not experienced in business. Franchising is a great way of having a business model without reinventing the wheel.”

The family partnership has certainly paid dividends, turning over about AU$7 million across five stores last year. “It has grown through a combination of our work and the company marketing the business,” Irene explained. As well as marketing support, The Shaver Shop franchise provides price negotiation and sourcing for products, advertising and training for its franchisees.

With steadily increasing profits Lenore has made a success of her fitness business. In the 2007/08 financial year Contours Maitland turned over AU$358,000, up from AU$306,000 in 2006/07. “I am really determined and I never wanted to fail,” she explained. “I ask myself ‘What do I need to do today to grow my business?’ If you don’t grow you’re in trouble.”

With no previous experience as a business owner, but a solid background in HR and retail, Irene had a steep learning curve. Within eight years she has leant much about business, but also taught others. “I put a lot of selling systems in place that the whole group embraced. My store has been the most successful,” she said. Lenore Miller’s previous business experience held her in good stead when she opened a new Contours gym at Maitland, NSW, in November 2005. Finance models she had used in a previous business venture were taken on by her franchisor and she quickly became one of the first members of Contours’ franchisee advisory council. Contours franchisees also benefit from a franchise development manager, 22 franchise focus

marketing material, TV and radio advertising, initial and ongoing training and an annual franchisee conference.

Links Franchising Australia 2008 Survey: http://www.franchise.org.au/content/index.cfm?ac tion=getfile&id=1224 Franchise Council of Australia: www.franchise.org.au endota spa: www.endota.com.au Worldwide Online Printing: www.worldwide.com.au The Shaver Shop: www.shavershop.com.au www.franchisee k . co m


FRANCHISE SOUTH AFRICA

Franchising gathers momentum after the success of the FIFA Soccer World Cup There is no question that franchising was one of the few business sectors worldwide that, despite the recession, continued to be a great contributor to the economy. This was borne out in past recessions with franchising holding its own and in some instances even thriving through a downturn and then, without fail, picking up momentum again and going on to become an even stronger force in the economy. South Africa was no exception and whilst there certainly was strain on the franchise sector over the past two years, the hosting of the FIFA Soccer World Cup gave a much-needed boost to franchise brands that were able to capitalise on the increase in visitor numbers and showcase their brands, many of them proudly home-grown. The diversity of franchising, which spans close to 20 different sectors in South Africa and over 50 in developed countries, and its propensity in basic commodities and basic services making it a necessity and not a luxury has added to its resilience and long term success. People, during the tough times, prefer to support familiar businesses where they are ensured of quality, service and value for money and franchising, with its strong branding, is the business sector of choice. According to Vera Valasis, Executive Director of FASA, the outlook for franchising in 2010, whilst cautious, continues to be positive. “Whilst 2009 was a trying time for most franchisors and franchisees, most were able to weather the storm with careful cost cutting and increased franchisee support. Typically franchising, by its very nature, is structured on very stringent business principles to maximise efficiencies and this stood them in good stead during the tough times. Whilst some franchise sectors suffered losses, others like those in the food sector drew on their innovative resources to re-price, re-position and adapt to the changing climate. Others, like those in the automotive services and retail sectors saw their businesses flourish as people chose to replace and repair rather than buy and retailers in the basic commodity market and second-hand market saw increased sales.” Although access to credit remains a concern, it has also made franchisors choose their franchisees more carefully, resulting in new franchisees that have the necessary financial gearing, are motivated and are committed to making a success of their business. And of course, one mustn’t forget that fascinating w w w. f r a n c h i s ee k .com

anomaly that some of the greatest companies and franchises have been started and built during the worst of times. According to Vera Valasis, the association represents the highest number of franchisors in its 31-year history and in the past six months over 20 franchises joined, many of them new concepts. With 88% of its 500-odd franchise systems local concepts, largely due to the political boycott of the country in the 70’s and 80’s, and with close to 30 000 franchisees spread across the country, South Africa’s franchise sector is set for even greater growth as the economy picks up. Thulani Cele, Chairman of FASA, is positive that franchising will continue to play a crucial role in stimulating the economy for many years to come. “Franchising in South Africa is under-utilized and is not given enough credit for the role it plays in the economy, in stimulating entrepreneurship, in establishing small businesses that make up the backbone of the economy and above all in providing close to 500 000 jobs. FASA would like to see government give more attention to the positive role that franchising can play in stimulating the small business sector and urges big business to look at the potential of using the franchise format as an alternate expansion mechanism.”

South Africa’s successful hosting of the Soccer World Cup has put the spotlight onto South Africa as the powerhouse of Africa and the springboard to the rest of Africa. International franchise brands have already shown interest in bringing their concepts to South Africa as part of their global franchise expansion plans.

FASA is playing a crucial role in guiding government in the formulating of the regulations of the Consumer Protection Act to establish national norms and standards relating to franchising. To this end, the regulations will closely follow FASA’s Code of Ethics & Business Practices which have been in operation for over 30 years and should go a long way to protecting both consumers and franchisees against unscrupulous operators. According to Eugene Honey, of Bowman Gilfillan and FASA’s legal adviser the Consumer Protection Act and its regulations pertaining to franchising will strengthen the position of existing franchisors that operate from a sound and ethical platform. “Franchisors now have a very important opportunity to get their houses in order so as to reduce any vulnerabilities and also to ensure their survival. For those who do not take the opportunity to refine their franchise business methods and become competent franchisors providing quality products and services, promptly at reasonable prices and otherwise deal with their franchisees in a fair, reasonable and equitable manner, it is likely that difficulties will arise.” franchise focus 23


RETAIL FEATURE

RETAIL FEATURE These are exciting times in Singapore. Singapore government has signaled a big push into green initiatives, and announced a focus on building green malls. Singapore is Asia’s retail Mecca. The shopping experience has evolved through the years, since the

inception of the first retail mall in the early 70’s to one of the swankiest retail malls - ION Orchard, opened in July 2009 on Orchard Road. So an announcement on green malls means serious business.

Building Green Debunking the Myths Wikipedia defines a Green Building as green construction or sustainable buildings. The art of building structures, using processes that are environmentally responsible and resource-efficient throughout a building’s lifecycle: i.e. from concept, design, construction, operation, maintenance, renovation, retrofitting and deconstruction. Green buildings are designed to reduce overall impact of the built environment on human health and the natural environment and are evolved around new technologies to complement current practices in creating greener structures. In essence green buildings achieve this by efficiently using energy, water, and

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other resources, protecting occupant health and improving employee productivity and Reducing waste, pollution and environmental degradation. City Developments Limited invests between 2% and 5% of the construction cost of a development on green design and features. The returns of this investment is reflected in the reduced use of natural resources, financial savings and even the possible increased capital value of the development. Moreover, through the implementation of green innovations, CDL is helping to develop the industry’s expertise and capabilities in adopting sustainable solutions for the built environment.

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RETAIL FEATURE

RETAIL FEATURE

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In the last ten years, several Singapore malls have metamorphosed from traditional vanilla malls to energy efficient, sustainable or “Green Buildings”.

