Obligations of a franchisee

 The Relationship Structure defines the elements that will make up the detailed terms of the various contracts.

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Are You a U.S. Franchisor Going Global?

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The team at Airstream Consultants seeks to enable franchisine entrepreneurs from all over the world to globalise their business from a UK strategic hub.

Airstream does this by harnessing the support, master franchisees , broker networks and experience of its team of internationally successful franchise entrepreneurs.

We are known as franchise dealmakers, we identify emerging franchise brands and accelerate the world’s franchised businesses.

Our team’s impressive international networks and track record in building successful international businesses, enables the team to identify and work with these high growth franchise businesses and then help them accelerate from a UK strategic HQ.

For more information about the team at Airstream Consultants and to see if you have a company that matches its eligibility criteria, please contact: info@airstreamconsultants.co.uk  or call +44 1886 880088 or visit airstreamconsultants.co.uk 

The Economic implications of Brexit on Franchising are HUGE

FRANCHISORS should Panic! $2 trillion off world markets – as it happened. The economic implications of Brexit on Franchising will be felt by companies on a global basis

Franchising will see change in the UK unless the wheels of EU Brexit are set in motion quickly.

Image courtesy of Rawich at FreeDigitalPhotos.net

BREXIT and Franchising in the EU

Image courtesy of Rawich at FreeDigitalPhoto.net

 

 

It would be beneficial to all if negotiations for trade with Europe is set in place and it will help all nations if the UK is offered a deal without huge constraints.

If nothing is done, times will get tough and it could then be expected that voters will be remorseful to the point of another referendum being demanded.

Our country has a population who voted in favour of recession, not directly but by leaving the EU it was always forecast and it is starting to look as though we are rapidly heading into tough times.

This has been established as a forum of comment on the impact of Brexit and Franchising business.

The Franchising banks are currently not planning change to lending criteria within the franchising sector but they do soon change their minds and any franchise buyer on the cusp of buying would be advised to get on with an application whilst the banks are funding new businesses.

We want to be clear that for franchising and Europe, it is very much ‘business as UNUSUAL’. We will continue to work closely to monitor the situation and advise global franchisors on Franchising across Europe.

The fact is that as bank shares have been wiped over the last three days, there will not be money to invest in new franchise businesses and even huge infrastructure projects are being placed on a back burner.

Just look at the news, even the NHS was £350m a week better off according to the leave campaigners until Mr Nigel Farage admitted it was sales speak and not the true picture.

Another aspect was the assumption that a free trade deal could be struck, with UK borders closed and we could have business as usual with immigration under control.

Today– Brexit ministers are faced with a slight offer of trade with the EU based on free movement between countries and as final as we are about our border it comes at a huge price.

The price of closed borders with restricted trade is  a massive downdraft in the financial markets and  £3 trillion just got wiped off the global markets in our first 24 hours.

Richard Branson has commented “We lost more money in British shares than we paid into the European Union since the European Union started in one day. It’s been a bloodbath”.

“Young people, overwhelmingly, are telling me up until four days ago they could live and work in 28 countries – suddenly they’re restricted to one country. Britain’s going to be broken up into smaller units.”

Frankly any Franchisor seeking a foothold on the Continent would be advised to go for it now and make the most of our single market.

For globally minded franchisors Airstream Consultants (UK) Limited are offering initial free advice and a service that could take companies into the EU swiftly.

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Gil Ostrander

Gil Ostrander has more than 35 years of experience in real estate sales, franchise development, sales management and training in Canada, America and Europe. From 1995 to 2001 he was involved in the European expansion of the RE/MAX® franchise real estate system helping to establish the first 750 offices in Europe.

This company are backed by veterans who have opened businesses in 20 countries and created thousands of outlets for UK and US giants.

Richard Williams of Airstream Consultants (UK) limited

Richard Williams

As a business developer it has been a pleasure to work with a handful of extraordinary people many of whom have been involved with me for around twenty years sharing a vision for a a different way forward.

