Whether you are just simply considering a change of direction or whether you already have your heart set on starting up a franchise business, the Franchise Show 2012 at ExCel, London will be the place to be on the 24th-25th February.

The Franchise Show is a key event for anyone considering a future in franchising as a place to find out about over 100 different franchise systems ranging from home-based and part time to master franchises all under one roof.

As an attendee, you will also have the opportunity to take advantage of the packed programme of over 70  seminars from industry experts to well-known UK entrepreneurs.

Attendance is completely FREE, so if you don’t yet have your tickets…. click here to get some.

Select Your Franchise will also be present at the Franchise Show for the 3rd year running – come see us on Stand 619.

Fiona Boswell - Senior Associate Solicitor, Freeth Cartwright LLP

Successful franchising this year depends on  taking a smart approach to resolving your disputes.

1. Focus on the deal not the dispute

Courts are focussed on the dispute – mediation focuses on the deal. Mediation is  private – (no courts and potential bad publicity), cost effective – (no court costs orders); and fast – (no long waits for trials and court hearings).

If you choose to mediate you want to reach agreement rather than fall out.  Going to Court is confrontational – it is all about “winners and losers”. Mediation is about negotiation – it is taking a business approach to resolving tricky situations in a way that benefits both parties.

2. Act Early

We see franchise mediations that could have resolved easier and quicker if mediation had been considered earlier.

How early is early? Right at the start, when fee payments start to be missed and when the first rumblings of discord start to happen amongst the network.

3. Take the Business Approach

Ever heard the phrase – “cutting your nose off to spite your face” well that is generally what happens when you go to court. Once done you can forget ever doing business with them again. Mediation does the opposite.

It helps (a) Preserve the relationship (b) Prevent damaging your reputation as a good franchisor (this alienates your existing franchise network and deters potential new franchisees); (c) save you time and money – disputes divert management resource from taking the franchise forward.

4. Be Creative

Mediation is more flexible than going to court. You can:

• Change the Payment Terms of franchise contracts
• Change the Contract Duration – Reduce, extend it – build in breaks
• Change your allocated territory
• Explore exit options – eg buying the business

Ultimately mediation is a creative process – it allows you to explore to options that might not otherwise be available.

5. Build it in from the Outset

Ensure your franchise contracts and operations manuals contain appropriate dispute resolution escalation procedures. The fact that you have disputes is not a bad thing – It is the way that you deal with them that matters.

It is good practice and savvy business sense to consider how you will manage disputes when they happen.

Fiona Boswell is a Senior Associate Solicitor at Freeth Cartwright LLP and Head of FC Franchise Build, Manage, Grow, Exit ™ Unit. You can contact Fiona on 0845 070 3812 or e-mail fiona.boswell@freethcartwright.co.uk

Nick Strong, MD - Select Your Franchise

With online shopping on the rise and an ever-increasing amount of people looking to the Internet as their first port of call for buying goods and services, online business opportunities are part of a fast growing market. Even for individuals that don’t in fact buy online, the world wide web is becoming a popular destination for individuals to research their options ahead of making a buying decision.

If you take into account the non-geographical nature of online business along with the extensive range of products and services that lend themselves to being traded online, its apparent that internet franchises carry a promising future.

An online franchise business is potentially a very attractive start up option as many of them  can be operated from a home office with no real need for commercial office or premises, which in turn keeps operating costs down.  The flexibility that this provides, forms an additional part of the attraction in that a web store can be open all day, every day.  This means your door is open 24/7 for guests and potential customers even if it is not humanly staffed, as opposed to a conventional business that requires constant staffing at any time that the store of business is open for trading.

A number of the online franchises presently available fall into categories such as:-

Local Community Directory Service Franchise business

These local business, website based franchises are an excellent resource for local communities to learn about businesses and services available in their area. The inspiration behind this kind of business is to sell the directory to local area businesses, offering them Internet-based promotional exposure to their local community.

Web Design and Marketing Franchises

These franchises are based around providing of web site design and marketing services typically to other businesses. The concept of this franchise opportunity is to make available a portfolio of website design & marketing options to probable buyers. In general, minimal technical skill is required by the franchisee as they basically resell services that are sourced and/or made available by the franchisor themselves.

Researching your Online Franchise Options

In common with any other business venture, its sensible to do your research prior to investing in an online franchise. Put aside time to look at your strengths and weaknesses and consider options which match you and the kind of activities you take pleasure in doing.

Finance will also be a big consideration so put aside time to explore funding options with your bank.  Make sure you have a chance to visit the franchisor and to look at their setup. It’s also important to have an opportunity to talk to a variety of their franchisees to pick up their views in relation to how the franchise opportunity performs for them day-to-day.

Be sure you also take legal advice as there will be legal contracts involved in starting up a franchise business and its wise to be appropriately informed and aware of what you are signing up to. When you have completed your choice, commit yourself to following the franchise system and making the franchise system work for you.

Cathryn Hayes - HSBC Head of Franchising

2012 is set to be another challenging year, with growth seen as a major concern for all of us.

The beginning of a New Year is a time when we think of changes that we hope will make our business leaner, more productive and more profitable. Here are our 2012 tips to consider for your franchise.

Maintain healthy cashflow

Effective cashflow management begins with minimising cost. Only buy what you need and bargain hard with suppliers. Aim to maximise your margins and sales. Ensure your invoices are sent out promptly and chase when due. Request deposits on order or cash on delivery for high-value sales and consider discounts for early payment. Get into the cashflow forecasting habit. It can help you identify potential cashflow crises in advance — and act to avoid them.

