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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Eight Steps To Buying a Franchise

  1. We’ve broken down the franchise buying process, as you are aware, buying a franchise means you are buying a tried/tested format, whilst we’d hope that this takes the guesswork away we must say take care, before you get dazzled by the bigger bank balances of the larger corporations you must do your own due diligence.

    In theory it is presented that you can also save time and energy by not worrying about generating publicity to raise the awareness of your new venture but as much as your customers will know what to expect from a big chain, they don’t always flock to a brand name they haven’t realised has opened.

    Having an established brand, proven market and a respected system of operation means that the battle could already half won for you before you even start your first day of trading. That is if all your facts are straight and you have looked at the business plan properly. The manner of response and quality of the information you prospective franchisor gives you can be a deciding factor in your final decision to purchase the franchise from that franchisor.

    My Passion Is To Help You Find Yours

    Richard Williams UK Franchise Broker Tel 01886 880088

    Gathering as much data on the sales potential of the market/territory you are going be operating in is critical and identifying future potential will be the backbone of the business.

  2. Use every resource available including demographic data from the Office of National Statistics, Trade Associations, Local Chamber of Commerce, Local Enterprise unit, Councils for town and borough.Look at the competitive information in annual report of brand leaders and request market information from the franchisor regarding the rationale for defining a territory.
  3. Crunch the numbers on your own and test the figures as your franchisee gross margin and the relationship to the royalties compared to net margin. You simply should walkway from a franchisor asking you to pay an 8% royalty on a gross margin percent is in 20 to 30% region. Check how long you should be in business before breaking even and what this period will cost you. Factor in extra for a safety margin.
  4. The requirements regarding any PR or advertising fund will be of interest. Is the fund fully operational?  Ask about the franchisees task in the administration and use of PR and marketing fund monies.
  5. Complete in depth due diligence on the franchisor’s financial statements with a focus on the source of revenue and any positive or negative trends. As stability is important in terms of the franchisor being able to service and support its franchisees– you must check the levels and source of capital.
  6. Interview current franchisees and ask for a list of terminated franchisees. Again verify the numbers by finding out what time frame they found when getting to reach break-even. After some coughing & spluttering they will say we are slow but its all different now… Its not! Have a prepared list of questions and you then must ask each franchisee and the franchisor the same questions. Then work out the facts for yourself.
  7. Asking the franchisor if they have ever been in or are in any sort of litigation will be of help and it might be worth checking the franchisees out with a litigation type question.
  8. Insist that you meet with the CEO or managing director in order to understand their role in the day-to-day operation of the franchise. What is their strategy for growing the franchise network and what is the longer term vision and then ask what happens at the end of franchise term? Can I carry on or do I have  any restraint of trade? Would you see yourself getting on with the directors and would you be comfortable to have them in your home socially…

 

The above are some of the points to get you started, it might also be worth considering your personal passion and how your passion is aligned with your business.

 

This is about your life and the choices you make must be your own and of course you must get some good professional advisors to support you.

You would also be sensible to seek the help of a franchise broker, just like an insurance broker or a stockbroker they tend to discover your appetite and match you to the best franchise for you and your income requirements

http://airstreamconsultants.co.uk/

Global Giants

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 

UK Franchise Companies – The Greatest Opportunity Ever

Every day, in every country around the world, there are franchise seekers looking for franchise business opportunities ideally supplied by UK franchisors’ products and services.

The demand is out there, you could be, Airstream Consultants (UK) Limited is set up so you can find the right master franchisee/franchisee and offer your team as much or as little support as they require.

Going Global

Richard Williams Director of International Master Franchise Sales

 

 

 

Welcome to the Franchisor World Blog

Here you will find exclusive international trade news, support and inspiration from franchise businesses thriving on the global stage. Franchisor World is the blog for TopFranchise.net and Airstream Consultants (UK) Limited.

It’s still early days, but already the campaign to take the best of British franchising overseas is cutting through and changing UK Franchisors behaviour for the first time.

Trading overseas is vital for ensuring the long term health of the UK economy. As such, HM Government has committed to support 100,000 additional UK businesses to sell their goods or services overseas by 2020.

In May 2016, we made a strategic decision to help mobilise the franchise business community to support these companies by finding great partners and combining together in launching Franchise Great Britain into new territories

The bull’s-eye target for this campaign was the group of Great British franchisors who were not open to the idea of exporting. Not because they didn’t believe it would be good for their business, but because they didn’t believe there was any overseas demand for what they offered.