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Ten critical components of green buildings 1

High-efficiency air-conditioning plant

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Motion detectors for all lighting & energy-saving LED lights

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Solar panels on the roof

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Indoor greenery and landscaping to mitigate urban heat island effects

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Lifts, escalators and travellators with auto-lighting, ventilation and slow-down features

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Use environmentally-friendly materials

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Use non-PUB potable water

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Sensors to monitor levels of indoor carbon dioxide and carbon monoxide

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Rain gathering / Rain water harvesting

10 Non-chemical water treatment for cooling tower What’s Green in Singapore The Building and Construction Authority (“BCA”) received the 2010 Energy and Environment Award presented by The Aspen Institute, for its comprehensive approach and efforts in steering the industry towards the development of green buildings and sustainable construction in Singapore. BCA is the first government agency outside North America to have clinched this prestigious award, given out by the international non-profit organization, which focuses on fostering thought leadership in global issues. The award is deserved. In January 2005, the BCA Green Mark scheme was launched as an initiative to drive Singapore’s construction industry towards more environment-friendly buildings. The BCA Green Mark provides a meaningful differentiation of buildings in the real estate market. It has been shown clearly a reduction in water and energy bills, a reduction in potential environmental impact and better indoor environmental quality. Clear direction is also provided for continual improvement. The industry has responded enthusiastically. The Singapore Green Building Council (SGBC) was formed in October 2009 to promote green building design, practices and technologies into mainstream design and construction. The mission of the SGBC is to: “propel the building and construction industry towards environmental sustainability by promoting green building design, practices and technologies, the integration of green building initiatives into w w w. f r a n c h i s ee k .com

mainstream design, construction and operation of buildings as well as building capability and professionalism to support wider adoption of green building development and practices in Singapore.” The efforts are showing up in malls. In the last ten years, several Singapore malls have metamorphosed from traditional vanilla malls to energy efficient, sustainable or “Green Buildings”. Five Singapore Green Malls. Two malls have been refurbished successfully to incorporate green elements. Capitaland’s Plaza Singapura mall has also been given the BCA Green Mark Gold Award. The revamped Paragon Mall has incorporated energy saving elements, where the three-dimensional facade comprising of multiple transparent, glazed and volumetric external pop-out glass installed above the walkway level have multifaceted layers of aluminum panels and fritted glass have in-built energy-saving LED lights. Orchard ION, built in 2009, is the iconic mall on Orchard Road. It has won environmental awards from Singapore’s Building Construction Authority. The double-glazed glass reduces the greenhouse effect; an elaborately landscaped roof deck absorbs heat; and photo sensors tweak lighting levels in response to available daylight.

Pushpendra has ten years of experience in real estate investments, asset management, strategic retail consulting and marketing in Singapore, Malaysia and India. He has worked with Alpha Investment Partners, a real estate private equity firm in Singapore with $5 billion under management. Prior to joining Alpha, he worked with CB Richard Ellis, Jones Lang LaSalle and Temasek Holdings in real estate transactions and consulting in India. Pushpendra has been published frequently on design, retail & franchising in various international magazines and newspapers. Pushpendra is an architect with a Masters in Real Estate Development from Columbia University. Pushpendra currently lives in Singapore. He can be contacted on pnsharma@gmail.com

Photo 1: ION Orchard franchise focus 25


RETAIL FEATURE

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...the only mall on Orchard Road to receive the prestigious BCA Green Mark Platinum Award in 2010

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Two finest examples of Green Malls in Singapore are: 313@Somerset Mall and City Square Mall. 313@Somerset Mall was built in 2009 and was the last site on Orchard Road that was developed. Owned by a Lend Lease managed fund, ARIF and Lend Lease, it is the only mall on Orchard Road to receive the prestigious BCA Green Mark Platinum Award in 2010. Bovis Lend Lease, the construction arm of Lend Lease, were responsible for the design, project management and construction. The retail design was carried out by Aedas Pte. Ltd. It is an eight-storied building with three basement levels including 2 levels above ground car parking with a GFA of 39,410 sqm. Some of 313@Somerset’s key green elements are its Green Lease and Tenancy Collaboration. The tenant’s provisions are specified in the Green Lease and there is a control on the energy usage (W/m2).

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RETAIL FEATURE

RETAIL FEATURE A concept of carbon offsetting car-park was introduced, where a small portion of the car-parking fees is used to fund solar panels. The objective was to offset the carbon of the vehicles getting to the mall. The solar panels are used to harness the sun’s energy to power up car-park lightings and barrier system. The use of sprinkler tank for thermal energy storage bank is a unique concept, where the waste heat recovery system is used to capture the heat rejected from the chiller, to heat up hot water to supply the entire mall’s requirement. Instead of tiled floors, corridors on the 2nd level onwards are carpeted, which is quite different from its competitors. The large frontage provides excellent visibility and the glass façade offers excellent visibility.

Green features at City Square Mall Designed for Energy Efficiency

The City Square Mall, which opened in September 2009 is Singapore’s first eco-friendly mall, and has also won BCA’s Green Mark Platinum Award. Lead Lease were involved in the concept planning, master planing, retail design and leasing for City Square Mall.

• Eco green roof with solar panels and waterharvesting capabilities

It is located at the junction of Serangoon and Kitchener Roads and it is directly connected to the Farrer Park MRT Station. It comes as no surprise then that City Square Mall was conceptualized with environmental sustainability in mind since day one. With its extensive green innovations, City Square Mall was designed to be a showcase of an eco-friendly and community-friendly mall. The 700,000 sft mall with over 200 tenants is also an effective platform for the Company to reach out to tenants and the communityat-large and raise their level of eco-consciousness through its programs and initiatives. CDL maintains extremely competitive lease rentals. It is important to note that a direct comparison of rental should also include other factors for consideration, such as the mall’s location, total lettable area and overall economic situation.

• Lifts, escalators and travellators designed with auto-lighting and ventilation fans and slowdown features

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• Sun-path analysis for effectiveness of sunshades and wall insulation • High-performance low-emissivity double glazing to reduce heat transmission • High-efficiency air-conditioning plant system • Lighting zoning and alternate lighting circuits for common areas • Motion detectors for toilets and staircases • Motion lighting sensor for vehicles at Basement 4 car-park

• Indoor greenery and landscaping to mitigate urban heat island effects

• Reduces total energy usage by approximately 39% compared to designs using standard industry codes • Electricity saved per year estimated to amount to more than 11 million kWh • Estimated reduction of 5,700 tonnes of carbon dioxide (CO2) emission per year (approximately 140,000 trees are required to absorb this amount of CO2 emission)

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RETAIL FEATURE

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Environmentally-sustainable Site / Project, Development and Management Practices: • Conservation of eco-system with transplantation of existing trees • Saved natural resources such as 50 truckloads of sand and granite by using environmentallyfriendly materials such as drywall partitions, non-chemical anti-termite system, recycled precast concrete kerbs, drains, wheel stoppers, etc • Use of non-PUB potable water for on-site cleaning saves 8 Olympic-sized swimming pools • Treatment and recycling of silty water during construction Designed for Good Indoor Environmental Quality and Environmental Protection: • Installation of sensors to monitor levels of indoor carbon dioxide and carbon monoxide • Designed with cooling load variations that correspond to thermal comfort • Air-purging system integrated with smoke extraction system for improvement of indoor air quality Design Innovations: • Installation of a twin-chute pneumatic refuse collection and disposal system (for separation of general and recyclable waste) • Odour-free and pest-free waste disposal system; twin-chutes encourage recycling amongst tenants • Rain sensors for landscape irrigation

• Motion sensor for lighting level control for vehicles at Basement 4 car-park • Cool breeze across Fountain Square fully powered by solar panels • Light sensors at skylight of podium block to control electrical lighting • “Eco-restrooms” with waterless urinals, motion sensors for lightings and indoor planting • Electric-car ready car-park with charging stations and dedicated lots for hybrid cars • Environmental-themed sculpture to raise public awareness on environmental conservation • Real-time display of indoor environmental performance for shoppers The Eco friendly elements incorporated by developers in Singapore will undoubtedly contribute its share to the much-needed effort to reduce global warming. Green malls are here to stay and the BCA revisions are expected to raise the standards of environmentally friendly buildings in Singapore, a move that would boost the country’s efforts in “greening” 80% of its buildings by 2030, an ambitious plan, which will put it ahead of other green capitals in Scandinavia, Dubai and Shanghai. “The good building is not one that hurts the landscape, but one which makes the landscape more beautiful than it was before the building was built”. - Frank Lloyd Wright Acknowledgement: I would like to thank City Square Mall, Bovis Lend Lease, Building and Construction Authority of Singapore and Singapore’s Green Building Council for the information and valuable inputs towards the successful completion of this article.