Read advice about cashflow management.

Stop doing things that don’t work

Sometimes in franchising, as in life, things don’t succeed — whether it’s a product that isn’t selling well, or a way of doing something that doesn’t have the desired effect. Sometimes it’s better to accept defeat and find a better way. It’s a New Year, so ‘out with the old and in with the new’. Doing things differently or stopping something can often materially affect profitability.

Find out how to increase profitability.

Strengthen your brand

Successful franchises are built on strong brands. Does yours need improving, or maybe even a total overhaul? And we’re not just talking about your logo, website, leaflets and stationery. ‘Brand’ means the entire customer experience, including how you answer the phone. Your brand is your personality; it’s what you stand for. How can you take it to new heights?

Learn how to create a strong brand.

Win new customers (and hang on to your old ones)

Inevitably you will lose customers, often through no fault of your own. So even if you just want to remain where you are now, you must win new franchisees, and that requires investing time, effort and usually money. But you also need to stay close to your existing customers and keep them happy if they are going to stay with you. Where possible, find ways to sell more to your existing customers.

Find out how to build customer loyalty.

Try something different

Trying something new can prove shrewd, perhaps by developing or introducing a new product or service, which could enable you to outflank your competitors. You might try to target a new market or diversify within an existing territory.

Get advice on new product development.

Harness the power of online social media

If you haven’t done so already, why not make 2012 the year your business finally embraces the marketing potential of Facebook, Twitter and LinkedIn? It takes time to build relationships and reputation, but such sites can deliver many more visitors to your website and drive sales.  For more information on Internet Marketing Strategies contact Nick Strong at Select your Franchise

Learn how to make the most out of online social media.

Revisit your business plan

A well-produced, regularly updated business plan can keep you focused on your development strategy and key business goals. And while you’re at it, why not revamp your marketing plan?

Get advice about writing business plans.

Work more on your business — and less in it

Allowing yourself to get bogged down in the daily demands of running your business is a common mistake, but it can mean your business fails to develop — at least in the way you want it to. Try to make regular time when you can step back from the daily grind to focus on the bigger picture and help your franchisees to do the same thing.

Find out how other businesses plan to achieve growth.

Good luck!

Posting from the monthly HSBC Connections newsletter. For more information or to get on the mailing list for the newsletter please email franchiseunit@hsbc.com

Mark Scott - Director, Franchise Development, NatWest

I am delighted to announce that NatWest are the Lead Sponsors for the second year running, for the Encouraging Women into Franchising (EWIF) Awards 2012:-

The EWIF awards recognise the work and achievements of women, in all aspects of franchising during 2011 .

The individual Award Categories are as follows:

• The NatWest Award for Woman Franchisee of the Year 2012
  Recognising the most successful woman franchisee during 2011 .
• The Recognition Express Award for New Woman Franchisee of the Year 2012
  Recognising the most successful woman franchisee during 2011 that became a franchisee after 1st January 2010.
  

  The Encouraging Women Into Franchising Awards

• The Coconut Creatives Award for Woman Franchisor of the Year 2012
  Recognising the most successful woman franchisor during 2011 .
• The WPA Award for New Woman Franchisor of the Year 2012
  Recognising the most successful woman franchisor during 2011 that launched their franchise after 1st January 2009.
• The Owen White Award for Franchisor Woman Employee of the Year 2012
  Recognising the most successful franchisor woman employee during 2011.
• The Franchise Show Award for Woman Franchise Service Provider of the Year 2012
  Recognising the most successful woman franchise service provider during 2011.
• The Business Options Special Achievers Award 2012
  Recognising the work of an individual who has made a major contribution to franchising.

Note: Individuals can not nominate themselves for this Award. The winner will be chosen by the judges based on their knowledge of the special work of the individual.

Award Entry Forms are now available via an editable PDF, which can be downloaded from the EWIF website. All entries must be received using the official PDF editable entry forms. The closing date for Award Entry’s is 25th February 2012.

I can also confirm that the Awards Ceremony will be held at the NatWest/RBS Building, 280 Bishopsgate, in Central London on Thursday March 29th, between 10am and 3pm. This is very near to Liverpool Street Station.

Mark Scott – Director, Franchise Development, NatWest

Joel Caws - Technical Director, Select Your Franchise

A domestic services franchise can be a great business start up option, especially when you consider that the services provided are often based on necessities for pretty much any home owner.

With over 25 million homes in the UK, and 7 out of 10 being owner occupied, thats over 175 million potential customers in the UK for anyone in business providing domestic services. A fair sized market by any standards.

There are many different types of franchise business aimed at providing domestic services:-

Domestic Cleaning Franchise businesses

The need for cleaning never ends! And for those ‘cash rich, time poor’ families, having someone to do the job of keeping the house clean is an attractive option. But that’s not all – there are also franchises which cater for more specialised services such as carpet and upholstery cleaning – another job which many prefer to pay to have done.

Handyman Franchises

For those not all that enthusiastic about DIY, fixing that loose door hinge, that persistently leaking pipe, that broken fence, can all seem like too daunting a task. Finding a handyman is usually the first port of call for such people and so a franchise business in this area means you have a wide variety of different manual labour based jobs to take on.

