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

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

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

Cathryn Hayes - HSBC Head of Franchising

A diverse range of sectors lend themselves to successful international franchising. A common example is retail, particularly the fast-food sub-sector.

In recent years there’s been a growth in service industry franchises such as in the cleaning and maintenance sectors, as well as management consultancy, and there’s been a big increase in home care. Numerous successful home care franchises are being operated all over the world, including in the UK.

Well-known British franchises

Several established UK brands – including Marks & Spencer – have sold international franchises for years. Providing jobs for more than 75,000 people worldwide, there are currently more than 300 M&S stores in 40 territories, many of which are successful franchises. Other well-known examples include Costa Coffee, Clarks and Toni & Guy.

Some UK businesses sell franchises in the UK and beyond, while some only sell overseas. To increase their chances of success, some UK businesses set up overseas subsidiaries or joint ventures first to establish their brand and then, armed with greater local market awareness, they begin selling franchises. Importantly, the business model must translate and provide returns for both parties.

Franchise agreements

Buying a ‘master franchise’ can give rights to an entire country. Other options include a regional/area franchise, down to a single-unit agreement. Bigger geographical exclusivity comes at a price.

The franchisee usually pays the franchisor an initial sum upfront. Then they pay a monthly fee – normally a percentage of turnover. The franchisor provides training and ongoing support. Some agreements simply involve the franchisee buying products from the franchisor, rather than paying a monthly fee.

Welcome cash injection

International franchising can provide brand owners with a welcome cash injection and a regular, predictable income stream, without the risks, investment and resource commitment of establishing their own presence overseas. Franchisees are no less motivated to run the business successfully, and it is firmly in their interest to do so.

As well as enhancing a brand – providing its reputation stays intact – franchising can be a way to spread development costs across a wider set of markets. The overseas franchise must be properly resourced and operated if standards are to be maintained. Potential partners must also be carefully selected and should understand and respect the brand.

UK business models may need some tweaking, if they are to work in overseas markets. There are questions of language and culture that need to be considered, too. The cost structure in another country could be very different, which could have implications for your franchise.

Key recommendations for UK businesses considering becoming international franchises

Early on, it’s a good idea to speak to a specialist international franchise consultant affiliated to the British Franchise Association (bfa). You should also make sure your intellectual property is safeguarded, and seek tailored legal and tax advice. Agreements should be drawn up by a qualified professional – preferably an experienced franchise lawyer affiliated to the bfa.

Someone within the organisation needs to take charge of managing and developing franchising activity. This must also be properly resourced and can mean significant people, time and money.

Research is crucial, too. You must consider which franchising model is best for your business and identify territories in which your franchise is most likely to succeed – it might not work in some places. Carry out thorough due diligence on all prospective partners. Pilot your franchise before making it generally available. This enables you to iron out any minor problems before committing major resources.

• Visit the website of the bfa. See the organisation’s international page for links to international franchise organisations.
• Visit the International Franchising Association website.
• For information about overseas markets, visit the UK Trade & Investment website.
• Find out about how HSBC can support your efforts to become an international franchisor. You can email us or call 0800 234 6224.

Cathryn Hayes - HSBC Head of Franchising

We thought we’d share some tips to help franchisees present a strong business plan and help them to raise finance.

Other sources of income
It is vital for a new franchise to provide enough income for the owner to live on, in addition to servicing any borrowing they have, particularly in the early years. Many franchisees have a supportive partner behind them who often continues to earn a regular wage. This additional household income reduces the franchisee’s dependence on the profits of the business. It is therefore important that a franchisee provides a summary of all their domestic income and expenditure, demonstrating just how much money needs to be taken out of the business.

Understand the figures
We see many examples of franchisees simply presenting figures given to them by their franchisor, without really understanding what they mean. As franchisors it is essential that you encourage your prospective franchisees to take ownership of their figures, particularly the cash flow forecast. If they are unable to explain these to the lender in a convincing fashion, they could be turned down for the finance they need to get their business off the ground.

Cash flow forecast
In contrast to the above, we are sometimes presented with a cash flow forecast and little else. The bank won’t just focus solely on figures. The business plan needs to demonstrate the franchisee’s business skills and experience and that they have fully researched the local competition and understand their market etc. Whilst the cash flow forecast tells a lender what should happen, the business plan explains how it could be achieved.

It’s not just about the franchisee
It is important that Franchise Unit hold up to date information on your franchise to share with lending managers.  It would therefore be helpful if you forward your audited accounts to us on an annual basis and provide details of any management changes,  franchise cost increases, modifications to the franchise model or legal agreement. These regular updates will provide the franchise team and the lending manager with a good understanding of the franchise.

Whilst the majority of business plans we receive are perfectly suitable, we hope these few pointers will help make it easier for franchisees to obtain the finance they need.

Additional help and assistance on writing a business plan can be found at HSBC’s Knowledge Centre, an online resource to help small business owners whatever stage their business is at.

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

Mike and Catharine Chalton of Home Instead Senior Care - Gold Winners of the 2011 bfa HSBC Franchisee of the Year Awards

Mike and Catharine Chalton of Home Instead Senior Care in the Wirral were last night revealed as the 2011 bfa HSBC Franchisees of the Year, supported by Express Newspapers.