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PR & MARKETING

Focus on Marketing

Coconut Creatives Chartered Marketers Sarah and Chris Cook, founders of Coconut Creatives are having a very busy summer giving presentations, planning workshops and finishing their forthcoming book which focuses on franchise recruitment marketing. The company was founded in 2005 by Sarah Cook to directly respond to the needs of owner managed SMEs and franchised businesses that needed marketing expertise to ensure the success and progression of their companies. Chris and Sarah are both members of the Chartered Institute of Marketing and sit on the South West regional board. They help companies achieve their franchisee recruitment targets through strategic marketing campaigns, providing a complete service from planning strategic direction right through to implementation, ensuring the delivery of the key activities which include such things as e shots, website profiles, press releases Their unique expertise in franchisee recruitment marketing has been recognized by the BFA, of which Coconut Creatives are full members. “Marketing is both a structured discipline and a creative art, as is franchising. Building the one into the other is a continuing process that Coconut Creatives do, and do well. Coconut Creatives do understand franchising and we are delighted to welcome them to the BFA,” says Brian Smart of the BFA. Coconut Creatives has worked with many diverse companies in all market sectors, and has built an impressive reputation through their hard work and the results they have achieved. One satisfied client that specialises in exemplary customer service explains “There is little doubt that Coconut Creatives has made an enormous impact on our business. We now have our franchise marketing well underway and are on target to meet our goals for this financial year. I would recommend Coconut Creatives to anyone looking to franchise their business.” Jonathan Winchester, Managing Director and Founder of Shopper Anonymous UK. Sarah and Chris were commissioned to write the very first book on the subject of franchise marketing. Entitled Dream, Plan, Reduce Risk and Take Action the book begins by describing Chris and Sarah’s inspirational journey, from founding the business right through to their current situation. This gives w w w. f r a n c h i s ee k .com

the reader a strong sense of the ethical way in which Sarah and Chris believe in conducting their business. The book then explains in detail how Sarah and Chris plan and execute marketing campaigns for their clients, which gives a truly unique insight into the world of franchise recruitment marketing and unlocks the doors to the secrets of successful marketing recruitment campaigns. Sarah Cook says “Writing the book has been a brilliant experience and it is exciting for us to share our knowledge with companies that we have not yet had the opportunity to work with directly.” The book is due to be released in the early autumn. Coconut Creatives also regularly give presentations and contribute to marketing articles for a variety of publications. Recent presentations given include speaking at the BFA Annual Conference and at the specialist BFA seminar entitled “The Power of Marketing” which focuses on advising franchisors on how they should put together and implement marketing plans for their business. Chris and Sarah are launching their own Coconut workshops in the autumn. Run in small groups, these workshops will aim to equip attendees with the skills and knowledge required to plan and deliver their marketing campaigns effectively. The workshops will run as a series and are suitable for both new, inexperienced franchisors as well as those seasoned franchisors looking to refresh their franchise recruitment marketing and find those golden nuggets to take back to their business. The workshop will also include a brand review where franchisors can submit their branding and advertising for expert feedback by a Coconut brand professional at the end of the day. Each workshop will consist of a day-long consultancy in small groups and different days will focus on different elements of the franchise marketing mix. The most troublesome areas will be covered: franchise recruitment, franchise marketing and branding, franchisee marketing and management as well as the utilisation of online communication channels, maximising presence at exhibitions and the use of different promotional tools to promote the franchise package. If you would like to find out more about Coconut Creatives and the forthcoming workshops please visit www.coconutcreatives.co.uk or call 01963 360896. franchise focus 29


BUSINESS ADVICE

PR & MARKETING

How to promote your business through PR By Mel Betts, director of Grapevine PR

To make things very simple, instead of thinking of PR as public relations, think of it as press relations, or marketing through the media. By media I mean publications like magazines and newspapers but also radio and TV that your business’ target audience reads and listens to. If you hired a traditional PR consultancy 95% of the work they undertake will be working with the media. Unlike paid-for-advertising PR is about working with the editorial departments of media outlets and providing them with suitable content that they will publish – for FREE. However, instead of hiring a PR consultancy a lot of this work you can do yourself for minimal outlay. The best way to get started is to write a simple news or press release and aim to get it published in a magazine or newspaper that your target audience reads. Did you know for example that 80% of people read their local newspaper? With a tough economic climate anticipated for some time to come, marketing is one area that should not be ignored. However, marketing is expensive and if you are looking to reduce overheads, a shiny, new promotional campaign may not be an option. Yet how about considering public relations (PR)? It is one of the least used and yet most cost effective marketing channels available and it could just give you the edge over the competition that you have been looking for. Traditionally the PR industry has been very poor at doing its own PR and as a result few people actually understand what it is. This is compounded by complex definitions of PR that often leave the reader none-the-wiser. 30 franchise focus

Despite the continued growth of the internet, people still read hard copy magazines and newspapers and every day journalists are in need a constant stream of newsworthy, interesting information to fill their pages. This gives rise to the opportunity to supply material to the media and see it in print for free! In fact around 60% of the information you read in newspapers and magazines originates from organisations via material specifically designed for distribution to the press – often via a press release. The first step is to choose a suitable topic for your press release. Stick to one subject per release. Typical examples can include: new staff, new office space, an event or seminar the organisation is running, the www.franchisee k . co m


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PR & MARKETING

launch of a new product or service, the results of a customer research study, news of an important new deal or a company anniversary for example. The press release itself is the traditional way to deliver information to the media. It is a short, factual document designed to provide the key points concerning a news story and laid out in a way to make it easy to read and understand. The more journalist-friendly your information, the more likely it is to be printed. It should contain the logo of your organisation at the top, a clear indication it is a press release (use the words PRESS RELEASE in the top left hand corner), a title, around five paragraphs of text, an indication of where the printable text finishes (use the word –ends), followed by a ‘notes to editors’ section often called the ‘boiler plate’ which contains background company information, web address and contact details. The first paragraph is the most important part of your release. Journalists sub edit from the bottom up so if only the first paragraph was printed it should contain the “who, what, why, where, how and when” of the story in just a couple of sentences. If you are finding it hard to get started ask yourself the following questions: what has happened?; what is the service or new product?; what are the benefits?; who is it aimed at?; why is it different?; why is this development significant?; when will the change come into effect?; when & where will the new product/ service be launched?; which geographical areas is this announcement relevant to? how did the change/new product come about? w w w. f r a n c h i s ee k .com

