There are very many variations in franchise structures, for example, job franchises, solus franchises, management franchises, fractional franchises, area developer, regional developer, regional and master franchises. Even within these types there are variations depending on particular circumstances.

Some levy a management service fee that can range from 5-30% others operate solely on product mark up, some have a combination of both, some give exclusive territories and others don’t. Within their network some franchisors have more than one structure.

How the franchise is structured us crucial to the success of the proposed network. Many factors will need to be taken into consideration including company culture, management style and the aspirations of the franchisor, bearing in mind these factors are likely to change by design or otherwise.

Other questions that need to be addressed are how to maximise the appeal of the franchise, how to recruit franchisees of the right calibre and should you convert existing employees or not. Bear in mind that changes may have to be made in the existing business both in systems and human resources.

So, having read the books and attended the seminars you may be tempted to set up the franchise yourself, but unless you want to emulate your competitors’ mistakes (and you won’t discover them from a glossy brochure or exhibition stand) you should first obtain some professional help.

Your first port of call should be to a British Franchise Association accredited franchise consultant, who can offer a complete range of services from a feasibility study through to a full blown business plan. Services provided should also include operations and training manuals, reporting systems, organisational structures, writing the text for your recruitment brochure, presentations to your bankers (if raising capital) and writing a brief for the franchise lawyer.

If required, the consultant should also be capable of structuring the franchise for future expansion into European/Overseas markets. All services provided should be carried out by the consultant and not passed to intermediaries.

The franchise consultant should have a proven track record, be capable of designing and providing practical help to implement a franchise structure specifically for your business taking into account the resources you have available.

Above all, ensure that the consultants have actually run a successful franchised business in a high level capacity as theory is fine but the reality is very often different.

This article first appeared in The Sunday Times 19th April 2009

In all the daily doom and gloom about the state of the economy. One could be forgiven for worrying about what will I do if I lose my job or if my company has to shut down through a lack of business.

Well here’s the good news the world can be your oyster with a choice of careers and an opportunity to control your own destiny by seriously looking into franchising

UK Franchise Facts Source: UK February 2008 Franchise Survey by British Franchise Association & Natwest

• The franchise industry grew at 15% whereas the UK economy grew by only 3.1%
• The estimated annual turnover of the business format franchise sector is £12,4billion
• Using a strict definition of business format franchising, the number of active franchises identified was 809. This represents an increase of 3% on 2007 and demonstrates the increasing choice for potential franchisees.
• The number of franchised units is estimated at 34,200.

If you’re hardworking, want to succeed and have the confidence to go it alone but trading under an established brand in a proven business then you should be looking at taking a franchise. The types of franchises available range from a one man van service up to a master franchise for the whole of the UK and everything in between.

The cost can vary from £15,000 to £250,000 with the franchisor providing training in all aspects of the business including setup, business systems, marketing and operations to name a few.

Franchising is a partnership where both parties have a vested interest in success, while you own the business, ongoing support is there to help you.

As a franchisee you will be building up a saleable asset so that, when you sell the business, you will receive more than you originally paid, providing, of course that you have made a success of the business.

If you are thinking of investing in a franchise, look for those who are British Franchise Association (BFA) approved; take both legal and financial advice and talk to existing franchisees. In any new business venture always ensure that you have the backing of your family.

Finally if the franchisee projected earnings seem to be too good to be true then they probably are!

The information for this article was supplied by Franchise Your Business Limited

This article originally appeared in The Independent 9^th December 2008

Finding the right strategies to get through these difficult times is far from easy. The most common and immediate ones are cutting costs and consolidation. However, unless you’re on the brink of disaster, both these strategies are often knee jerk reactions searching for a quick fix, lead to shrinkage, decline and maybe demise.

Understandably, but unfortunately many boards of directors solely rely on these strategies because they are being conditioned daily to go into defence mode by bad economic news, accountants who want to justify their fees and bankers anxious not to lend. Every recession creates opportunities and just going into defensive mode creates insecurity, de-motivates staff, creates an air of gloom in the company and may lead to a lack of confidence amongst suppliers. Defensive strategies ignore the opportunities that an economic downturn can provide. So whilst your competition goes defensive the smart guys go into attack mode.

Attack mode means both improving your customer service levels and looking for ways to grow your business not shrink it. An attack strategy that focuses on both cost reduction and planning to grow will lead to greater prosperity in the long run, as this recessionary period requires a long term strategy to ensure that you come out of the downturn stronger and ahead of the game.

One attack strategy could well be Franchising – a strategy which has created many of today’s successes and well-known names.

Franchising has the virtue of devolving day-to-day responsibilities, operating costs and long-term employee liabilities to the franchisee who has a vested interest in success. Franchised outlets typically increase turnover by 10% over company outlets.

Perversely, the downturn has created a pool of quality people who are either fighting to survive in companies who are in defensive mode or who are already or soon to be unemployed.

But difficult times require senior executives to be determined not to be overwhelmed or fazed by the doom and gloom – let your competitors do that!

In these economic times an attack strategy calls for rapid action. That’s why one of the UK’s leading and longest established Franchise Consultancies has set up a Franchise task Force to help companies plan, structure and execute your switch to attack mode fast.

For more on Franchise Your Business Limited and the task force contact us on info@franchiseyourbusiness.co.uk

This article first appeared in the Daily Telegraph on the 27th January 2009