Amongst 14 exceptional finalists, the Gold Award winning pair provide a wide range of one-to-one, tailor made, services and home visits for the elderly. They were praised for their commitment to providing high quality care in an industry where some businesses have caused criticism over standards. The judges noted their passion for tackling this serious issue and spearheading an initiative which sees Home Instead Senior Care working closely with the NHS with the aim of raising healthcare standards across the country.

Also celebrating wins last night for their efforts were:

• Silver Award – Afia Sirkhot, McDonald’s (Birmingham & Dudley). Afia was praised for her dedication to training and developing high quality staff and working with the Birmingham and Dudley communities to build two hugely successful McDonald’s franchises.
• Bronze Award – Ian Cain, NBC Bird and Pest Solutions (Edinburgh). Ian was awarded in recognition of his commitment to ethical business and environmentally responsible wildlife management and for building relationships with, and retaining, a portfolio of high end customers across Scotland.

Mike and Catharine Chalton commented on their achievement: “Winning this award is fantastic recognition of the lengths our whole team has gone to to make a positive change in the community we live in. To be named as the 2011 bfa HSBC Franchisees of the Year is a great honour and a very exciting reward for everyone at Home Instead Senior Care. We are extremely proud of this achievement which also helps to raise awareness of the company and its vision to change the face of elderly care in the UK.”

Home Instead Senior Care is the fifth largest care provider in the UK. It is part of a growing worldwide organisation, Home Instead Worldwide, which currently has over 900 franchised offices worldwide, with over 100 in the UK and Ireland.

Cathryn Hayes, Head of Franchising, HSBC, commented: “It was a pleasure to witness so many enterprising businesspeople who are excelling through planning, perseverance, innovation and creativity. Mike and Catharine’s passion for providing excellent customer service came across strongly and it is great to see how it has resulted in their successful business going from strength to strength. They are a true credit to the franchising industry and an inspiration to small businesses across the UK.”

Seán Hammond, Head of Franchising, Express Newspapers, stated: “These Awards continue to reveal the business talent we host in the UK. Their success stories provide food for thought to existing and potential franchisees, and I congratulate every finalist on their enormous achievement.”

Brian Smart, Director General, British Franchise Association (bfa), said: “There were so many strong stories this year, revealing the small businesses which have truly taken advantage of the franchise model to deliver success. We are thrilled to announce the winners of the 2011 bfa HSBC Franchisee of the Year Awards and are particularly pleased to see the level of commitment the winning franchisees have placed on supporting their communities and adapting their businesses to reflect the challenges of the economic environment.”

Along with the overall Gold, Silver and Bronze Award winners, five regional winners were selected.

Regional winners:

• London and the South East
  Asad Hamir, Amar Radia and Adarsh Radia, O2 (London W1)
• Scotland
  Ian Cain, NBC Bird and Pest Control (Edinburgh)
• The Midlands
  Afia Sirkhot, McDonald’s (Birmingham and Dudley)
• The North
  Mike and Catherine Chalton, Home Instead Senior Care (Moreton, Wirral)
• The South West and Wales
  Lorraine Thompson, Driver Hire (Oxford)

For further information, visit www.thebfa.org or call the bfa on 01235 820 470

Cathryn Hayes - HSBC Head of Franchising

The 2011 bfa HSBC Franchisee of the Year Awards, supported by Express Newspapers will once again bring together the franchising industry to celebrate excellence within the sector and the commitment of those franchisees who ‘set the standard’ for best practice in the industry.

Taking place at the NEC in Birmingham on Thursday 29th September, the black tie Awards Dinner, a firmly established event in the franchising calendar, will see 5 regional winners announced from the 14 finalists. In addition, national Bronze and Silver winners will be announced with the overall Gold winner being crowned bfa HSBC Franchisee of the Year 2011.

Individual tickets for the Awards Dinner are £87 + VAT or book a table of 10 for the price of 8.

Bookings for the Awards Dinner are now well under way so make sure you book your place(s) as early as possible, if you have not already done so, by completing and returning the reservation form you will have received through the post. Alternatively, you can book  by calling 01235 820470 or by booking online through the awards area of the bfa website.

We look forward to seeing you!

Cathryn Hayes - HSBC Head of Franchising

As the National Franchise Exhibition at the NEC in Birmingham is just around the corner, we explore why our enthusiasm for the UK franchising industry is continuing to bloom.

Franchising contributes £12.4 billion to the UK economy and provides jobs for an estimated half a million people working in the franchise industry.

Four out of five franchisees feel that being part of a franchise has given them a competitive advantage in the last year, when compared with similar businesses that are not franchised. The recent bfa HSBC Franchisor of the Year Awards revealed just how much franchisors are doing to support their franchisees. All finalists displayed a wealth of expertise in what excellence means in practice.

HSBC has supported franchising for over 25 years, and our approach to providing finance has remained consistent. In 2010 we doubled our lending for franchisees compared to 2009, and we are looking to further build on this record performance.

The key thing here is risk – good ethical franchising is less risky than conventional business start ups and that’s why banks will look favourably at applications from franchisees. But are they a safer option?

Franchising covers a wide spectrum of industries and even though some have performed better than others during the downturn, the risk is diversified for the sector as a whole. The risk of failure is lessened further by the support and tried-and-tested model provided by successful franchisors. It is in your best interest that the franchisee’s business remains in good shape and you continue to receive income in the form of ongoing management service fees.