The second paragraph is usually is made up of a quote from a company representative, outlining more detail about the story. It should include valuable information elaborating on the questions above rather than be a ‘quote for a quote’s sake’. The third and fourth paragraphs should contain additional information, features and benefits about the story, adding colour and detail. Keep paragraphs short, to just two or three sentences in length. A good rule of thumb is that each sentence should not be more than 35 words long. The final paragraph is usually a confirmation quote from the company representative. It could include a comment about the future direction of the company for example. The boilerplate or ‘notes to editors’ section comes at the end of the release. It often contains the same information that would introduce a company on the home page of a website for example. It is also the place to include contact details and information about where to obtain images to accompany the release. When it comes to distributing your story, try to be creative. Email is the easy route but if you are launching a new range of chocolates for example why not delivery the release by hand with a sample? In challenging economic times companies need to look at cost effective ways to promote their businesses and as such, PR should certainly not be overlooked. For further information about how PR can help your organisation or examples of press releases please visit www.grapevinepr.com

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BUSINESS ADVICE

PR & MARKETING

Fast track your prospecting cycle for 2010 New business prospecting Effective prospecting is a crucial element of any business development. However prospecting is not selling, it is creating and nurturing opportunities that generate leads. All businesses need sales leads in order to survive and flourish. In the current economic down turn how do you know who to prospect and how, without stretching budgets and neglecting existing clients? The Prospecting Stages Effective prospecting should not be just about big marketing drives to meet immediate revenue targets. It should be about short term and long term goals that can be measured consistently and incorporated as part of your wider sales strategy. Quite simply many fledging businesses struggle to get the balance right, either getting so caught up in delivering work that the marketing falls by the wayside, or focusing so much on the initial stage of prospecting that there is insufficient time left for following through and ultimately ‘closing deals’. “You must regularly sow the right prospecting activities to reap the rewards” So think of your prospecting as three harvesting stages: sowing, cultivating and reaping.

A timely follow up -whether you arrange a meeting, send an email, or make a telephone call is crucial to cultivate your new relationships and bring the prospect a step closer towards buying. Reaping (Winning the business) This is the reward for all your efforts -You win business, you get paid! If you endeavour to make things happen in all stages of your prospecting cycle then you will always be reaping (getting paid) as well as sowing the seeds for sales that will come. You must of course allocate sufficient time still to existing clients as well, as they are the foundation of your business. Essential Prospecting Plan So now we have looked at the different prospecting stages and why you should split your time equally, here are some essential tips to help you plan your prospecting activity.

To ensure your prospecting cycle continuously works for you - allocate equal time to all three stages!

1. Know your Target Audience Are you targeting more of the same type of client? Are you looking at trialling new vertical markets to ascertain potential level of interest?

Prospecting (Sowing) Activities This is the first stage of getting your name and message out there. Email marketing,

Or do you ultimately only want to target larger organisations? To leverage for e.g. 10% of your biggest client base?

exhibiting, telemarketing, text marketing, direct mail and networking to name but a few are all proven approaches to generate leads. The approach you choose depends on what you feel is the best approach to reach your target audience.

What are your defined geographical regions?

Perhaps you have had previous success with a particular prospecting approach? If not then a good place to start is to research your potential market, potential customer needs and also take a look at what prospecting works well for your competitors! Cultivation (Follow up) A quick word of caution, it is staggering how many businesses invest considerable time and resources in getting their prospecting right, only to then not follow up on any leads! I have seen the most alluring and successful exhibitors eagerly working a crowd 32 franchise focus

and gaining leads, only to not follow up on the leads. What a waste of money! And what a lost sense of purpose!

Build a list of your desired customers, and decide how you will reach them? Have a concise compelling message for each different target group. 2. Data Buying and maintaining good quality data is a crucial part of any direct mail, e-marketing or telemarketing campaign. The data you source or agree to use needs to be as accurate and targeted as possible. If the data has come from a variety of different sources other than a data company you can ask a data company to carry out data hygiene so that they can cross reference and delete any that are CTPS (corporate www.franchisee k . co m


BUSINESS ADVICE

PR & MARKETING telephone preference service) registered (opted out of receiving marketing calls or unsolicited emails) and duplications.

Prospecting checklist Where and how does your offering best fit? In which companies, markets and locations?

On average 25% of people change jobs /roles every year so data will have some inaccuracies.

Do you know from past experience which prospecting approach works best? For e.g telemarketing, exhibitions, direct mail or something else?

It is advisable that you clean data every time you use it for any telemarketing or direct mail campaigns in order to keep it as up to date and effective as possible.

If not then research your target audience and competitors.

If you decide to outsource any telemarketing a good telemarketing company will be able to advise you on data sourcing, data compliance, and utilise any data they are given and clean it as they make the calls.

How many leads on average does it take you to create one sale?

3 Recognise what constitutes a ‘quality lead to you? Prospecting should focus on quality over quantity; after all wouldn’t you rather generate a lower volume of leads but of a higher quality with consistent conversions?

Set targets for each prospecting campaign

A lead these days can come from so many sources you need to be clear on what constitutes a ‘hot lead’, a ‘warm lead’, a ‘luke warm lead’ and a ‘cold lead’ for your business? For e.g. a website enquiry looking to purchase from you in the next few days would be viewed as warmer than a postcard left in a box at your exhibition stand with no timescales for buying.

How much market share do you have? And how much do you want?

Karen Moore Founder Going For Growth Real Results, Rapid Growth Telemarketing Experts for sales Growth Telemarketing Lead Generation and Market Insight Telephone Performance Training www.thinksalesgrowth.co.uk Telephone 02392 820856

Measure Remember successful prospecting in the longer term should make you money not cost you money. Next time you are reviewing your sales growth and lead generation strategies-whether you want to prospect for new business, trial a couple of new verticals? Follow up on a recent mail shot or exhibition? win back lapsed accounts? understand your clients better? or simply to just discuss data compliance or seek advice we are always happy to advise and assist where possible.

Only when your business agrees on what constitutes a ’quality lead’ can you then set up a process for recording level of interest and following the interest through to hopefully a sale. Quality Qualification In order to give your prospective clients what they want, you need to understand their exact needs. In other words when you follow up your hot or warm lead you need to be clear on how you are going to further qualify and progress their level of interest. For instance a ‘quality qualification’ may include finding out what the prospective clients exact requirements are, level of urgency, budget and concerns are. What gets measured gets done Any telemarketing efforts should be logged onto an in house reporting system showing all call activity and level of conversions. Direct mail is 3 times more successful if followed up by a call afterwards. Contact names and addresses should be cleaned and updated prior to posting each direct mail batch. Direct mail campaigns and e-marketing campaigns should be tracked from when they were sent to when they were followed up and concluded. The success of any prospecting can only be determined if it is monitored and measured at every stage, with a full evaluation at the end of each campaign.