We help with franchise development plans, our role is market data, positioning, you need to be within a growing segment, have a pilot with solid financial qualifiers and have an offering suited to that marketplace. I only work with management teams who have BIG aspirations and who truly care about the welfare of the franchisee.

Our focus is to work with management teams who say – we have a BIG vision and business model we want to share with the world.

Our approach has seen US world leading brands utilize our support to open several continents, many countries and appoint thousands of agents.

We’ve recruited franchisees/agents, trained, managed, found country managers for many U.S. market leaders

Do get in contact +44 1886 880088

By Richard Williams

About me and listen to me on the radio

info@airstreamconsultants.co.uk

Head of Partnership Development
GLOBAL BUSINESS  CONSULTANT SPECIALISING IN FRANCHISING FOR EUROPE, MIDDLE EAST AND ASIA
 
Direct dial:

+44 (0)

1886 880088

Mobile:  +44 (0)   7711 882588

richard@airstreamconsultants.co.uk

Providing  Your  New  Frontier With Coverage  Across  The  European Union, Middle East And Asia

Twitter@FranchisorWorld

LinkedIn

 

  Airstream Consultants (UK) Limited

  

How to Change The World! Franchise on a Global Basis Without Running in Circles!

The temptation to race around from airport to airport as scattered enquiries come in for your successful franchise is so tempting and frankly you will probably need to do it in order to believe out findings.

As global business consultants we suggest you find a consultant to work with you and your task is finding a consultant who understands the key principles of successfully marketing and selling your franchise.

Usually you have an exploratory meeting decide on overseas you will target, then you have a non-binding letter of intent and then this indicates you are serious enough for your consultant to be comfortable on the research required for the production of a sales and marketing plan for entering your new frontiers.

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Planning a marketing strategy and budget dictates the speed of franchise growth

The factors that will set your speed off growth will be your marketing budget & capacity, the crucial step is identifying market trends and how these are working in your target market.

The spread of several countries can certainly add stability for a franchisor whose focus has just been one country.

After data is collected you can settle down to working with your global franchise consultant on franchise market mapping & prioritisation.

Pricing will most certainly be different on a national, regional and global pricing basis.

Building a sales funnel with advertising; Public & Press relations; sales promotions & using your agent to build a sales network of franchise brokers is a great way to move forward.

Image courtesy of Rawich at FreeDigitalPhotos.net

Image courtesy of Rawich at FreeDigitalPhoto.net

At this stage you will seek help with translations, cultural sensitivity and taste in marketing materials/collateral. It might be that this is done in two stages, the first is a general overview and you might support a master licensees to really get the true culture of your business before they arrange translations.

The look & feel of your business might need consideration based on different market requirements. A good consultant can look at the local market, source the initial translations & certifications and even get a plan ready of direct marketing, digital marketing, exhibitions and if you have a larger budget you can enlist your own sales teams, appoint agents and set up an overseas operations centre for your company.

It could be that you would like one consultant to act as your coordinator and arrange the entire operation of franchise sales and support to be set in place.

We can help if you seek a consultant then do get in touch by contacting info@aistreamconsultants.co.uk

 

Best regards

Richard

richard@airstreamconsultants.co.uk

 

What is a Franchise?

In my opinion the answer could be really short, it could be said that a franchisor must have a profitable concept that is worthy of being firstly capable of duplication and secondly a teachable business transferable to investors as a master franchise as well as independent owner operating franchisees who are entrepreneurs remotely from a franchisor.

Subway Franchise

Franchise brands entering EU Markets Study Legislation

Image courtesy of Mister GC at FreeDigitalPhotos.net

This simplistic approach is quite enough to get you into franchising and frankly you would be well advised to pay heed to the EU Franchising legislation.

Of course you are only interested in EU franchise legislation if EU countries are a target market for you to either expand your franchise into or if you are an investor seeking to buy a brand.

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European Code of Ethics for Franchising.

