exclusiveinterview
local economies. It is unlikely that
There are fewer redundancy
we, as franchisors, are going to be
packages around this time,
spending a lot of money advertising
is that a stumbling block?
Nigel
in a regeneration zone. It’s also
Should franchise fees be
Revealed...
unlikely that we’re going to get people negotiable?
enquiring from that area because they It is a stumbling block, there’s no
Age
haven’t got the cash. However, what
50
doubt that a lack of fi nance is a
is certainly true is that there will be problem. On the other hand, we
Birthplace
people in those areas who are more did suffer in the previous recession
Singapore
than capable of successfully running a when people were coming out with
franchised business. lump sums and just buying a job. If Education
My plan is this: the franchisor should they’re not committed to working the Diploma in business studies
give up the signing on fee. They should
franchise, you end up with a long-
then go to the bank and get the bank to
term problem.
First job
support 70 per cent of the proposition,
I don’t think you should re-negotiate
I sold clothing in a shopping
as they would do normally.
fees. I think you should look at your
mall in Singapore, there were
Get a regional development authority
package and see whether you think
three levels of pricing – pricing
agency to sponsor the ballot and get
what you’re promoting is fair and
for the locals, pricing for the
western foreigner and a price
the franchisee to put something in – it
reasonable and value for money. And if
for the Japanese.
might be £500, it might be £5,000. This
it is, why are you cutting the fee?
working capital is used on a pay-as-you-
Hobbies
play basis. As you follow the system
How do you motivate
Horseracing is my passion. I
you get part of the working capital to
franchisees?
love to travel to the Far East,
support you. As you use more and more
I think the job of a managing director
South Africa, America and
of the working capital and as you grow
of a franchise is to spend time with
Spain – these are my favourites
the business, you then start taking over
franchisees. I spend probably two
places. I play the piano. I like
the whole business. You won’t actually
days a week with my franchises.
good red wine and I smoke
Either doing business planning, having
own the business until you’ve gone
Cuban cigars.
meetings with them or even dinner.
through the working capital, which
I think good business is about a Secrets to success
could be 12 or 24 months.
relationship. Hard work and integrity – and
Ultimately, you’re encouraging local
The relationship between franchisor and having fun. I’m very un-PC.
people to have their own business. You
franchisee is the same as that between Someone said to me that I have
get local people to employ local people.
a husband and a wife, it’s not manager
no tolerance, so I thanked him.
Local people pay local taxes. You start
and subordinate, it’s not supplier and
regenerating the area. It seems daft
customer. It’s two equals bringing
Work-life balance
that the government doesn’t try and
different skills to the same party.
I work and that’s my life.
do it. oW rkaholic sounds so negative,
What are your plans for
but I love work and fortunately
How is the recession
the future?
my wife understands. I’ve never
affecting the industry?
I’m writing a book called ‘Surviving the
had a problem taking holidays,
I think anytime you go through a
Recession’. I’ll be re-launching Popstar
but I work on holiday. You’re
recession, it’s a bit like putting cleaning Parties next year, and we’ll look at
there having a glass of wine,
fl uid on the fl oor. Like everything else, other propositions as and when they
perhaps a cigar, in the sun – it’s
not really working.
good businesses will do well in any come up.
marketplace. The important thing is
that good businesses need to continue You don’t really strike me
to market their business so customers
as someone who’s looking
recognise they’re still around.
for early retirement?
I think there’s been a radical shake-
No, it would kill me. I can’t sit at
up where we will see some of the
home. I can’t retire. I might move my
peripheral franchises go. I think the
offi ce to Spain for a year and maybe
core of the franchise community will
work from there for one week every
get stronger and will be more robust.
two or three months.

Franchisor News | 15
FN_pg13-15_LEAD-INTER_WIN09.indd 3 21/09/2009 19:12
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48