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MARKET TRENDS

MARKET TRENDS

Brand America by Daphne Kasriel

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MARKET TRENDS

MARKET TRENDS Many consumers seem to have a love-hate relationship with the USA. One South African participant in a Harvard Business School (HBS) study confessed: “I love their products, but I don’t love the country.” A Filipino contributor admitted: “I used to go on antiAmerican rallies when I was a student, but I never thought about the [American] brand of clothes or shoes I wore!” Background “For the last fifty years, marketers of American brands were happy to ally themselves with the values of their home country – Coca-Cola, Marlboro and Levi’s were paraded as affordable slices of Americana – and consumers everywhere in the world took them at their word. In turn, those brands became willing Ambassadors for the values which America wanted to portray as its own: liberty, for example, and material prosperity. Just recently, however, many big American brands have concluded that their homeland is as much of a hindrance as a help,” writes James Harkin in “Big Ideas: The Essential Guide to the Latest Thinking”. In his book: “Brand America: The Mother of All Brands” (2004), Simon Anholt offers a gloomy diagnosis: “If Brand America slips far enough in people’s esteem, there is a chance that American brands will one day have to work harder than others to downplay the negative associations of their country of origin.” Recent surveys consistently indicate that top US brands no longer tick all the boxes with global consumers. One survey by market research firm GfK Roper Consulting revealed that Coca-Cola, McDonald’s and Nike all suffered year-on-year declines in their “likeability,” in the year to 2007, particularly amongst consumers in developing Asian markets. According to the survey, about half of the 33 US brands listed showed decreases in scores based on three key areas: familiarity, likeability and the likelihood for consumers to recommend the brand. “Historically, American brands have always been the least-liked in other countries,” a spokesman said, adding: “This gets back to brand exposure and experience and the fact that some of these iconic brands are not so novel anymore.” The study argues that brands need to re-engage with consumers and allow their customers to contribute more of themselves to the brand experience. Google, Apple and Disney were cited as success stories which had improved their year-on-year likeability scores. Successful global brands engage with consumers in a way that feels local to them, GfK Roper has advised. Trust discount for the USA According to the Edelman Trust Barometer, an annual global survey, trust in companies is linked to national origin, industry sector and specific events. Its 2008 survey found a trust advantage for Canadian, Swedish w w w. f r a n c h i s ee k .com

and German companies and a discount for Chinese, Russian, Mexican and Indian companies. Global American brands, such as McDonalds and Exxon Mobil, continued to operate with a trust discount in Europe. The technology and biotech sectors are most trusted, the insurance and banking least trusted, with pharmaceuticals and energy trending up. Recent events have had a major impact on financial service brands such as Citigroup and Merrill Lynch. The survey identifies quality of products and services and value as major drivers of business trust globally, as well as reputation in the social, environmental and employment realms. Kellogg’s is an example of a trusted product that transcends anti-American sentiment. Kellogg’s, with its perceived wholesomeness, is considered the most trusted brand of breakfast cereal in ten European countries, including France and Germany, according to a 2008 Reader’s Digest survey covered on rdtrustedbrands.com. Quality sells According to the HBS report, in the eyes of many consumers a global product equals a quality product. One Russian focus-group participant told researchers: “The more people who buy [a] brand...the better quality it is.” A Thai consumer agreed: Global brands “are expensive, but the price is reasonable when you think of the quality.” Consumers also believe that global players are at the cutting edge of technological development. Their products are “very dynamic, always upgrading themselves,” maintained an Indian consumer. The survey found that while loyalty to domestic products was important, it was only 30% as strong as perceptions driven by a brand’s “globalness.” And in China trust in US consumer brands is at a record high due to recent domestic product scares, such as the contaminated milk scandal. According to the managing director of China Market Research Group, they feel the USA offers better quality control: “So on the consumer side, that ‘Made in America’ label is still very powerful.” According to the author of “Asian Brand Strategy”, millions of Chinese migrants to the cities want cars, gadgets and appliances, and success for them is defined by American lifestyles and products. On the other hand, the recent economic crisis means Chinese consumer confidence in US financial institutions has taken a nosedive according to recent survey results, reported The Economic Times in late October. Familiarity breeds confidence Chinese consumers are less adventurous than those in most other countries and tend to stick with brands they’re familiar with. A recent McKinsey survey found that when Chinese consumers try new products, they are twice as likely to opt for ones with familiar branding. It’s a calculated choice, when cheaper franchise focus 35


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MARKET TRENDS goods may often be of poor quality and could have major health implications, as in the case of food purchases. Once Chinese consumers recognise and trust a brand they are willing to pay a premium for it. The research also shows that as Chinese consumers become more sophisticated, nationalistic tendencies play a smaller role in consumer choices: 30% of respondents to the 2008 survey said they trusted only Chinese brands, down from 44% percent in 2007, and in the biggest cities just 13% expressed a clear preference for Chinese brands. The majority said they had no clear preferences based on a brand’s country of origin. A case of mistaken identity Many consumers globally, including in the West, don’t always register a brand’s nationality. In China, a large majority, according to the McKinsey survey, frequently mistake a wide variety of leading foreign products for domestic brands. These products have been repackaged with a Chinese identity: names, wrapping, and even the models used in advertising give them a home-grown feel. Crest, Pantene, and Motilium have used this approach successfully. They don’t actively conceal their origins but they don’t shout it from the rooftops either. Selling the dream Consumers look to global brands as symbols of cultural aspiration. Those in developing countries want a part of the American dream, and global brands like Coke, McDonalds and Nike are seen as a way of connecting with it. As one Costa Rican consumer told HBS researchers: “Local brands show what we are; global brands show what we want to be.” Maybe that’s why cut-price versions of the dream don’t do it for some consumers, as shown by WalMart’s expansion into South Korea. One factor leading to disappointing sales, according to a leading expert, is that in relatively affluent Korea, Wal-Mart’s low price ethos equals low quality associations. Even before the customer gets through the door, the stores’ brick and tile interior sends the wrong signal: they don’t provide any sense of wealth or status, important aspects of Korean culture. The allure of luxury Luxury goods will always find a market it seems, despite their provenance. According to an October 2008 survey by Nielsen Media Research, Calvin Klein is one of the most popular luxury brands among United Arab Emirates shoppers; three out of five UAE consumers have shopped at Calvin Klein and 59% say they opt for designer wear to project social status. One company that’s happy to trade on its American identity is Hersey’s, as consumer qualms don’t seem to extend to the confectionary industry. However, one marketing expert believes that if Hersey’s is to be successful in China it will need to adapt its products and packaging. Chocolate is still mainly regarded as a gift product in China, so Hershey’s traditional brown

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and silver paper packaging might be a poor fit for this market segment. For gift giving, Chinese consumers want luxurious packaging, so a makeover for Hersey’s may be in order. Social responsibility payback People expect more social responsibility of global companies than they do of local firms, and they’re ready to vote with their cheque books if they feel companies are falling short in areas of public health, worker rights, and the environment. It’s an attitude reflected in the comment of an Australian participant in the HBS study: “McDonald’s pays back locally, but it is their duty. They are making so much money, they should be giving back.” Such expectations are to be found in China, India and other developing countries as well as the West. Companies such as Hershey’s, which have a tradition of charitable giving, can up their profile in overseas markets by goodwill marketing, without raising cynical eyebrows The Obama Effect Barack Obama’s election has built up a groundswell of goodwill across the globe that might see Brand America topping the polls as the consumer’s favourite. The ‘Obama Effect’ could have an impact on everything from fashion to pet sales, as the Obama family decide on the breed of puppy to take to the White House. Interest in what Michelle Obama is wearing has skyrocketed since she gained widespread praise for the purple sheath dress she wore in June, when Barack won the Democratic nomination. Seen as a trend-setter to rival the stylish 1960s first lady Jacqueline Kennedy, she’s appeared in Vogue and been named twice on Vanity Fair’s international best-dressed list. The mid-priced J Crew and Donna Ricco ensembles she wore on television prompted record sales for both designers, and the dress she wore on election night from Narcisco Rodriguez’s spring 2009 ready-to-wear collection led to debate amongst fashionistas. She has even inspired a website dedicated to taking “a regular look at what and who she’s wearing” and building a following for “the budding style icon, Mrs O.” In the UK, tabloid newspapers have run features on “how to get her look”. Obamamania has even spread to toys and baby-wear, with everything from bibs to Obama action man figures and candy dispensers available online. Outlook Over the short to medium term, the near global euphoria over Obama’s election is likely to have a positive impact on consumer perceptions of Brand America. In the longer term, quality and aspirational US brands will continue to win votes globally.