Kitchen Based Services

Sprucing up your kitchen by replacing the doors has become very popular in recent years, since it alleviates the need for a total ktichen refit, but also gives it a new lease of life. Oven cleaning is another popular domestic services franchise business option to meet the needs of those who do not wish to undertake the job themselves.

Other Domestic Service options

There are many other different domestic service franchise businesses  available from gas and electrical servicing, to chimney sweeping, to disaster restoration services.

Of course, whatever option you decide you will need to make your choices carefully. Do your research properly to ensure you know all you can about the franchise business you are considering. Meet with the franchisor and also make sure you have the opportunity to speak to some of their existing franchisees. They have walked the path you are taking and can offer you real feedback on how the franchise performs and what to expect.

There are plenty of options for advice when it comes to choosing a franchise opportunity such as online franchise directories for research, franchise associations, franchise consultants and other industry professionals.

Ultimately, you will be responsible for making your new business a success so be prepared to stick to the proven franchise system and to work hard at it.

Geoffrey Sturgess - Consultant Solicitor, Warner Goodman Commercial

Increasing use of on line directories by those seeking to buy services is undermining the efforts of franchisors to operate territory based franchise models for non-premises based franchisees.

Once upon a time customers looked for service providers in Yellow Pages and many franchisors still use Yellow Pages coverage areas as territory boundaries. It did not matter where the franchisee was based, as potential customers in his territory would find his contact details in their local Yellow Pages. It did not matter if he operated from a base in another franchisee’s territory as customers in that territory would not find him in their Yellow Pages or Thompson Local.

Until recently the use by consumers of Yellow Pages or an on-line search for a service provider’s website allowed franchisors to direct enquiries to the correct franchisee for the relevant territory. Now however, on-line directories such as Yell.com or Google Places direct searchers to the franchisee whose address is within the prospective customer’s geographical area of search irrespective of the franchisee’s allotted territory.

Changes in technology and buyer behaviour have thus overtaken franchisors’ contracts and operations manuals based solutions to the legal prohibition on enforcing strict territorial boundaries.

That prohibition stems from competition law disapproval of “export” bans and the suppression of price competition between businesses in different territories. It means that any absolute contractual prohibition on a franchisee from providing services outside his territory is potentially void, could make the entire agreement void, and the franchisor liable to fines.

The law does however recognise that franchisees and distributors are entitled to some territorial protection (it works both ways, your freedom to sell in my territory takes unfair advantage of my investment in marketing) and permits contractual restrictions on “active” out of territory selling. This means that the franchisee can be prevented from trying to sell outside his territory but not from selling to out of territory customers who seek him out—so called “passive” sales.

Historically, really cute franchisors have insisted on their franchisees only advertising a central telephone number in their advertisements so all calls came to franchise HQ and could be diverted to the appropriate territory franchisee.

Then along came the internet and enterprising franchisees could set up their own websites. Websites, even if they contain the franchisee’s out of territory address are regarded as passive selling so franchisors could not prohibit them. Suddenly customers using the internet could find and contact the franchisee nearest to them, irrespective of his territorial rights.

Franchisors responded by requiring franchisees to have pages (their own website) on the franchisor’s central website which did not include their out of territory address and sometimes, also, to only using a central telephone number. Although strictly franchisors should not prevent franchisees having their own websites as well, in practice, if the dedicated central page did the trick, franchisees were unlikely to set up their own websites.

The latest developments however, mean that potential customers no longer need to go to the franchisor’s website. Instead they go to an on-line directory and enter the search terms “plumber” in “winchester.” If the Southampton (ten miles from Winchester) territory franchisee happens to live and have his base in Winchester and subscribes to a land line (and you cannot have broadband or use a non-geographical number without one) that land line will have a geographical telephone number. Unless is it ex-directory that number and the name of the subscriber (Superfast Plumbing (Southampton) Limited) will be picked up by the directories and provided to anyone seeking “plumber in winchester”.

The franchisee responding to the resulting call and providing services in Winchester will be passive selling. The franchisor may be in breach of competition law if it prohibits it.

There are of course possible solutions. The franchisee could be required to use an ex-directory number, subscribe in his private name, or only use a mobile phone but all of these would mean his business would not appear on the on-line directories at all.

Alternatively all calls to his landline could be diverted to the franchisor’s central number for re-direction, or the franchisee could be required to pass all such calls, to the appropriate territory franchisee or just prohibited from passive selling. He could be required to maintain an accommodation address within his territory and subscribe for his landline from there.

These solutions have various disadvantages—loss of free advertising, additional cost, and the franchisee’s unwillingness to turn away business. Furthermore all require provisions in the franchise agreement or operations manual if the franchisor is to enforce them which are likely to contravene the legal prohibition on anti-competitive practices because they are intended to prevent passive selling. A better approach might be for the franchisor to positively assist the franchise to maximise sales within his own territory using the “new technologies” part of which could be setting up a scheme which discourages (but does not prohibit) out of territory sales. There are consultancies out there with the necessary expertise and some with specific franchising experience.

The anti-competitive behaviour prohibition is of agreements and concerted practices likely to restrict or distort competition in part of the UK or EU. As mentioned above export bans (and this would include bans on exports of goods or services across the boundary between two franchisees’ territories) are regarded as likely to restrict or distort competition. On the face of it therefore doing anything to restrict passive selling by one franchisee into the territory of another is contrary to that prohibition even if not legally enforceable.