Funding is more likely to be available to quality applicants who can demonstrate they have a good understanding of their chosen franchise model, the skills needed to realise the opportunity and a firm grasp of the financials of the business.

As we begin to emerge from the recession, now is the time to start recruiting new franchisees, ready to expand your business during the long-awaited upturn. Keep your bank updated with your most recently audited accounts, any initiatives you have put in place to assist your franchisees and details about how your business is performing. Your bank will work with you to ensure your franchisees obtain the right funding package, enabling their business and yours to thrive.

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

Cathryn Hayes - HSBC Head of Franchising

It is inevitable that at some point franchisors will be faced with franchisees who wish to sell their business – particularly mature franchise systems.

There are two types of sale that the franchisee can employ: share sale or asset sale. These are very different, and it is important that both the buyer and seller understand the implications of each.

In a share sale, the buyer purchases the shares in the trading company. The ownership of the company changes, but the trading business stays exactly as it was before the sale.

In an asset sale, the trading business is transferred from the seller to the buyer. After completion of the sale, the seller will be left with a shell company (subject to any assets or liabilities that the buyer chooses not to take), the assets having been transferred to the buyer. The business is operated by the buyer through a different legal entity.

The asset sale is probably the easiest for all parties concerned as it gives the flexibility to pick and choose which assets and liabilities will transfer. However, a share sale is typically more tax-efficient for the seller.

To put this in perspective, with the right structure a share sale may incur a Capital Gains Tax liability of 18% (reduced to 10% as Entrepreneurs’ Relief is likely to be available). An asset sale could incur a tax liability of over 50%, as Corporation Tax is paid by the company on the sale price and then Capital Gains Tax or Income Tax is paid by the individual extracting the profit from the company.

However, share sales pose a greater risk to the buyer as they will inherit all liabilities, known or unknown. This can include unpaid tax, property liabilities and possible litigation by customers or staff. Therefore, buyers will need to gain a thorough understanding of exactly what they are acquiring before committing themselves, and we would recommend independent legal advice is sought.

If there are any existing finance agreements in place, with an asset sale there will be a change in legal entity and the lender’s consent would be required. This is not the case with a share sale, but ‘change of control’ provisions are becoming increasingly common, which allows the finance agreement to be terminated.

If the franchise operates from premises then there are further issues to consider. If an existing lease is to be transferred to the buyer, the landlord’s consent will be required. This consent is also required for an asset sale and Stamp Duty Land Tax will be payable, another cost which must be factored in.

If the franchisee employs staff, the type of sale will affect them in different ways. If the buyer wishes to reduce the number of staff, Transfer of Undertakings Protection of Employment (TUPE) rules will apply in an asset sale. This is not the case in a share sale as the employment contract continues as before.

Kate Legg, Commercial Associate at Higgs & Sons Solicitors specialises in franchise law and has experience of franchise re-sales. She commented, “Some franchise networks do not have any formal re-sale procedures in place and those that do usually have a process geared towards asset sales, but not share sales. This is an area that needs to be considered carefully. Different processes will work better for different networks – it is not the case of ‘one size fits all’. Having established what process fits with the network, the franchise agreement should then reflect that”.

In summary, there are pros and cons to both the asset and share sale options. Sellers would usually choose a share sale, while purchasers tend to prefer the simpler and less risky asset purchase. If any of your franchisees are thinking of buying or selling a franchise, it is essential that they take legal and accounting advice at the outset and consult with you throughout the process.

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

Cathryn Hayes - HSBC Head of Franchising

The UK economy continues to see signs of pressure with the low retail sales, soaring fuel costs and utility bills. Now is a good time for businesses to be innovative and think about how to improve efficiency and profitability. This is where the strength of franchising comes into its own – you can help keep your franchisees focused, sharing your knowledge and experience.

Customers may delay payment – do your franchisees have the financial stability to survive if this happens? Managing overheads and identifying savings seems obvious, but is it being done? How much are franchisees taking out of the business – do they need to consider their spending levels? Are they managing their banking facilities well? Going overdrawn without agreement or exceeding limits can be costly.

Looking at overheads seems obvious, but many small businesses just don’t do this, or don’t do it soon enough. You are in a position to benchmark your franchisees, and help them to consider how their business costs compare with their peer group.

If your business deals with stock holdings, help your franchisees to achieve greater efficiency. Are your own systems robust and effective? Order less stock, but more often. This may require more management by you or your staff, but means you don’t have to tie up as much cash in stock. Obtain better credit terms from suppliers. If you are unable to do this – if for example you have no track record with a particular supplier – ask for better discounts in return for prompt payment.

If equipment purchase is necessary, consider leasing instead of outright purchase. This means you can spread the repayments over a period of time, and may be able to benefit from tax allowances. Many leasing schemes also include extra benefits such as maintenance insurance, which can help avoid unexpected costs later on.

Proactively manage your customer database and re-establish contact with dormant accounts or old leads. Send out information about the business and its goods and services, and highlight any unique selling propositions (USPs) your business has.

Consider how IT is used in the business – can it be used to further cut costs and improve efficiency? What are your best franchisees doing that the others can learn from?

It is always vital to keep a close check on how much money the business is owed and whether franchisees are keeping on top of invoicing and credit control. Is the franchisee very dependent on a small number of large customers? This could lead to major problems if one of these fails.