Image courtesy of Rawich at FreeDigitalPhotos.net

 

The EU Franchise Code:

“Franchising is a system of marketing goods and/or services and/or technology, which is based upon a close and ongoing collaboration between legally and financially separate and independent undertakings, the Franchisor and its individual Franchisees, whereby the Franchisor grants its individual Franchisee the right, and imposes the obligation, to conduct a business in accordance with the Franchisor’s concept.

The right entitles and compels the individual Franchisee, in exchange for a direct or indirect financial consideration, to use the Franchisor’s trade name, and/or trade mark and /or service mark, know-how, business and technical methods, procedural system, and other industrial and /or intellectual property rights, supported by continuing provision of commercial and technical assistance, within the framework and for the term of a written franchise agreement, concluded between parties for this purpose.

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Image courtesy of Stuart Miles at FreeDigitalPhotos.net

KNOW-HOW – the description below is adapted for franchising from the definition in:
COMMISSION REGULATION (EC) No 2790/1999 of 22 December 1999 on the application of Article 81(3) of the Treaty to categories of vertical agreements and concerted practices*
*replaced in 2010 by the COMMISSION REGULATION (EU) No 330/2010 of 20 April 2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices which is accompanied by its Guidelines http://ec.europa.eu/competition/antitrust/legislation/vertical.html

Learn more:  at EFF Website or have a free consultation with Richard Williams +441886 880088

 

Note: EC Regulations 330/2010 and 2790/1999 describe intellectual property rights’ (IPRs) as including industrial property rights, KNOW HOW, copyright and neighboring rights.

“Know-how” means a body of non-patented practical information, resulting from experience and testing by the Franchisor, which is secret, substantial and identified;

-“secret” means that the know-how, as a body or in the precise configuration and assembly of its components, is not generally known or easily accessible;

EFF interpretation: ‘secret’ must not be understood in a narrow sense whereby each individual component of the know-how should be totally unknown or unobtainable outside the Franchisor’s business;

-“substantial” means that the know-how includes information which is indispensable to the franchisee for the use, sale or resale of the contract goods or services;

EFF interpretation: in particular for the presentation of goods for sale, the processing of goods in connection with the provision of services, methods of dealing with customers, and administration and financial management; the know-how is indispensable for the Franchisee because it constitutes the transfer of a tested and proven business system, devised to improve the competitive position of the Franchisee, in particular by improving the Franchisee’s performance or helping it to enter a new market .

-“identified” means that the know-how must be described in a sufficiently comprehensive manner so as to make it possible to verify that it fulfils the criteria of secrecy and substantiality ;

EFF interpretation: the description of the know-how can be set out either in the franchise agreement, in a separate document or recorded in any other appropriate form.

• In a lot of franchise literature, particular in English, the business system described above is known as “business-format franchising”. Other languages use the terms “formula” or “system” in reference to format.

Source of the following description: Martin Mendelsohn, “Franchising Law”, Kluwer, 2004

“Business format franchising” is a type of commercial relationship based on a contractual agreement between two independent business parties, the franchisor (the seller of the business proposition) and the franchisee (the buyer of the business proposition), in which the franchisor grants the franchisee, for the term of the contract, the right to buy and operate the franchisor’s branded and formatted business system for a fee and according to the prescribed rules and procedures developed for the system by the franchisor.

The franchisor’s “business format franchise” necessarily comprises the following 5 essential elements:
1. A brand name (registered as a brand name and/or a trademark, etc.) which serves as the umbrella sign for the network, and a rallying sign for the consumer and public,
2. a licence to the use the brand, granted to the franchisee by the franchisor,
3. a business system – a business concept formatted into a duplicable value “package” founded on the franchisor’s tested Know How and his continued assistance during the term of the agreement,
4. payment by the franchisee of a financial consideration, either in a direct form, such as an entrance fee and/or a continuing fee (“royalty”), and/or an indirect form such as a mark-up on supplied goods,
5. the investment in, and ownership of, the assets of the franchised business by the franchisee. See more at European Franchise Federation 

Are you looking to franchise into Europe?

Get in touch with an Airstream Consultant