There is however one saving grace. The law acknowledges that because the prohibition is so wide (two ice-cream vendors agreeing to operate at different ends of the park could be caught) that agreements and practices are only prohibited if they cause “an appreciable effect on competition” in the relevant area.

Most franchisees operate in intensely competitive markets (the example, of plumbing, being a case in point) and are in any event micro-businesses which, however hard they try, are unlikely to create “an appreciable effect” or to attract the attention of the competition authorities.

It is of course possible that a disgruntled franchisee could argue in court that his agreement was void for breach of the prohibition but such claims have not, on the whole, been successful in the past and in any event are expensive to run which may discourage such claims.

There is also the remote possibility that a third party could bring a claim against the franchisor alleging that he paid more for his plumbing than he would have done had full competition been permitted between the different franchisees. That is very remote indeed.

If therefore the average franchisor (this excludes large international concerns with substantial market shares) is being troubled by cross territory competition between its franchisees caused by the use of on-line directories it can be reasonably confident that sensible use of technological, contractual and operating manual provisions to prevent it is unlikely to cause legal problems.

For more information, you can contact Geoffrey at Warner Goodman Commercial on 023 8071 7424 or email geoffreysturgess@warnergoodman.co.uk

Joel Caws - Technical Director, Select Your Franchise

Back in 2002, when I initially began working within the franchise industry I was surprised on the huge variety of franchise companies out there, from the well-recognised, fast food chain restaurants that grace pretty much every shopping centre, to a multitude of home based franchise opportunities that you could call upon to have your boiler serviced, your garden tended to, your carpets cleaned, or the stone chips in your car paintwork repaired.

I think my biggest surprise was that I had, in fact, used many of these services myself with out even being conscious of their franchise heritage.  Just about any service you can think can, and probably already has, been franchised. Browsing through any of the on-line franchise directories will quickly provide you with an idea of the quantity of franchise options accessible to pretty much anybody with some capital to invest, a willingness to learn, a dedication to stick to the system and put in some hard graft.

So what are the advantages to a franchised business over traditional self-employment?

A proven business system

The heart of a franchise enterprise its is proven business formula. A franchise is  often born out of a traditional business which, after proving itself profitable, prompts the business owner to look for further ways to expand their already profitable business. The essence of the franchise concept is, quite simply, the replication of a proven business formula.

Having a business model which is already proven offers the key advantage over self-employment in that the franchisor has already done the hard work of trying and tested the business model. They have then documented the processes and procedures that makes it successful in order that it can then be adopted by another, giving them the power to duplicate their success.

Customer impression and the advantage of branding

Of course you don’t have to think hard to recognise the power of some of the big fast food franchise restuarants. This strategy of constantly enforcing a brand message means you go into any franchise outlet knowing what to expect… the same service, the same quality, the same product. This can provide a significant advantage over establishing your own personal unknown branded business. There are of course many smaller, lesser known franchise brands which even though maybe not as widely publicised, the customer impression that it is a part of a much bigger network can in itself deliver security and confidence to the shopper that can provide you with that all important edge over competition.

Funding

When providing funding for any business start up, the bank will always assess the most important thing – How likely is the business to succeed, and therefore, is the banks funding secure and likely to be repaid in a timely fashion.

Many banks look favourably on franchise start ups because they have a proven track record. Even in these more difficult economic times, the story from the banks is still one of being open for lending. The recession though, has put even more emphasis on the bank scrutinising any business plans to ensure that the chance of success is as high as possible; another benefit of choosing a franchise business since the franchisor can provide evidence of success to help backup the franchise business plans you go along with to the bank.

Training and support

Part of a franchise package is training and support to help make sure your business has the best chance of success. This doesn’t relinquish you of any responsibility, it is your own business after all, but it does mean that you are as equipped as possible to run a successful business or that there’s someone to talk to for advice and help when times are tough.

These are just some of the key advantages in selecting a franchise business over going it alone. However, franchising is ultimately an investment like any other business. Starting up a franchise business requires initial care and attention to make informed choices along the way and then working hard to ensure best possible chance of success.

Nick Strong, MD - Select Your Franchise

Considering a franchise is one thing – actually walking down the path of starting one up is quite another. If you are seriously considering a franchise as a route to starting up your own business, then making the right choices from the outset will help to ensure that you minimise the risk as much as possible.

As you look into buying a franchise, here are 10 things to consider:-

1. Examine your options carefully

Make use of online franchise business websites, franchise exhibitions and franchise publications to study the options available. You will discover a huge selection of franchises out there so don’t forget to search for something you’ll get pleasure from doing and that will suit your way of life and financial constraints.

2. Draw up your shortlist

You will find many different options, but you should quickly be able to elimate those that are of no interest or that are outside of either your available finance or desired trading location. Draw up a shortlist of those 2 or three options that you might genuinely see yourself doing. Request their franchise information packs either via an online contact request or give them a call.

3. Investigate Background

It’s vital that you identify who you are dealing with as you’ll be making a considerable investment decision. Take some time to find out the franchise company’s operating history. You might also wish to investigate the directors of the franchise companies and find out what other ventures they’ve got or are currently connected with. You could make use of online resources, such as the Companies House website, that can help with your research.

4. Get together with the Franchisors

When you are feeling totally knowledgeable regarding your selected list of franchisors, its time to make contact with them and arrange to meet up with them. Visit their head offices and get a feel for their setup.