Are your franchisees working well with their bank? These are some of the problem areas 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

Look at your own requirements as a franchisor too, and work with your bank. We deal with a wide range of franchisors, from 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, and how much are you going to need to spend to achieve that?
• Keep good financial records and forecasts. If you do, you can apply for new finance before you need to use it. 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 business health and are what banks use to assess your financial health.
• Review your marketing strategy, sales performance and the performance of sales staff on a regular basis. Keep an eye on the competition to ensure someone else doesn’t steal your customers.
• Attract the best franchisees, inspire them to achieve success and move on the underperforming ones.
• Have the right management and support team in place.

The overall message is, whatever the state of the economy, get the basics right to encourage and foster success.

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

Cathryn Hayes - HSBC Head of Franchising

Entries for the British Franchise Association (bfa) HSBC Franchisee of the Year Awards 2011 are now being accepted, so why not nominate your most enterprising franchisees? The awards, supported by Express Newspapers, highlight the outstanding efforts and achievements of the franchisees in the UK who ‘set the standard’ for the industry.

The awards, celebrating their 22nd year, offer franchisees the opportunity to showcase their inspirational stories of success. From turning pioneering business ideas into reality, developing new community initiatives, or achieving growth despite the challenges of a difficult economic climate, the Awards recognise the individuals who have demonstrated best practice in franchising.

This year the awards will include a regional winner from each of five regions: London and the South East, the South West, the Midlands, the North and Scotland. Each regional winner will receive £500, courtesy of HSBC.

Franchisors can enter up to five of their franchisees for the awards, one nomination per region. Three finalists will then be chosen from each region, with these going forward for the national awards.

The Gold Winner of the Award will receive £5,000 from HSBC, together with a commemorative trophy and the title bfa & HSBC Franchisee of the Year.

The Silver and Bronze Winners will receive £3,000 and £2,000 respectively.

The deadline for entries is 20 June 2011, and finalists will be invited for interview with the judging panel on either 27th or 28th July. Winners will be announced at a gala dinner, being held at the NEC in Birmingham on 29 September 2011, prior to the National Franchise Exhibition on 30 September and 1 October.

Further information and entry forms can be found in the Members’ Area of the bfa website.

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

Cathryn Hayes - HSBC Head of Franchising

A shortlist of 13 franchisors has been announced in the 2011 bfa HSBC Franchisor of the Year Awards, supported by Express Newspapers. The finalists were selected from entries spanning multiple sectors, business size and locations across the UK to reveal this year’s potential Award winners.

The Awards represent an opportunity for the UK’s best franchisors to gain recognition for their achievements in 2010; a year when many businesses had to work harder than ever to compete successfully in a tough economic climate. Finalists will now meet the judges face-to-face to bring to life the people, the passion and the stories behind their businesses which will inspire the next generation of franchisors and franchisees.

Franchisors shortlisted are as follows:

The winners in each of the three categories will be announced at the 22nd British Franchisor Awards gala dinner on 16 June 2011 at the Heritage Motor Centre, Warwickshire.

Cathryn Hayes - HSBC Head of Franchising

The UK economy continues to see signs of pressure with inflation rising and retail sales figures static so there are continued challenges. Now is a good time for businesses to be innovative and think about how to improve efficiency and profitability.  Many small business owners simply don’t have the time or resources to do this.  This is where the strength of franchising comes into its own – you can help keep your franchisees focused, sharing your knowledge and experience.

Looking at overheads seems obvious – but many small businesses don’t do this quickly enough. You are in a position to benchmark your franchisees, and help them to consider how their business stacks up against their peer group.

It is always vital to keep a close check on how much money the business is owed and whether franchisees are keeping on top of invoicing, chasing, credit checks etc. if they are involved in doing this themselves.   If the franchisee very dependent on a small number of large customers – this could lead to major problems if one of these fails.

Customers may delay payment – do your franchisees have the financial stability to survive if this happens?  Managing overheads and identifying savings seems obvious – is it being done?  How much are franchisees taking out of the business – do they need to consider their spending levels?

Some of the poor business practices that can cause businesses to fail are:

• Taking on financial commitments before the business can afford to pay for them.
• Doing large amounts of speculative work in the hope that a customer might then purchase what you have produced.
• Overvaluing stock, work-in-progress and fixed assets such as machinery.
• Making no provision for major expenses which you know are likely to happen.
• Failing to do any cashflow forecasting, particularly if your business is struggling to grow.
• Failing to agree the details of an order with the customer, or the payment terms, which leads to a dispute.
• Failing to implement an effective credit control system, starting with credit checking prospective customers.

Are your franchisees managing their banking facilities well – going overdrawn without agreement or exceeding limits can be costly? These are some of 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 purpose agreed

Look at your own requirements as a franchisor too – work with your bank.  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?  How do you attract the best franchisees, inspire them to achieve success and move on the underperforming ones?  Have you got the right management and support team in place?

The future of franchising isn’t entirely controlled by external events — you and your franchisees can make a big impact to ensure the sector continues to be a successful and essential part of the UK economy – marketing, service levels and knowing your customer are key.

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

Cathryn Hayes - HSBC Head of Franchising

HSBC has launched a new initiative to support growing UK businesses that are creating new jobs. Available immediately, businesses who take out an Employer Loan will benefit from a discount of up to 3% off the interest rate payable, if they have employed additional staff in the previous six months. HSBC’s Small Business Loans are available to businesses with a turnover up to £2 million that require lending of between £1,000 and £25,000, with repayment terms between 12 months and 10 years. Interest rates payable on the Small Business loan start at 7.9% AIR (Annual Interest Rate) and businesses that have recruited during the last six months will benefit from a 1% discount for each person recruited, up to a maximum 3%.