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License Fee: ÂŁ9,000/250,000 population Territories: Worldwide In Business Since: 2002 Contact: Howard Dunlap Telephone: 001-800-518-3040

Alloy Wheel Repair Specialists is a Unique Diamond Unless you happened to land on this site while web surfing, there is no way you could ever know that a business such as this could offer you financial independence. Our franchisees enjoy the fruits of a rapidly expanding industry and have a great deal of fun participating in the energy of the evolution. The power of our growth momentum can only be compared to a select few organizations such as McDonalds, Starbucks, Coca-Cola, Home Depot, and Office Depot. Check it out for yourselves! Investigate! This is not sales rhetoric; it's a fact. Just talk to our people and learn the facts. If you are interested in owning your own business, don't miss an excellent opportunity to improve the quality of your life.

Be a Part of the World's Largest Mobile Wheel Repair Business Alloy Wheel Repair Specialists is the world's largest leader in the wheel repair industry. There are no close seconds. We have over 140 franchisees operating 400 mobile units, 7 re-manufacturing facilities and 20 wholesale distribution centers with an inventory of over 50,000 OEM replacement wheels. AWRS operates in 500 cities throughout the United States, Canada, England, Ireland, Saudi Arabia, France, Spain and Germany. www.mobilewheelrepair.biz/

novum publishing franchise: your chance to run a successful business

License Fee: Upon Request Territories: Worldwide Contact: Reisner Manuel Telephone: 00436769708091 w w w. f r a n c h i s ee k .com

We are a publishing house for new authors situated in Austria and operating on the market since 1997. Our novum publishing concept is based on the fact that many authors cannot find traditional publishers, because these are snowed under with thousands of manuscripts and so most new authors are ignored. Therefore the solution and alternative for new authors is novum publishing, which offers a wide range of services beginning from contract-making with the author to his own marketing plan. These services require a cost-contribution by the authors. The cost contribution by the authors is the main pillar of turnover for the publishing house. The novum publishing concept is ready. Get part of it now! http://www.novumverlag.at/franchise/ franchise focus 37


MARKET TRENDS

MARKET TRENDS

Regional Focus: Asia Pacific presents a sound prospect to businesses thanks to rising disposable income There are wide variations in disposable incomes and consumer expenditures across Asia Pacific, a region that encompasses industrialised states and emerging economies. The global recession had negative impacts on almost all of these countries, but the projected rise in disposable incomes, particularly in China and India, offer tremendous opportunities for businesses looking to explore the Asia Pacific region.

Key points Asia Pacific is vast, spanning industrialised countries such as Japan, South Korea and Taiwan, as well as emerging economies such as China, India and the ASEAN nations. Variation in per capita disposable income is therefore large, ranging from US$25,501 in Japan, to US$2,056 in China and US$839 in India in 2009; Between 2004 and 2008, real per capita disposable

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MARKET TRENDS

MARKET TRENDS incomes of the region increased by 4.1% annually, while per capita consumer expenditure increased by 3.1% annually. Under the 2008-09 global recession, these growth rates have slowed down to 0.9% and 1.3% respectively in 2009 over a year earlier; In 2010, China’s real per capita disposable income is forecast to grow at 8.8% annually, compared to 10.9% in pre-crisis 2007. In India, in 2010, real per capita income is set to rise by 4.6% annually, comparable to the 4.6% annual real growth in 2007; High levels of poverty and inequality could restrict income and spending growths in the region. In 2009, 15.9% of the population in China lived on less than US$1.25 a day; the equivalent figure for India was 41.6%; In the medium term, Asia Pacific per capita consumer expenditure is expected to increase at an annual average rate of 3.8% during 2010-2015 in real terms. Real per capita disposable incomes are expected to rise at an annual average rate of 4.2% over the same period. Regional patterns Asia Pacific is a diverse region. It contains industrialised countries such as Japan, South Korea and Taiwan, as well as emerging economies such as China, India, and the ASEAN nations. The region is therefore important because of the consumption power of mature markets and the significant potential of China, India, Indonesia and other emerging markets; Between 2004 and 2008, per capita disposable incomes of the region increased by 4.1% annually in real terms, while per capita consumer expenditure increased by 3.1% annually. Because of the impacts of the global recession, per capita disposable incomes increased by only 0.9% in real terms in 2009 over a year earlier, while per capita consumer expenditure increased by 1.3% in real terms in the same year; There are large variations within the region. The industrialised nations of Northeast Asia have the highest incomes and spending (US$25,501 per capita disposable annual income in Japan in 2009, followed by US$10,861 in Taiwan and US$10,830 in South Korea). China and the Southeast Asian nations (with the exception of Singapore) are less wealthy but have low poverty levels (for example, the 2009 per capita disposable annual income for China, Indonesia and Malaysia are US$2,056, US$1,557 and US$4,329 respectively), whilst South Asian countries are among the poorest in the region (countries such as India, with US$839 per capita disposable income in 2009); The importance of consumer expenditure also varies from country to country. In China, where household savings are high due to lack of social protection, private consumption accounted for only 34.0% of GDP in 2009. It also tends to be less important in Malaysia, a significant exporter of oil, constituting w w w. f r a n c h i s ee k .com

46.6% of GDP in 2009. For other major economies in the region, including India, Indonesia, Japan, South Korea and Taiwan, private consumption generally accounts for between 50% and 60% of GDP. Per capita disposable income and per capita consumer expenditure in selected countries: 2009 US$ per capita Source: Euromonitor International from national statistical offices/OECD/Eurostat China, India and Southeast Asia offer growth potential Countries with high growth of disposable income and consumer expenditure present attractive opportunities for businesses: China leads the region in terms of per capita consumer expenditure growth, expanding at an average annual rate of 7.9% during 2000-2009. Although China is affected by the global financial crisis, per capita consumer expenditure still increased by 7.4% year-on-year in 2009. This is due to the RMB4.0 trillion stimulus package introduced in November 2008, which subsidises the rural population to buy white goods such as washing machines and refrigerators until 2012-13, by which time 480 million white goods will be sold to the rural population; However, households in China save more than a third of their disposable incomes, which means that consumer spending accounts for only 34.0% of the nation’s GDP in 2009. The key reasons for Chinese to save so much are the lack of social protections such as healthcare. Whether disposable incomes could be translated into consumption depend on the government’s ability to enact social safety nets. China is starting to move in this direction, with a massive plan announced in January 2009 to improve its healthcare system. According to this plan, the Chinese government will spend RMB850 billion to ensure basic health insurance for at least 90% of China’s population by 2011; Southeast Asian countries have also seen high growth in disposable income and consumer expenditure: Consumer expenditure in newly emerging countries such as Vietnam, Indonesia and Malaysia grew at average annual rates of over 4.0% during 2000-2009. These nations have proved resilient during the 200809 financial crisis, in sharp contrast to the Asian financial crisis of 1997-98. Trade surpluses have contributed to healthy foreign reserves. ASEAN’s investor-friendly regime, educated workforce and good infrastructure have also helped it to attract nearly US$50 billion in foreign direct investment in 2008, versus China’s US$92 billion; However, Southeast Asian nations face a number of problems which pose challenges to continued growth. For example, Vietnam has serious infrastructure bottlenecks; Thailand continues to be plagued franchise focus 39