5. Speak to Franchisees

Whilst you are visiting the franchisor, ask for contact details for some of their franchisees as recommendations. You can call them up and put to them questions on how the franchise performs for them as a business. Have they found the business to be profitable? Would they purchase the franchise opportunity again given what they now know?

6. Explore avenues for Financing

You might be lucky enough to have personal funds to invest from savings or a redundancy. But for many, they will require some external finance in order to start up a franchise. It pays to seek the advice of a bank manager in any case, or visit the franchise section of many of the high street banks. You can lay out your franchise plan and acquire some helpful reaction regarding what funding potential you might have.

7. Gut Reaction

Your gut feel concerning starting your own franchise business can’t be underestimated. It’s natural to have many questions and concerns, particularly as you become close to making a decision. The franchise operator, and any other franchise gurus you seek advice from through the process should be able to present answers and help settle your mind along your way. Nonetheless, if you are feeling overly anxious at any point, take a little time to work out what you might be worried about and resolve it prior to moving forward.

8. Get hold of some Professional Advice

There are a deal of specialist franchise consultants who have a broad understanding of the ins and outs of a franchise. They can help with matching you to a franchise business that works best for you in combination with helping the process move through smoothly. This can be of particular help if you feel overwhelmed by the options or just that extra confidence to help you make good, informed decisions in the buying process.

9. Legal Guidance

You’ll have to sign a franchise contract as soon as you have decided on the perfect franchise for you. It’s imperative that you take suitable legal advice from a franchise specialist solicitor that can help to make sure that any legal requirements are met and that can assist you understand the legal arrangement you’ll be entering into.

10. Lets get down to some good old fashioned work

A franchise opportunity, similar to each and every business, needs hard work. Don’t be fooled into thinking that a franchise will work automatically just because its a ‘franchise’. A franchise opportunity offers a verified system… however the system has to be worked hard in an effort to build a powerful and profitable business.

Cathryn Hayes - HSBC Head of Franchising

There can be no denying that 2011 has been a challenging year. However, HSBC lent at record levels to franchised businesses in 2011, and we are continuing to actively support the sector with the aim to further grow our lending book in 2012.

Banks are more likely to support a business with a well-researched and structured business plan, particularly those that demonstrate a strong understanding of their finances. Franchising has a number of advantages here. Although not recession-proof, the wide spectrum of sectors covered by franchising means that the UK franchise industry is likely to fare better in these difficult times. The failure rate for franchises is much lower than for standalone start ups. This is predominantly due to the support of the franchisor and other franchisees in the network, who can help new franchisees avoid the pitfalls associated with starting up a business.

So, how can franchisors help to support their franchise owners both new and existing? Monitoring and control is even more important than ever – knowing what is happening in your network has never been more important.

Planning is vital – even though none of us know what is round the corner, a robust business plan can help to keep a business on track and ensure that franchisees know which areas to focus on to keep their businesses healthy.

Try to ensure that your franchisees are working well with their bank. These are the problem areas – things which can lead to a breakdown in the relationship:

• not supplying agreed information on time
• failing to make loan repayments
• repeatedly exceeding overdraft limits
• unexpected or persistent trading at a loss
• not using facilities for the agreed purpose (such as personal expenditure)

Look at your own requirements as a franchisor too. We deal with a wide range of franchisors, from fairly small businesses setting out on the franchise route, to major corporates. Regardless of size, it is important to:

• Have a clear view of where the business is going – what are your aims for expansion? How much are you going to need to spend to achieve that?
• Keep good financial records and forecasts. In this way you can apply for new finance before you need it urgently. Banks will look more favourably on such requests as it shows you are in control and can plan.
• Understand how financial ratios work. They are good indicators of a business’ health and these are what banks use to assess your financial health and that of your franchisees.

Consider alternative methods of funding working capital, like invoice finance, which involves raising finance using your debtor book. The advantage of this is that cashflow is directly linked to business expansion. This method is not suitable for all businesses – your bank will be able to advise you.

Another funding method to consider is asset finance to fund the purchase of equipment for the business. This can help ease cash flow by spreading repayments over a period of time instead of making a one-off investment.

It is worth investing time to develop a strong relationship with your bank, making sure they understand your business model and can work with you to develop financial packages tailored to your individual needs and those of your franchisees.

To conclude, HSBC is definitely open for franchise business and finance will be available to quality applicants who can demonstrate they have a good understanding of their chosen franchise model and the financials of their business. We look forward to working with you and your franchisees in 2012!

Posting from the monthly HSBC Connections newsletter. For more information or to get on the mailing list for the newsletter please email franchiseunit@hsbc.com

Select Your Franchise are pleased to present their first mobile app for Android devices!

For some years, we have provided a mobile enhanced website at www.franchisesuk.mobi which provides a much more mobile friendly user experience than our main website that is best viewed on desktop PC’s or laptops.

Our Franchise Finder app, goes one step further in providing an easy to use online matching service that hooks straight in with our mobile website. By simply entering your details into our app, you can get quickly to a list of franchises that match your criteria saving you time and effort, and best of all – you can use it anywhere on your Android powered phone or tablet.

The app also saves your details so that if you then decide you could trade in a neighbouring county, for example, you need only change the county within the app as all your previous details are already pre-filled.

Scan the code above with your Android device

Download the Franchise Finder app from the Android Store today. It’s completely FREE to use. Follow the link below or simply scan the code to the right with your Android device to go straight to it.

Click here to see the Franchise Finder app on the Android Market

(And yes, we are also hoping to release an iPhone/iPad version very soon!)

