The Franchise Business Model Strategy & Development in Export Markets. The UK Model. Suzie McCafferty Managing Director

Transcription

1 The Franchise Business Model Strategy & Development in Export Markets. The UK Model Suzie McCafferty Managing Director

2 British Franchise Association (BFA) accredited franchise consultancy firm Around 16 years of international franchising & franchising experience Successfully developed own international franchise networks (retail & professional services) building multi million companies through franchising & licensing Chairperson for British Franchise Association s Scottish Franchise Forum 2016, 2015, 2010 & 2009 BFA s Franchisor & Franchisee of the Year judge 2015 & 2014 Official sponsors of Scottish Franchise Week & Northern Franchise Breakfast with the British

3 Together, we make your team unstoppable

4 Our specialty sectors include: Retail Food Professional & Financial Services Property Children s activities Beauty Apparel Sports & leisure IT Home services and improvement Printing E-commerce Our clients include a wide range of sectors & sizes of companies around the globe from multi-national & public companies to smaller independent businesses.

5 What Kind of Businesses Can Be Franchised?

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8 My Journey into Franchising Started Here...

9 Franchising Took My Business Here...

10 The Benefits of Franchise Expansion in the UK

11 We love franchising in the UK!

12 The Scale of Opportunity 15.1bn Annual Turnover 901 Franchisors 44,200 Franchisee Outlets 621,000 Employees 97% of Units Profitable *NatWest/ bfa Franchise Survey 2016

13 Abundance of Experienced Franchise Brands Home Grown Brands International Brands

14 NO franchise legislation/law NO disclosure legislation/law

15 Experienced network of suppliers to franchise UK industry Banks extremely supportive of franchising Platform for development into new international markets

16 Why International Franchising In The UK? Increased brand awareness/market share Speed of access to market Less investment than company owned expansion Controlled business growth (systems & procedures) Overcome local language/legislation/employment/culture barriers Partners with country knowledge & contacts

17 UK Franchising Growth Models

18 International Franchising Growth Models Partnerships Regional Developers Direct Franchisees Master Franchisees

19 What Is Franchising?

20 International Growth Options Company owned operations The traditional method of franchising, known as business format franchising Agents Distributors a company (the Franchisor) grants a licence to others (the Franchisee) to sell its product or service under the Franchisor s brand, in line with its proven business model, systems and procedures and often within a specified and exclusive territory. Licensing Business Format Franchising

21 International Growth Options Company owned operations Agents The Franchisor will typically provide on-going support to its Franchisees in terms of training, operating procedures and manuals, group advertising and marketing, the provision of operating and accounting software and, in some cases, accounting services and business mentoring. Distributors Licensing The Franchisee usually pays a one time Franchise License Fee plus a Monthly Management Fee and Monthly Marketing Levy, Business Format Franchising

22 Top Tips For Franchising Your Business

23 Not as easy as let s franchise my business!

24 Do you have a proven & profitable business?

25 Do you operate in a sector with longevity?

26 Have you protected your brand?

27 So What Factor?

28 Do the figures stack up?

29 How can you remove the pain elements?

30 Do you want to become a franchising company?

31 What Else Do You Need? Franchise Fee/Monthly Management Fee Structure Franchise Agreement & documentation Operations Manual Franchisee Profile Territory Mapping Start up package & training Franchise website & prospectus On-going business support & brand development

32 What Does an A Star Franchisee Look Like?

33 Company or individual Owner of another franchise brand Proven track record of business success Financial resource to invest & develop brand Local knowledge & contacts Ability to develop infrastructure & teams Time to develop brand

34 Where To Locate Your Business

35 GET IT RIGHT FIRST TIME! Pilot Location Your Territory Feasibility Study Should Consider Demand for product service Competition Pricing Supply chain

36 Core territory demographics Local knowledge Availability of properties Rent/rates Recruitment of staff Visibility v budget Future training location?

37 Business Challenges of Franchising

38 Initial outlay - to make your business franchise friendly Market identification Recruiting the right partners Brand protection & maintaining brand standards Securing sufficient investment to fund continued growth & support network

39 BRINGING YOUR BUSINESS & FRANCHISING TOGETHER Bringing Franchising & Your Business Together THANK YOU Suzie McCafferty, Managing Director +44 (0) (0)