This new initiative is available to both new and existing HSBC customers and will initially be available for a three month period. To evidence new employment, a P45 or P46 dated within the last six months must be produced and noted by the bank. This cannot be for the owners of the business or immediate family but may include apprenticeships, part-time and key-time employees.

For further information and to receive a quote small businesses should contact their local small business adviser, call 0800 030 4516 or visit www.hsbc.co.uk/employerloan

Cathryn Hayes - HSBC Head of Franchising

Thanks to the British Franchise Association, banks, exhibitions, trade magazines and the internet, potential franchisees are better informed than ever before.

Growing your network quickly while only selecting new franchisees with the skills and qualities to suit your business is a difficult balance to strike.

The most successful franchisees will:

• demonstrate they fully understand that this is their business, which they are going to make successful
• have fully researched the franchise and know that it will suit their skills and lifestyle
• take ownership of their business plan
• above all, be passionate.

It’s said that you only get one chance to make a first impression, and that is certainly true in the franchisee recruitment market. Potential franchisees generally take about five seconds to decide if an advert interests them, so it’s critical that your adverts attract attention, promoting all your unique selling points clearly and simply.

A potential franchisee will want to know straight away what the business is, what it will cost, what they can expect to make from it and what support is available. You should also explain whether it is a new concept or a long-established business.

Each franchisee will be an ambassador for your business, and you are the best judge of whether they have the right qualities to be successful. Have a clear idea about the essential skills a franchisee needs and plan your interview and vetting process to test these thoroughly.

One of the common mistakes a new franchisor makes is to accept new franchisees that do not really have the skills required. Equally, be careful about letting a third party recruit franchisees on your behalf on a commission basis.

Before considering an application from a potential franchisee, the banks will also be looking for evidence that they have completed their “due diligence”.

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

Cathryn Hayes - HSBC Head of Franchising

As we say goodbye to 2010, our thoughts turn to next year and the challenges that lie ahead for the UK franchising sector.

Public sector cuts

Franchisors need to look at any existing public sector contracts they have, and the potential impact on their business and those of their franchisees if these are lost. The British Chambers of Commerce has warned that small firms supplying the public sector will be hardest hit by the Comprehensive Spending Review’s cuts, as local authority funds from central government will be reduced by almost a third.

BCC director of policy and external affairs, Adam Marshall, said that a lot of small firms are dependent on local authority contracts. “There is a high risk for businesses in public sector supply chains, which will see a number of contracts go, particularly those working with local authorities.”

However, he added there was a silver lining as some departments would outsource more work to cut costs – meaning additional income streams for franchisees. “Over the next three to six months the impact of the cuts will become clearer. Firms should keep an eye out for new opportunities,” said Adam.

Franchise owner recruitment

The other impact of the public spending cuts is that many public sector workers could lose their jobs. Are these the next generation of franchise owners? Many will have received redundancy payments and therefore have the funds to buy a franchise business – but are these the most suitable individuals to become franchise owners?

Many franchisors have commented that this pool of individuals could be looking at franchising as a last resort if they are unable to find full-time employment, raising concerns about their motivation and suitability for franchise ownership. They may also be tempted to pull out of the recruitment process if they do secure another salaried job, wasting the franchisor’s time and money.

Franchisors need to ensure their recruitment process is robust to avoid situations like this.

January VAT rise

George Osborne announced in his June Budget speech that the main rate of VAT would increase from 17.5 per cent to 20 per cent from 4 January 2011.

Franchisors will need to consider if their franchisees are to pass this price increase on to their customers, or absorb the cost themselves and the resulting affect on cashflow and profitability.

Looking to the future

Despite all this uncertainty, the UK economy enters 2011 with four consecutive quarters of growth under its belt and an overall annual growth rate which has not been bettered for over 50 years. Franchising has performed strongly, demonstrating resilience in very difficult trading conditions over the last year or so.

HSBC remains committed to supporting franchising, and looks forward to working with franchisors to overcome the challenges the New Year brings to ensure the sector remains successful.

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

Cathryn Hayes - HSBC Head of Franchising

More than 250 leaders from the worlds of business, politics and the media gathered at the Dorchester Hotel last week to celebrate the 2010 HSBC Start-Up Stars Awards.

The overall winner of this year’s HSBC Start Up Stars Award is Mazuma.
Founded by Lucy Cohen and Sophie Hughes in 2006, Mazuma offers affordable bookkeeping and accountancy services to small businesses.

Their company began life in a spare room after the 27-year-old friends spotted an opportunity to serve sole traders and micro-business owners who often struggle to find a suitable and affordable accountant.
Today Mazuma employs 19 people working from a central hub in South Wales, with another 30 based in franchised offices throughout the UK.

Head of Business Banking for HSBC, Huw Morgan, said: “Lucy and Sophie’s story is a perfect demonstration of two entrepreneurs with a great idea, who then carried it through to create an impressive brand”.

Click here to see the winners being interviewed on Sky News.

For more information about all of this year’s winners take a look at the HSBC Start Up Stars website.

This is yet another example of the strength of franchising in the UK, following on from those seen in this year’s bfa HSBC Franchisee of the Year Awards.