Joel Caws - Technical Director, Select Your Franchise

I’m sure many would agree that 2011 has been a tough year. Rising unemployment, the Euro-zone crisis and the possibility of a double dip recession have become all too familiar topics in the media.

It seems nobody has been immune to the aftermath of the recession during 2011, but an interesting report commissioned by the International Franchise Association, has indicated that franchising looks to be on path for growth in 2012. Of course, these figures relate to franchising in the US, but could it also be a sign that franchising in the UK could be on target for a similar growth pattern?

The report indicates that personal services such as educational services and health-care will lead the way whilst even retail and property based franchises look set for growth in 2012. If a similar trend was to follow in the UK, it will make starting up a franchise business in 2012 a very attractive proposition, especially in the light of continued ‘doom and gloom’ speeches by the government at the turn of the new year.

Choosing a franchise business can present a great way to start up your own business without the ‘suck it and see’ of non-franchise self-employment. By building your business on an already proven business model, you can help to reduce some of the risk of starting up your own business. No business venture is without risk, but doing all you can to reduce the risk of failure wherever possible is just good business sense.

Thanks for all that have supported us during 2011, our customers and the many, many people who have found our service useful in finding the right franchise opportunity.

Unfortunately, our temporary staff member, Eric, couldn’t be with us this year due to the weather conditions not agreeing with him

The remaining team at Select Your Franchise would like to wish you all a very Happy Christmas and a Happy New Year!

Joel Caws - Technical Director, Select Your Franchise

For many, the Christmas and New Year period provides a great opportunity to relax, spend time with family or friends and take a well earned rest from the fast pace of life. It can also be a time when many of us are prompted to think about our future and what the New Year could bring.

We might make our New Years resolutions to get back down the gym and improve our fitness; decide to save up for a that long awaited holiday in the sun; or maybe it’s thinking about changing your job or employment circumstances. For those considering the latter, it might be that you have been doing the same job for many years and so are considering a change or it might be a change in life circumstances that is forcing you to consider new options.

If you are one of those who are thinking about new employment opportunities over the festive period, self-employment can be something that is considered but dismissed because of lack of knowledge or confidence over the broad range of skills required to successfully run and manage your own business.

Fortunately, there is a type of self-employment which can help in these circumstances. A franchise business is a self-employment option, based on a proven business formula which can provide the tools, training and assistance to ensure all the processes required to make the business work are covered. Of course any business will require hard work, but if you are willing to follow a plan and can be committed to work hard and make it work then a franchise business could well be your route to a new future.

There are hundreds of different types of franchise business in the UK, so if you are considering a new start over the festive season, why not take a look and see what kind of franchise business you could be owning and running in 2012.

Joel Caws - Technical Director, Select Your Franchise

A few days ago, a news article by the BBC reported that UK unemployment rose to 2.64 million in the quarter to October 2011, its highest level in 17 years. It’s clear that the effects of the recession are still with us for some time yet, with the danger of a double dip recession also snapping at the heels of the UK economy if this and next years quarter see a retraction in growth.

Despite the doom and gloom, many of those who have found themselves unemployed have taken control of their own futures by seeking to start up new franchise businesses. Franchises can give you the benefit of establishing your own business but with the added help of founding it on a proven, franchised business model along with the support and training of the franchisor.

If you are one of those affected by the recent rise in unemployment and facing the difficulties and frustrations of applying for new job vacancies with increasingly greater competition, starting up a franchise business could be your ticket to get you back on track.

If you have come out of a previous position with a redundancy package, then it could be that you decide to invest some of this capital into starting up a new franchise business venture. Though some franchises do require fairly substantial upfront franchise fees, there are others which are also affordable to those with lesser available capital.

Whatever your financial situation or preference, you will almost certainly be able to find a franchise business to suit your needs. There are hundreds of different franchises available in the UK in almost every conceivable industry sector from technology to manual labour, from business consultancy to children’s parties, from office based to home based, from retail store to mobile van sales, the list goes on.

If you want to take control of your future and think a franchise business might be an option for you, you could start by using a franchise matching service which is a quick way to find franchise opportunities that are available in your area and that match your preferences.

Joel Caws - Technical Director, Select Your Franchise

You might have your own great ideas for starting up a business but for those who would love to start their own business and are short on ideas, a franchise can be a great business option working from an idea that’s already proven.  Below we will look at 5 benefits of choosing a franchise.

1. The Franchise Formula

At the core of any franchise is its proven formula. This is mainly made up of the techniques and strategies that make the business work and that cause it to be successful. This formula also makes up the primary part of the franchise manual which is usually given to new franchisees as their business ‘bible’ to read and follow so that they can replicate the success of the original franchise pilot businesses.

2. Training & Support

Unlike starting up business for yourself, a franchise business is usually offered with a level of training and on going support. This is to enable you to run the business effectively and successfully by having a proper understanding of the franchise formula and how it is to be applied in  the day-to-day activities of the business.

3. Franchise Associations

Another benefit of considering a franchise is that many countries have a Franchise Association.  Generally speaking, the associations exist to promote ethical franchising in their respective countries by providing a membership scheme for franchisors. There is often a set of criteria which the franchisor must meet in order to become an approved member and this can therefore provide a level of assurance when choosing a franchise if they are an Association member. In the UK, this is the British Franchise Association and in the US it is the International Franchise Association. Additionally, the Associations may also be able to assist with any other help you might need such as pointing you in the right direction for franchise professional guidance for example legal and financial issues.