MARKET TRENDS

MARKET TRENDS by chronic political instability as anti-government demonstrations disrupts the economy, particularly tourism; Indonesia, ranked 111 out of 180 in the 2009 Transparency International Corruption Perceptions Index, is affected by rampant corruption and red tape. South Asian countries such as India and Pakistan have experienced slower growth due to higher population growth and less vibrant economies, but India’s longterm fundamentals are intact: A long-term rising trend in disposable income is taking place as a structural transformation is underway in India. One major factor is its favourable demographics, as over half of its 1.2 billionpopulation is below the age of 25, providing a massive potential workforce to drive its economy and consumption. India also has high levels of transparency and corporate governance, and a world class high-tech outsourcing services industry. Provided problems such as infrastructure and legislative reforms concerning FDI could be solved, a group of young, affluent middle class with strong consumption power could emerge. The Northeast Asian industrialised nations of Japan, Taiwan and South Korea have the highest levels of disposable incomes and expenditures but low growth rates due to their mature and highly competitive markets: Because of declining population, domestic demand in Japan is not foreseen to grow further. Meanwhile, the long-term prospects of Taiwan and South Korea depend on their ability to decouple from developed countries, meaning a shift from reliance on exports to domestic demand and positioning themselves as leaders of global growth. Poverty and inequality High levels of poverty and inequality, however, continue to restrict incomes and spending in the region: The Asian Development Bank estimates that extreme poverty, defined as living on less than US$1.25 a day, affects at least 10% of the population in 19 economies in the Asia and Pacific region (6 of which are from the former Soviet Union). In 2009, 15.9% of the population in China lived in extreme poverty; the equivalent figures for Vietnam, Pakistan and India were 21.5%, 22.6% and 41.6% respectively; Income distribution is generally unequal in the region. The Gini coefficient index (a measure of income equality, with 0 representing perfect equality and 100 representing absolute inequality), is over 30 in most Southeast Asian countries, implying high levels of inequality between the rich and the poor. In China and India, the Gini coefficient was 41.5 and 36.8 respectively in 2007 (the latest available year);

million people in Asia Pacific in extreme poverty. As Asia Pacific has weaker social protection compared to other regions such as Latin America and Eastern Europe, people falling back into poverty cannot recover easily. Opportunities for businesses While there are factors in the region restricting income and spending growth, the long-term trend is the emergence of a wealthier consumer market, driven by the growth of China and India: The emergence of a sizable, affluent middle class in China, India and Southeast Asian nations for the first time creates major opportunities for companies, as these economies move from consumption of basic household durables to more expensive items such as mobile phones, computers and white goods; India’s largely rural and agrarian countryside also provides more opportunities compared with China, as the ‘bottom of the pyramid’ segment aspires to an urban lifestyle. Business potential of poor communities are large in basic products and services such as telecoms, consumer goods, scooters and motorcycles; Meanwhile, significant variations in incomes and expenditures due to inequality across the Asia Pacific region mean that products and services have to be tailored for different countries. In general, Japan, South Korea, Taiwan, the coastal regions of China, Singapore and Hong Kong offer mature markets for high-end products, while Southeast and South Asian nations will be more suitable for budget products and services. Prospects Major emerging economies in the Asia Pacific region are posed for a strong recovery following the global crisis: In 2010, China’s real per capita disposable income is forecast to grow at 8.8% annually, compared to 10.9% in pre-crisis 2007. In India, in 2010, real per capita income is set to rise by 4.6% annually, which is a return to the same level of annual real growth in 2007. This region will be an important growth driver for global consumer companies which are struggling to find growth in other parts of the world; In the medium-term, Asia Pacific per capita consumer expenditure is expected to increase by 3.8% annually during 2010-2015 in real terms. Regional per capita annual disposable incomes are expected to rise at an average annual rate of 4.2% in real terms over the same period. The equivalent world average annual growth rates are 0.9% and 1.2% respectively. Asia Pacific therefore offers businesses a sound mediumterm growth prospect.

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ActionCOACH is currently ranked by Entrepreneur Magazine as the #1 business coaching firm in the world, with more than 1,000 offices in 26 countries. With a range of products and services including group coaching workshops and seminars, one-on-one coaching programs and a new executive coaching product, ActionCOACH is on the leading edge of resultsdriven and innovative global business development.

ActionCOACH is looking for Master Franchise Owner candidates who have excellent sales and marketing skills, business development skills, professional service and business-tobusiness skills, as well as a drive and desire to help other achieve success in business. With the business coaching market growth currently over $1 billion compared to a $50 billion market for business consulting services it is clear that for an ambitious and dedicated Master Franchise Owner the potential is there to build a thriving ActionCOACH business.

“World abundance through business re-education” http://www.actioncoach.com/

Unique T-Shirt

License Fee: €150,000 Territories Available: Germany, Austria, Netherlands, Switzerland, Scandinavia, Eastern and Central Europe: Romania, Czech Republic, Croatia, Poland, Middle East Worldwide Contact: Alicia Afza Telephone: 00352 229999 5758

If you are an investor and can’t find a suitable opportunity from our list of global franchise and business opportunities and would like us to take the leg work out of finding a suitable franchise, sign up to the Franchiseek Enquiry Bank.

Business Opportunity Exclusive areas available throughout the UK To reserve your territory, please call 07809 478825 or visit:

www.mylifesux.co.uk

Companies matching the type of franchise you are looking will then contact you direct to provide further information on their franchise opportunity. This service is FREE to investors and should save you considerable time sourcing and contacting the franchise of your choice.

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www.franchiseek.com - FRANCHISE DIRECTORY It's A Grind Coffee House - USA

ActionCOACH - Luxembourg

Ref: 10517 Coffee House featuring a Blues and Jazz motif Tel: 949.378.0775

Ref: 10568 Master license with ActionCOACH, the worlds #1 business coaching firm Tel: 003522299995758

Kumon Education - UK Ref: 10522 Individualised math and english support for children of all ages Tel: 0044800854714

Mathnasium - USA Ref: 10525 Mathnasium is a learning center where students go to boost their math skills Tel: 0014806595143

Pingus English - UK Ref: 10449 Linguaphone Group is a worldleading global language training provider, operating under the internationally recognised Pingu’s English, Linguaphone and Direct English brand name

Snap Fitness - USA Ref: 10481 24 hour coed fitness centers with state-of-the-art equipment Tel: 952-567-5808

0800 Handyman - UK Ref: 10344 A repair and maintenance service for domestic and commercial customers

5aDay Box - UK Ref: 10543 Van based fruit and vegetable box home delivery scheme supplying both organic and non organic produce

abacus Franchising Co. - UK Ref: 10457 Accountancy franchise only for qualified accountants. BFA Member

ActionCOACH - United Kingdom Ref: 10523 Coaching business owners to achieve their goals and overcome their challenges

Adult Prepaid - USA Ref: 10556 Master distributorship for Adult Prepaid branded cards Tel: 001.619.823.8742

Alloy Wheel Repair Specialists Inc - USA Ref: 10567 Allow Wheel Repair Specialists, Inc offer cosmetic wheel repair and straightening in a mobile reconditioning facility Tel: 001-800-518-3040

Animals at Home - UK Ref: 10456 Pet Care Service and the largest national animal ambulance and pet taxi service in the UK.

Auditel UK - United Kingdom Ref: 10464 Cost and purchase management consultancy Tel: 0800 583 3355

Blazes Heating - United Kingdom Ref: 10534 Management franchise advising and specifying domestic central heating systems.