Cathryn Hayes - HSBC Head of Franchising

Bank finance has generated significant interest during the past two years in the wake of the financial crisis.  ‘Supporting UK Businesses’, published on 14 October by the Business Finance Taskforce in association with the British Banking Association (BBA), aims to address the concern that banks are not adequately supporting viable businesses.

Noel Quinn, Head of HSBC UK CMB said that the report, “Is a significant milestone for UK businesses and we fully support the recommendations.  Our lending position has not materially changed during the past two years and, compared to many competitors, our strong balance sheet has meant we have remained open for business throughout the financial crisis.  That said, it’s also important to recognise that we must do all we can to responsibly support businesses.  These recommendations are therefore a further positive step for all UK businesses and will help under-pin the UK’s recovery.”

The Business Finance Taskforce includes representatives from six UK banks, government and a number of trade bodies.  In July, the Taskforce agreed to review the support banks provide to small and medium sized businesses and ensure UK businesses have access to secure and sustainable sources of finance.

The report makes 17 recommendations, listed fully in the BBA summary and report, which focus on three key areas:

1. Maintaining better customer relationships
2. Ensuring better access to finance
3. Providing better information and understanding

This is obviously positive news for the UK franchising industry and HSBC fully supports the implementation of the recommendations during 2011.

Additional information about the Business Finance Taskforce can be found at: www.bba.org.uk/taskforce.

Cathryn Hayes - HSBC Head of Franchising

A new report commissioned by HSBC, called ‘Mapping the World’s Trade Connections’ shows how the world is trading today and where the opportunities may lie tomorrow.  It reveals that international trade is driving global economic recovery, with momentum picking up at a fast and sustainable rate, rising 25% in Q1 alone.

The Report indicates that UK trade is up 12% globally and 31% to emerging markets.  This is a strong sign that the UK is trading its way out of the economic downturn.  This is supported by the HSBC Trade Confidence Index out this week, which shows 92% of UK businesses surveyed during the second half of 2010 expect trade values to stay the same or increase over the next six months, with 53% seeing emerging markets as promising for trade.

The Report also reveals some new emerging market ‘stars’, which suggests that UK companies are keen to take advantage of the opportunities appearing in some of the world’s growing regions and countries.  The findings indicate that companies that export skills, knowledge and maximise the UK’s reputation for quality and creativity are the ones that will get ahead.

The report highlights the following for the UK:

Top UK trade partners (2000 to 2009)

• China – 260% increase
• United Arab Emirates - 130% increase
• India - 45% increase

Fastest export growth destinations by region (January to April 2010):

• Sub-Saharan Africa - up 64%
• Developing Asia - up 34%
• Middle East and North Africa - up 25%

Top trade sectors by growth (2000 to 2009) – pharmaceuticals, organic chemicals, petroleum oil and motor fuels.  Much of the development in these areas is due to the UK’s highly innovative manufacturing sector that supplies both components and products to these industries across the world.

Emerging sectors – printed publications (books and magazines), alcoholic beverages, precious and semi-precious stones, cosmetics, transport equipment and works of art.

Noel Quinn, Group General Manager CMB UK, explains: “We’re working with the UK’s thinking businesses to help them recognise and exploit their own strengths internationally, as we believe this is where both the UK economy and our domestic businesses have the greatest opportunity to prosper. This year our export lending is up 40% year-on-year and we’re helping a greater number of businesses begin to trade internationally.”

HSBC Commercial Banking and the experts interviewed identified five key steps that European businesses looking to internationalise must take. They are:

1. Take time completing the right research: A business’ success in a new country will depend on the level of research conducted at the outset.

2. Consider if the business is ready to trade internationally: Ask yourself when an international move can best fit into your business’ overall strategy.

3. Mitigate the risks: Mapping and therefore mitigating the risks early is key – consider the bigger picture.

4. Financing Trade: Careful planning is required to ensure that working capital facilities are in place at every stage of the trade cycle and companies should engage with their bankers at an early stage to determine the level and structure of facilities to finance their international trade.

5. Seek expert advice: The right advice will lead to the right decisions for your business.  Many organisations are experts in providing the latest information which will lead you to the development of an effective international strategy.

This of course also applies to existing franchisors who are looking to expand their franchising model internationally as well as companies who are thinking of using franchising for the first time in order to enter a new overseas market.

If international expansion is something you are considering and you would like a copy of the report please email franchiseunit@hsbc.com.

Cathryn Hayes - HSBC Head of Franchising

I had the pleasure of announcing the winners of this year’s bfa HSBC Franchisee of the Year Awards, co-sponsored by Express Newspapers, on 30 September during a black tie event held at the National Exhibition Centre, Birmingham.

Of the 16 Regional finalists  5 regional winners were announced, each receiving £500 courtesy of HSBC, who then went on to compete for the coveted title of ‘bfa HSBC Franchisee of the Year’.

Collecting the Gold Award, a cheque for £5,000 and the title of bfa HSBC Franchisee of the Year Award was Gerald Thompson who operates 2 McDonald’s outlets in Manchester and Oldham. We clearly saw that “Gerald’s key to success is the relationship with his local community, particularly among young people.  Despite being part of a global corporation, he has successfully created local restaurants for local communities”.