4. Proven Track Record

The good thing about a franchise is that you can often talk to other aspiring business people, just like yourself, who are already running the franchise you are considering as a business. The franchisor will usually be able to provide a list of franchisees that they are happy for you to contact as references for the franchise. It can give you extra peace of mind to meet and speak to people who have already travelled the road you are on and have already taken on and are running the franchise.

5. Financing

The majority of the high street banks have franchise sections that specialise in funding franchise business start-ups. You will still need to prepare your business plan but having the weight of a franchise system behind you can give the bank some extra assurance that you are working with an already established and proven business concept.

Finally, its worth noting that a franchise business is no guarantee of success; it provides a formula which if worked correctly, with dedication and determination, can provide the platform for a profitable business. It does, however, have some great advantages (some of which are mentioned in the points above) which can give you the edge over trying to start up a business from an unproven idea.

Presenting at the Franchise Supplier Showcase event 2011, Nick Strong outlines a number of services that can help franchise businesses understand and take advantage of the Internet in marketing their business. With more and more people spending longer online, understanding how to harness the marketing power of the Internet is becoming ever more important. Nick Strong is MD of FranWeb and SelectYourFranchise.com that together provide services to enable you to market your franchise business more effectively online.

For the rest in this series of videos – See Part 1 and Part 2

Joel Caws - Technical Director, Select Your Franchise

There are many reasons why we might want to work from home. The most common is likely to be young families that have to juggle family duties, such as school runs, with the need to earn a living. For others it might simply be the Utopian idea of not being answerable to anyone but themselves and being able to work at the times that suit them.

The downside of this is of course the danger that home life could take over your work time. It calls for a very disciplined approach in order to separate your work time from your home life. But for those that can successfully manage this work-life vs. home-life tension, it can provide a great compromise. Some of the qualities you will need to run a business from home are:

• Flexibility -The ability to juggle home life and business and deal with interruptions
• Focus & Discipline – It is vitally important that you can be disciplined enough to protect your work time from distractions and maintain focus on your work.
• Determination – A high sense of commitment and drive to succeed will ride you through the more difficult times which every developing business goes through.

The second challenge is of course having a business idea or model that can work successfully as a home based business.

If you have your own ideas then you will have a good starting point for developing your own business. You will, though, be faced with the challenges of trying and testing your business idea, making inevitable mistakes, and fine-tuning your business model to make sure the mistakes don’t happen again. Providing you can withstand the associated cost of any mistakes, you could end up with a sound business.

For those who find that prospect a little daunting, there is another way of starting up a home based business which can remove some of the pain. A franchise business is one that was started up like any other business, has had its share of mistakes and has been fine-tuned to the point where it’s become a proven and profitable business. Some business owners decide to ‘franchise’ their business at this point. This is similar to licensing the business in that other aspiring business owners can take on the proven business model and brand and run the new business.

If you are interested in finding out more about how a franchise could help you start up your own work from home business, you can check out our home based franchises section as a starting point.

Cathryn Hayes - HSBC Head of Franchising

There is no denying that 2011 has been a difficult year for UK businesses. The economic recession forced sweeping changes in strategy for many businesses – add to this the change in Government at last year’s general election, increased unemployment and reported lack of available credit and it’s not surprising many firms have struggled.

However, with significantly better success rates than other businesses, the franchise industry is key to promoting job creation, stimulating economic growth and encouraging new start-ups. This is mainly due to the wide spectrum of industries covered by franchised businesses, the strength of the business model and the support provided by franchisors and other franchisees within the same networks.

Nowhere is this success more evident than this year’s bfa HSBC Franchisee of the Year Awards. Financial stability, innovation, creativity and the relentless pursuit of success were just a few traits demonstrated by this year’s finalists.

The overall winners, Mike and Catharine Chalton from Home Instead Senior Care in Wirral, showed that their key success was providing excellent customer service which has resulted in their business going from strength to strength. They are a true credit to the franchising industry, and an inspiration to small businesses across the UK.

So what about finance? Put simply, there is still plenty of funding available for sound business propositions. Your franchisees are in a stronger position than a standalone start-up business because of the help and support available to them. Requests for funding are more likely to be agreed if franchisees present a professional and credible business plan.

This could be the time to think about switching your business. There is often a nervousness that surrounds ‘switching your bank’, for fear of disrupting vital transactions. The UK’s leading banks, including HSBC, have signed up to a banking industry code that means they must make account switching speedier and easier for customers who have made their mind up their mind to change.

We have consistently welcomed new franchise business, and we are confident that by the time 2011′s Christmas trees have been packed away HSBC Franchise Unit will have improved on our 2010 lending figures by 200%.

Posting from the monthly HSBC Connections newsletter. For more information or to get on the mailing list for the newsletter please email franchiseunit@hsbc.com

In part 2 of “Internet Marketing for Franchise Business”, Nick Strong discusses the increasing importance of Facebook, LinkedIn and Twitter to your business. Nick looks at how using these important social platforms can make a difference to the growth of your franchise business.

This presentation was recorded during the Franchise Supplier Showcase event in November 2011.

For the rest in this series – see also Part 1 and Part 3

Joel Caws - Technical Director, Select Your Franchise

At different points in our lives, we all need to take time to reflect on the direction we are going and the future. This can often be true of our work or job situation. Sometimes, it might be just to confirm that the employment path you are on is the right one for now, or it might be that you feel its time for a change or to move on to something new.