Bluebird Care - UK, Ireland Ref: 3456 Leading provider of care in the home across a wide range of customer groups

Business for Breakfast Ltd - UK Ref: 10530 Business referral and networking

Caremark Limited - UK Ref: 9552 We provide the highest standards of domiciliary care throughout the UK

Charisnack - UK Ref: 10438 Supplying healthier snacks to the workplace using self-service boxes and vending

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FRANCHISE DIRECTORY

FRANCHISE DIRECTORY - www.franchiseek.com CityDirect Franchise Inc. Canada Ref: 9985 Local online advertising and web sites

CNA International - UK

Jan Pro UK & Ireland - Ireland Ref: 10536 Operating a franchised contract cleaning business

Kwiklite (Franchising) Ltd - UK

Ref: 10447 CNA International provides a suite of professional and executive search recruitment services

Ref: 10529 Lighting maintenance and energy saving services to the business community

Coffee News - India

Leckenbys - UK

Ref: 9658 Welcome to Coffee News, world's number one restaurant publication franchise! Tel: 0091-0-9327067935

Ref: 10519 Start your own up-market CafÈ & Chocolate Shop in your local town; invest in Leckenby’s proven business model.

Davis Coleman Ltd - UK

Little Angels UK Limited - UK

Ref: 567 As a Davis Coleman Franchisee, you provide a wide range of specialist services to the banking, building society, insurance and legal sectors.

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Ref: 10518 littleAngels photograph and produce modern portraits and group photographs in nurseries and toddler groups

MagiKats Maths & English - UK Dream Doors Limited - UK Ref: 5694 Kitchen facelifts

Esquires Coffee Houses - UK Ref: 5697 Speciality coffee house for premium beverages and food with relaxing ambience

Focus on You - UK Ref: 10513 Focus On You are offering you a franchise opportunity to start your own prescription eyewear retail business.

Go-Kart Party UK Ltd - United Kingdom Ref: 10471 Indoor or outdoor entertainment for Children all year round

Harcourts International Australia Ref: 10532 Cmmericla and residential proprty agents

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Ref: 10542 English and Maths TUITION CENTRES for children aged 5 to 16

Maid2Clean Franchise Ltd - UK Ref: 2132 A BFA management franchise at the forefront of the recession-proof domestic cleaning market. As more couples go to work the demand for domestic cleaners is increasing. Tel: 0845 257 6243

Marla Custom Blinds - UK Ref: 10369 Survey, supply and installation of window blinds for residential and commercial customers

Martin and Co - UK Ref: 10223 Residential property letting and management.

Mobil Affiche - International Ref: 10206 Mobil'Affiche, A Booming Investment - World Leader in Mobile Advertising Sector with a new Selective Scrolling System, Mobil'Affiche is represented in 20 countries all over the world. Tel: +33 (0) 1 46 97 80 94

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www.franchiseek.com - FRANCHISE DIRECTORY NBC Bird Pest Solutions - UK

Skidproof International - UK

Ref: 10515 A unique opportunity in a growing market for those with the desire to succeed!

Ref: 10566 Unique and patented health and safety product Tel: 07947 609099

novum publishing - Austria

TaxAssist Accountants - UK

Ref: 10569 novum publishing: the anchor and the solution for new authors Tel: 00436769708091

Ref: 9463 White collar franchise providing accounting and associated services to small businesses

nxo Strategic Marketing Network

The Business Partnership - UK

Ref: 10298 UK’s first and only strategic marketing communications agency franchise

Ref: 10514 Provision of business brokerage services to all market sectors

When the Music Stops - UK Ology Coaching Ltd - UK Ref: 10445 Business to business white collar opportunity

Ref: 10544 Join one of the biggest dating companies in the UK

Activ Web Design - Australia Oscar Pet Foods - UK Ref: 5639 The Complete Pet Care Service

Ref: 10396 Become a web designer with no previous experience! Tel: 08 6365 4910

Ask Me Digital Ltd - UK Phat Pasty Co - UK Ref: 9335 Delivering fab Cornish pasties and more to business and industry

Ref: 10403 Advanced digital media

Brewsters Chicken - USA PHR Systems Limited New Zealand

Ref: 10450 Chicken Franchise

Ref: 10538 Distribution of Groom Mate batteryfree nose and ear hair trimmers

Carlas Sandwiches Burgers USA Planet Beach International - USA Ref: 10540 Planet Beach Contempo Spa is seeking unit and master franchisees to develop the worlds first and largest automated Day Spa Franchise. Tel: 0015042971464

PVC Vendo - UK Ref: 10526 UK market leader of commercial vehicle exterior powerwashing and interior hygiene and sanitising of food carrying vehicles.

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Ref: 10451 Sandwiches and Burgers - Fresh sliced meat and fresh ground beef

Cash Generator Limited - UK Ref: 9290 An award-winning discount retail franchise success story Tel: 01204 574444

Choice Hotels Europe - UK Ref: 10400 Delivering thousands of room nights per year to our franchisees, our business is designed to yield tangible results time and again

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FRANCHISE DIRECTORY - www.franchiseek.com Creative Minds - South Africa

Pearl Marine Services - Bahrain

Ref: 10455 Successful business model, small management team, affordable and proven concept

Ref: 10528 Shipchandling, providing goods and services to ships at port Tel: 0097317728036

Dominos Pizza - United Kingdom

Razzamataz Theatre Schools Ltd

Ref: 10327 Domino’s Pizza is the leading player in the fast-growing pizza delivery market with 563 stores across the UK and Ireland.

Fire Compliance & Safety United Kingdom Ref: 10326 We provide fire risk assessments for UK businesses

Ref: 10357 Performing Arts lessons for children 4-18Yrs as seen on Dragons Den! Tel: 01228 550129

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Sangsters Health Centres Canada Ref: 9984 Retail Health Food stores that “Make Health a Habit”

Golf USA Inc - USA Ref: 10342 We are a worldwide golf retail speciality store Tel: 405-751-0015

Herbal Magic - Canada Ref: 10278 Join Canada’s most successful weigh loss and nutrition company 1996

Jani-King Ireland - Ireland Ref: 9921 #1 Commercial Cleaning Franchise company in the world

Labels4kids Ltd - United Kingdom Ref: 10292 Labels 4 Kids sells a wide choice of personalised name labels and stickers for children Tel: +44 1786 473508

Leadership Management UK Ltd - United Kingdom Ref: 10328 Training and development in the areas of leadership management and sales

Solexotica Tanning Salon -

Canada Ref: 9780 Providing a memorable client experience in a relaxing and rejuvenating environment.

Sparket Marketing Private Limited - India Ref: 10453 Customised corporate gifts with brand logo and merchandising products Survivor BootCamp Inc - Canada Ref: 9531 Those that are passionate about health and fitness are perfect to infect clients of SURVIVOR BOOTCAMP INC.

The Lunch Lady - Canada Ref: 10216 Preparation and delivery of nutritious hot lunches to elementary schools

The UPS Store - Canada Ref: 10010 We Print, Ship & More

Mister Transmission - Canada Ref: 10017 Canada’s leader in transmission service and repair since 1963

Topper’s Pizza - Canada Ref: 10156 Topper’s Pizza, “Best Tasting Pizza Ever” - Take-out and Delivery.

MOLLY MAID UK Limited United Kingdom Ref: 10320 Professional domestic cleaning service w w w. f r a n c h i s ee k .com

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Seeking an international franchise?

www.franchiseek.com Looking to become a master franchisee? Looking for greater growth? Looking for global expansion? Franchiseek.com is the global franchising website that helps franchisors and franchisees realise their dreams Franchiseek.com is a truly international site with more than 3000 pages of free, global franchise advice and news – and that’s not including the many hundreds of pages of international franchise opportunities.

Franchiseek Limited 129A High Street, Lymington, Hampshire SO41 3BA, United Kingdom.

www.franchiseek.com • The Franchiseek Global Alliance Network


Franchise Focus Issue 8