21
T
OUGHER ECONOMIC times have not deterred the strongest At McDonald’s, the average number of restaurants per franchisee has
franchisees in the industry from expanding, as the bfa/NatWest risen from two to four, giving franchisees a strong local presence and huge
Franchise Survey 2009 suggests. The report revealed that more opportunities. “This is a fantastic opportunity for the right franchisee,”
franchisees own multiple units than the previous year, with almost a says Richard Forte, chief operating offi cer and senior vice president at
quarter operating more than one unit – the average is a phenomenal McDonalds UK, “and the rewards are huge.”
six each! Hotel and catering franchisees are most likely to be running So what does it take to be a successful multi-unit franchisee?
multi-unit businesses, while it is least likely in the business and ChipsAway’s franchise director and former franchisee Martin Smith says:
communications sector. “A successful multi-unit franchisee needs energy, drive, determination and
For franchisors, multi-unit franchising can provide a huge impetus tenacity,” he says. “They’re taking on a more managerial role – not just
to drive the brand forward. For franchisees, it offers a scope for managing employees, but managing managers. Multi-unit franchising is not
main feature
development that could satisfy the biggest of entrepreneurial appetites – for everybody, but those with the right drive and enthusiasm rise to the
proving that following an established system does not restrict ambitious challenge, and reap the rewards.”
franchisees, rather it embraces their creative thinking and business Chemex Sales Director Ron Hutton agrees that it’s a tough job and says
acumen. “As a franchisor, it’s vital that we increase the number of stores good multi-unit franchisees now have a more ambitious role, with more
we operate to guarantee our long-term business success,” says Andy pressure and management challenges, but, “a bigger turnover, more prestige
Hirst, head of franchise development at Domino’s Pizza. “If a franchisee and recognition, and a valuable asset to sell,” does make it worthwhile!
has proven skills operating one store, it makes sense that they apply their Franchisees benefi t from economies of scale, and running one successful
experience to further units.” franchise often makes it easier to manage the next. While some franchisors
A good franchisor helps with practicalities, such as helping franchisees to encourage prospective franchisees to take on multiple units from the start,
identify sites and secure planning permission. Andy adds: “Expanding your Martin insists that franchisees are never thrown in at the deep end: start
business in a franchised system is really like doing so with stabilisers.” small, and expand with strong back-up from the franchisor.
In Domino’s franchise network, 60 per cent of franchisees now own more The most forward-looking franchisors now recruit franchisees with the
than one store and 40 per cent own at least three. Andy says: “The quality strength to expand to multiple units, so how do they select those with the
of our national network is only as strong as our weakest franchisee, and so right skills? “Our thorough interview process ensures only the best candidates
we only allow franchisees with the highest standards to expand.” join, and expand, within our system,” says Andy.
McDONALD’S
“I work hard but I love what I do”
Nigel Dunnington
What are the main challenges?
People are always the biggest challenge, and getting the best teams. Also
NIGEL, 51, has worked for McDonald’s for the credit crunch and rising utility prices – it’s about balancing prices
29 years, becoming head of worldwide and margins.
operations in Chicago and then returning to
buy fi ve restaurants in the Preston area. How does it differ from owning just one franchise?
Going from zero to fi ve was hard work, but putting the systems in place
Why did you buy fi ve restaurants meant that adding the next two was easy. My advice to others is that you
at once? need to be prepared to work hard. Think through your vision and work-
I’d spent a lifetime working with the brand life balance – and go for it!
and had confi dence in it, and the company had confi dence in me.
What is your greatest achievement?
What are the advantages? People development – it’s very rewarding to see someone start out as an
Spreading the risk and, potentially, greater rewards fi nancially and hourly paid crew member and then rise through the ranks to become a
in business growth. Also, being able to set up systems, including a manager within my business. Also growing sales by almost £1 million was
maintenance man and specialist recruiter. There aren’t any disadvantages a huge achievement. I am now planning to double the size of my group in
– I work hard but I love what I do. I’m also able to spend more time the next fi ve years.
with my family.
www.businessfranchise.com November 2009
BF020-22_SpecialFture_Nov09.indd 2 14/10/2009 16:32
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 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132