If you are one of those who are considering your career future, then one aspect you might be thinking about it the possiblity of working for yourself, or becoming self-employed. Many people consider self-employment as it provides flexibility and the freedom to manage time as you wish whilst also providing a platform for you to earn a living and build a business venture that is your own.

However, the challenge can be finding something to do that is going to work and that will prove to be profitable. If you are lucky enough to have some great ideas that could work then you may well decide to build you own business on those ideas. But if you are one of those that need a little help in the ideas department then a franchise business could be just what you are looking for.

Starting up a franchise business is basically starting up your own business venture using somebody elses proven business idea. The advantage of this is primarily the fact that you are starting out with a business model which has already been tried and tested, so you know that in practise it can be the foundation to building a profitable business. In addition, most franchisors provide relevant training and support so that you can make the most of the franchise business and drive it to its fullest potential.

If you think that a franchise business could be the answer for you, the first step will be to determine the right kind of business for you. There are literally hundreds of franchise business systems operating in the UK and so identifying the right one for you can seem like a challenge at first. Fortunately, the advent of the Internet has helped remove much of this by the fact there are a number of different franchise directory websites available. These websites provide helpful search tools that let you filter down the many opportunities available into a short list that can fit your preferences and budget.

So, if you are considering starting up your own business, a franchise business could be just the new direction you are looking for.

The Internet is becoming ever more important for any franchisor that wants to grow their business. But how can you best harness this potential?

Nick Strong, MD of Select Your Franchise, discusses the importance of having a strategy for how your franchise business is marketed on the internet.

In Part 1, Nick looks at the importance of finding out what people are searching for online so that you can focus your internet marketing strategy effectively to target the right people with the right message.

In Part 2, Nick discusses different Social Media platforms such as Facebook, LinkedIn and Twitter, and looks at how these are important to your franchise business.

Brian Duckett addresses the attendees of the Franchise Supplier Showcase

The 2011 Franchise Business Booster and Supplier Showcase was held this year at the National Motorcycle Museum on 18th November.

The event achieved its goal of saving franchisors the research required to seek out good suppliers of specialist products and services for their businesses. One franchisor summed the day up by saying “It would take me months or even years to discover all of these suppliers on my own”.

Another interesting view of proceedings came from the companies present who are taking their first steps in to franchising. Many were genuinely surprised that there are so many suppliers with offerings that are bespoke to the franchise sector. One commented “This is a whole new world for us and this event has opened it all up for us.”

The event is organised by The Franchising Centre and Chairman Brian Duckett commented “Franchisors tell us they like this event because it saves them time and effort sourcing suppliers. To support them further in this direction we have launched a new website that is a directory of franchise suppliers. We anticipate it will become the first port of call for any franchisor looking for a supplier and it’s even an easy name to remember:  franchisesuppliers.co.uk”.

Once again proceeds from this event went to the Trussell Trust’s Food Bank charity.

For details of the 2012 Franchise Business Booster and Supplier Showcase or to find a franchise supplier visit www.franchisesuppliers.co.uk.

Iain Martin - Director, The International Franchising Centre

Now I know what you’re thinking: he’s playing with words here – all franchisors sell franchises – they might talk about “awarding them” but that’s just semantics, isn’t it?   -   I don’t think so, because it reflects a mindset.

Have you got a real vision for what your network would look like, fully developed; the quality of relationship you would enjoy with your franchisees; the performance levels of the franchisees and the revenues which would flow both to them and to you?   If you have, I doubt that your mental picture includes franchisees who are struggling, who are awkward to deal with, who are negative and critical.  But the truth is that there are going to be lower performers in every network the only issue is going to be how many, and how low is the performance of the bottom quartile?  The answer to that question depends largely on you and the recruitment policy you operate in your franchise.

Whilst franchisee recruitment isn’t a science (in the sense that there’s a formula which works every time),  I think it can be described as an art.  But the art is principle-based.  I would suggest that the principles underlying successful franchisee recruitment include the following:

• Total transparency a full exchange of relevant information between candidate and franchisor
• A mindset that is looking for “best fit” “has the candidate really got what it takes to be successful with us?”
• A structured recruitment process which is designed to ensure that the information exchange takes place and the candidate “fit” can be accurately assessed
• An underlying attitude which communicates the following message to the candidate: “We’re determined to be the best in our market sector and we know that if we’re to achieve that, our franchisees must share our vision, passion and have the attributes which will enable them to be the best too; are you (Mr Prospective Franchisee) good enough to be part of what we’re building?”

I promise you, that if you do communicate in this way with your candidates, they’ll be the ones trying to show you why they’re good enough to be part of your network!

The issue of whether you’re selling or awarding a franchise has simply disappeared…

Iain Martin is a Director of the International Franchising Centre and specialises in helping international franchisors secure UK partners, and UK franchisors to develop successful franchise networks, through several brokerage businesses.

Are you are a franchisor with an annual turnover of between £100,000 and £2m with ambitions for growth?

HSBC are currently offering the opportunity for businesses to win one of four HSBC business growth grants that are on offer to entrepreneurs seeking to expand their businesses.

Two grants will be awarded to businesses using innovative ideas to grow their businesses within the UK and two further grants will be awardded to businesses that have the aspiration to develop their opportunities overseas.

For fill details and an application please visit: http://www.businessgrant.hsbc.co.uk/. Closing date for applications is 31st December 2011.