The Silver Award and a cheque for £3,000 went to Frank Sutherland who owns an Autosmart franchise, covering Aberdeenshire. Frank dramatically reorganised his business by delegating all non-sales duties and converting travelling time into selling time.  He has twice as many customers as the average Autosmart franchisee and runs the highest earning Autosmart territory in Scotland.

Collecting the Bronze Award and a cheque for £2,000 was Peter Morrison a Granite Transformations franchisee running an outlet in Cambridge.  This tightly-run family business revitalises kitchen and bathroom surfaces.  Peter has developed this into a multi-million pound franchise and his unique marketing strategy has been adopted by the UK wide network following his success.

The other Regional winners were:

• Guy Whittaker, Dairy Crest, Guildford
• Nick Bourne, Cash Generator, Weymouth.

Many congratulations to all of the winners and finalists!

For more information about all 16 regional finalists and photos of the event please take a look at the photo album on the HSBC Business Network site.

Cathryn Hayes - HSBC Head of Franchising

With four out of ten franchisees now being women, we look at the important role women have to play in the UK franchise market.

The latest research from the British Franchise Association indicates that four out of every ten franchised businesses are now owned by women. Compare this to just 21 per cent in 2003, it demonstrates the increasing importance of women in the UK franchise market.

In the South East, a number of franchisors, franchisees and franchise advisors, including HSBC, have come together to create the Encouraging Women into Franchising Group (EWIF). The mandate of the group is to inspire, educate, encourage and support women looking to become franchisees, women business owners looking to franchise their business or businesses and existing franchisors that are under represented by women franchisees. If you feel this is something that would benefit your franchise and are interested in finding out more, visit the website.

The franchise industry is aware of the potential of women as prospective franchise owners and tapping into this market can help overcome one of the biggest barriers to growing a successful franchise network – the recruitment of franchisees with the required qualities and skills.

Sophie Brooks, operational director at Clive’s Easylearn, knows this all too well: “Women have been invaluable in growing our network. We now have 28 franchisees, running 84 schools across the UK, nearly half of which are women. We have found that women have all of the qualities we are looking for in our franchisees and have been very successful in growing their businesses.”

So that’s the franchisor perspective, what about the franchisee?

Amanda O’Rourke runs a Molly Maid franchise in Horsham, West Sussex. After working in a corporate environment for many years, O’Rourke decided that she wanted to work for herself and launched her business in November 2007. She comments: “I chose a franchise in a rapidly growing industry, in an area where I knew there to be a huge demand for good quality domestic services. I wanted not only to meet that demand, but also to have a business to be proud of.” Now she certainly does have a business to be proud of. Since launch she has grown the business to have four teams on the road and as a result of her hard work, she was awarded the Top Sales Growth Award at this year’s Molly Maid convention.

Many women who have been running a home and raising a family have many of the attributes needed to run a business successfully – they are decisive, energetic, well organised and are used to doing at least three things at once. Plus, being their own boss means that many women can achieve the work-life-balance they have been striving for. However, many lack the confidence to set up on their own. This is where the benefits of franchising come to the fore – a good franchise eliminates this problem by providing training, a tried-and-tested format and ongoing support.

As the figures show, this is something more and more women are considering.

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

Cathryn Hayes - HSBC Head of Franchising

Following on from the launch of the bfa HSBC Franchisee of the Year Awards 2010, I am pleased to announce that 16 exceptional franchisees from across five UK regions have now been short listed:

London & the South East

• Wayne Mearns, Belvoir Lettings, Southend-on-Sea & Basildon
• Guy Whittaker, Dairy Crest, Guildford
• Peter Sullivan, McDonald’s, London

Scotland

• George Stewart, Apollo Blinds, Hamilton
• Frank Sutherland, Autosmart, Aberdeenshire
• Stephen McMurray, Signs Express, Falkirk

The Midlands

• Chris Bird, Autosmart, Stoke-on-Trent
• Peter Morrison, Granite Transformation, Cambridge
• Glyn Pashley, McDonald’s, Coventry

The North

• Pamela Schure & Colin Belton, Belvoir Lettings, West Cumbria
• Andy & Vicky Thompson, Card Connection, Gateshead
• Catharine & Mike Chalton, Home Instead Senior Care, Wirral
• Gerald Thompson, McDonald’s, Manchester & Oldham

The South West and South Wales

• Nick Bourne, Cash Generator, Weymouth
• Andy & Shelley Stewart, Dream Doors, Dorset & Taunton
• Claire Lamputt, LighterLife, Bridgend

Operating in sectors as diverse as automotive, fast food, home improvement and lettings, the finalists encapsulate the best qualities in franchising. They will now pitch to the bfa judging panel of Sir Bernard Ingham, President, bfa, Brian Smart, Director General, bfa, Cathryn Hayes, Head of Franchising, HSBC, Paul Monaghan, Director, The Franchise Development Centre, Hannah Poulton, Associate, Franchise Team, TLT Solicitors LLP

“We have seen some truly inspirational franchisees through the nominations again this year and it just goes to show that British entrepreneurialism is most definitely alive and well – despite the recent challenges brought by the economic conditions.

“As a leading bank working with franchisees across the UK, we’ve seen innovation and revolutionary business problem solving as a very positive theme. This has been reflected in the bfa HSBC Franchisee of the Year Award 2010 nominations, and the final fifteen are a real credit to the franchise industry.

“I am very much looking forward to meeting the individuals behind some of the best franchises in the UK as part of the final judging stage.”

