Franchising's fresh appeal for people in Sussex (From The Argus)

Franchising's fresh appeal for people in Sussex

11:03am Tuesday 19th May 2009

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With more people being made redundant every day and job vacancies reducing at a similar rate, franchising has never been more appealing.

On the eve of an exhibition showcasing the latest franchise opportunities available in Sussex, SAM THOMSON found out more about the advantages of owning and operating a franchised business.

Starting a franchise is a lot like learning to ride a bike with training wheels attached.

There’s no restriction on how far or fast you can go, but the support is always there to avoid any nasty accidents.

With so many workers either facing redundancy or living in fear of the possibility, it’s no surprise that the idea of franchising is so popular these days.

There are 1,250 franchise brands in the UK and you don’t need to have experience in a related field to take one of them on.

Roy Seaman, of Franchise Development Services, one of the foremost experts in franchise in the UK, said: “When you buy into a franchise, you are becoming part of a family where the franchisor and franchise owners become one under the banner of the brand.

“By choosing to own and operate a franchised business you will be starting a new life as your own boss – but not on your own.

“You will have the benefit of a franchisor, which will provide mentoring advice and guidance in all aspects operating the business. In other words, they will not only become a valuable mentor, but your business partner.

“The training provided by the franchisor should be sufficient to comprehensively prepare a layman in all areas of owning, operating and succeeding with the business.”

Although some franchises cost hundreds of thousands of pounds, Mr Seaman said others are available for as little as £10,000.

For anyone struggling to meet the cost they can get help from banks such as NatWest, whose senior business manager in Brighton, Trevor Parsons, has helped many businesses set up in the city.

He said: “With concerns around the economy and a vast selection of franchises to choose from it is paramount that a potential franchisee takes their time making their decision.

“A decision to purchase a franchise is not to be rushed into because there is a lot of research to be undertaken, questions to be asked and professionals to consult.”

Coming up with a robust business plan is essential, Mr Parsons added.

He said: “The plan should include details about the franchise, the costs, the sector it operates in, their local, regional and national competitors, your CV, your assets and liabilities and projected financial information.

“The financial information, particularly the forecasts, will help you to assess the performance of the franchise in the early months.”

Franchising is also a great way to grow an existing business, according to Stuart Anderson, editor of The Franchise Magazine.

But it is not an option for everyone.

Mr Anderson said: “Franchising is not suited to low margin businesses – there must be sufficient margin to sustain continued business growth and development, while also enabling both the franchisor and the franchisee to enjoy a reasonable return.

“The franchisor must receive a profit margin sufficient to provide good back-up and support, and maintain a healthy research and development programme.

“The franchisee must have sufficient margin to build a rewarding business ... replicating the proven system.

“It is important any mark-up on product supply or management service fee provides a win-win situation that enables the franchisee and the franchisor to succeed.”

Mr Seaman and Mr Anderson will be at the Sussex Franchise and Business Show at Brighton Racecourse on May 21.

Organised by Nelson Business Events, the show will feature dozens of brands looking for franchisees, help and advice for potential franchise owners and information about how to franchise your own business.

For more information, visit www.nelsonbusinessevents.co.uk.

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