At Airstream Consultants/TopFranchise.net we set out to turn this perception into reality and show franchisors see demand is out there.

Looking at US based franchisors you can see some great and more off the wall ideas doing very well in the UK/EU/Asia and Middle East.

We believe that British Franchisors are sitting on very valuable brands and these can be connected them to master franchisors matched for their business and we are here to inspire British Franchisors to take action.

Firstly, we attended every UKTI workshop, we developed TopFranchise.net with help from franchise guru Les Armitage and set up an online hub that housed  live franchise opportunities from around the globe.

Second, we set up a broker network in strategic locations around the world. a franchise operations and training support system was setup to allow fast growth with the needful support to drive business but without the usual eye-wateringly high costs usually associated with overseas expansion.

The prospect of franchising in overseas (new) markets can often feel daunting. There are many things to consider, such as how you will identify the potential franchisee or master franchise buyer for your product or service in the target market.

Which market first?

The overseas end user buyers and customers your franchisee encounter are not necessarily going to respond like those in the UK and how can we react as they vary in each country.

Even the legal aspects of franchising legislation comes up as companies often are unsure of the laws around franchising in new countries. And what about cultural business etiquette and those unwritten norms and taboos— How do you position your brand?

Our role is to help companies address these challenges.  Our International Franchise Advisors all have industry, sector or market experience in exporting your franchise.

Some have been in your position running an international franchise business or launched overseas market leaders on new continents.

By embarking on your franchise export journey, I would expect your company will quadruple in size, as your brand aims to continue expanding to new countries and this globalisation makes the domestic team feel they are apart of something great

To find out how we can help your franchise business expand overseas, please contact info@airstreamconsultants.co.uk or call 01886 880088

Richard Williams of Airstream Consultants (UK) limited

What Brexit Means For Your Global Franchise

The UK’s decision to leave the EU will have significant implications for franchisors and we are already working with our clients and in support of their operations whilst all the implications are understood.

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European Franchise Association

 For Now It is Business As Usual

The Franchising sector is adaptable and innovative when confronted with big challenges and these uncertainties will be planned out for the best way to capitalise on the situation over the next three months. Despite EU bureaucrats seeking an instant exit we will not see the UK doing anything overnight and it is business as usual for the near future. Albeit franchise buyers and sellers will ask what the UK looks like outside the EU. Will the EU see a domino effect with Greece, France, Holland Germany and other nations leaving via more referendums.

We will help to work out the details and legal issues to ensure business confidence is maximized during a time when Brexit could  be damaging to global franchise companies as they adapt to new market conditions and opportunities in both the EU and a more independent UK

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This image is courtesy of Rawich at FreeDigitalPhotos.net 

UK Franchisors cannot turn their backs on Europe. Global Franchisors understand we only left the EU but we are a leading economy in Europe.

For the majority of Franchisors in Britain the fact the UK is leaving the European Union – Brexit – is a major source of anxiety. Not only is the break with the EU creating uncertainty that could be bad for business, it is already damaging the UK economy and Moody’s ratings agency said Britain’s AA1 credit rating is looking negative. In fairness Standard & Poor have not at the time of writing this article made any official downgrade to the UK credit rating.

It is going to be a time when you can read a huge amount on all of the economic consequences for the UK of Brexit and we will focus in by filtering out what this means to global franchising.

Some of the news is impartial; much of it is biased and very little has been written on the consequences for the franchise industry.

Franchisor World will address this gap by systematically filtering out the news for franchisors and franchisees as Brexit makes an impact on both the UK and the rest of the Continent.

The UK has long been a favourite destination for U.S. Franchisors but Franchising has grown rapidly in Europe in recent years to overall become the biggest destination for global Franchise companies.

No need for panic as it will be business as usual whilst Great Britain negotiates is departure from the EU and we could see 0% Bank of England base bank rates to stimulate our economy.

The major parties in British politics are both the scene of a current coup, Labour has had 9 resignations from its Shadow Cabinet and whilst that rocks the left it is a divided Conservative Party with Gove/Johnson causing Prime Minister David Cameron to resign.

This is a scene of unprecedented politics but does prove democracy reigns albeit the impact on the UK and on the rest of the EU will be huge.

This is an introduction to Franchisor World as a global newsletter from Airstream Consultants (UK) Limited

This article is from research carried out by Airstream Consultants (UK) Limited Head of Partnership Development Richard Williams Let’s Talk Business