Once the 16 finalists have presented to the bfa panel in late July, five regional winners will be chosen to compete for the coveted UK bfa HSBC Franchisee of the Year Award 2010.

All the winners will be announced at a gala awards dinner at The NEC Birmingham on 30th September.

Cathryn Hayes - HSBC Head of Franchising

Just 14% of businesses in the UK recognise that Asia could drive future opportunities for business, yet a new report commissioned by HSBC identifies that there is huge potential for companies to prosper from the new markets in the East.

Noel Quinn, Group General Manager for HSBC Commercial Banking UK, said: “The UK is no longer looking at when West meets East, but at how the East will redefine the West and the way we do business. By understanding this fundamental and fast-paced change,

British businesses can ensure they are in a position to respond swiftly and effectively; and it is the thinking business that acts now. There is still a high volume of UK firms that just perceive the East as a traditional ‘low cost’ production and labour destination, but there needs to be a shift change in attitude as Asia and the Middle East become the brightest prospects on the global landscape“.

“There is also a massive opportunity for British exporters, Asia is largely positive about British brands and the consumer market is growing rapidly, giving UK businesses a platform to increase their trade. At HSBC, we are seeing export balances up by 45% compared to this time last year, which is hugely encouraging and demonstrates where some of the real opportunities for business growth lie. We have, and will continue to help businesses with the financial tools to take advantage of the opportunities in the East through our unrivalled on the ground presence, knowledge and local expertise.”

‘Looking East: The changing face of world business’ is the first report which identifies the most influential current and future trends in ‘the East’ – and interprets these to define practical implications and opportunities for companies in Europe. It highlights that ‘thinking businesses’ in the UK can proposer by factoring Asia into their strategic thinking, actively addressing how to capitalise on its diverse consumer base, skilled workforce and advances in Research and Development, while mitigating the risks posed by the macro-economic climate.

The research also reveals that many UK companies already doing business internationally are recognising the potential; it shows they are significantly more likely to see the East as a market with an increasingly highly skilled workforce than their non-international counterparts. And international traders are twice as likely to view the East as being a hub for increasingly sophisticated innovation methods.

These opportunities also apply to franchising and we have seen a number of larger companies looking to expand into Asia using the franchising route.  One specific example is  Mama’s & Papa’s who were recently featured in HSBC’s 100 Thoughts campaign.  Their initial decision to expand abroad came from the fact that so many companies were contacting them about a franchise, many after seeing their flagship Regent Street store.

If you feel this is an area you can consider for your franchise, please email HSBC Franchise Unit at franchiseunit@hsbc.com for a free copy of the Looking East report.

Cathryn Hayes - HSBC Head of Franchising

Nominations are now open for the bfa HSBC Franchisee of the Year Awards 2010. The awards, supported by Express Newspapers, highlight the outstanding efforts, achievements and stories of leading franchisees across the country.

Now celebrating its 21st year, and with a new regional format for 2010, the awards recognise franchisees that have demonstrated the highest levels of quality and best practice. As the UK moves into recovery, the awards offer franchisees the opportunity to showcase how they have harnessed innovative ideas and initiatives to create business opportunities and overcome the challenges of the recession.

The awards for this year will include a regional winner for each of five regions.

These are: London & the South East, the South West, the Midlands, the North and Scotland. For the first time, franchisors are able to enter up to five of their franchisees for the awards, one nomination per region.

The Gold Winner of the Award will receive £5,000 from HSBC, together with a commemorative trophy and the title bfa HSBC Franchisee of the Year. The Silver and Bronze Winners will receive £3,000 and £2,000 respectively, courtesy of HSBC. The five regional winners will each receive £500, again courtesy of HSBC.

The deadline for entries is 30 June 2010 and finalists will be invited for interview with the judging panel on 15 July. Winners will be announced at a gala dinner, being held at the NEC in Birmingham, on 30 September 2010.

bfa members should have already received their entry forms in the post, but additional entry forms can be downloaded from the Awards section of www.thebfa.org.

Cathryn Hayes - HSBC Head of Franchising

I had the pleasure of announcing the winners of the 21^st bfa HSBC Franchisor of the Year Awards 2010, supported by Express Newspapers, at the award ceremony in Nottingham last week.

Presentations to the judging panel by the 15 finalists in April brought much deliberation before the winners were selected for the three award categories. We judges felt that those chosen displayed exceptional qualities at a time when British businesses have had to be more innovative than ever to compete successfully in today’s economic climate.

The winners were:

bfa HSBC Franchisor of the Year Award

• Gold – TaxAssist Accountants
• Silver – Domino’s Pizza
• Bronze – Autosmart

HSBC Franchisee Support Award

• Revive!

Express Newspapers Brand Builder

• Cook

Judging the finalists was tremendously difficult as so many franchisors have shown innovative ways in which to survive and prosper despite the economic downturn. TaxAssist clearly demonstrated unique and exciting business success and is a deserving winner of the bfa HSBC Franchisor of the Year Award. Deciding on the winners of the HSBC Franchisee Support and Express Newspapers Brand Builder awards were equally difficult with exceptional practices on display – Revive! and Cook should be justly proud of their achievements.

I am sure that all the winners will capitalise on their success and continue to build businesses with strength and conviction by helping their franchisees to adopt innovative and strategically sound tactics for growth.

To view photo’s from the event have a look at the album on our Business Network site.