Investment: £20k-£50k
Franchise Focus
thorough business health check on Granite Transformations, to prove that the franchise model is viable and the overall business is in good financial condition, and they assist its qualified franchise applicants with the preparation of a professional business plan, projecting two years’ trading ahead. “Chris and Stuart have more than 60 years’ combined experience of dealing with lending underwriters and I’ve heard it said that their plans are the best in the business,” says Dugan. “Certainly they take an honest and realistic approach to forecasting financial performance, taking into account the individual circumstances of the applicant, and can structure a proposal that provides the bank with everything they need to say ‘yes’. Also, Granite Transformations itself has pre-approved lending facilities with all the major high street banks, which usually streamlines the process of raising finance.” Preparing the business plan is included as part of the Granite Transformations franchise fee, so there is no additional cost and, providing everything is satisfactory at this stage, the franchise candidate signs an ‘intent to proceed’ agreement and pays a deposit against the agreed franchise fee. Dugan continues to stay involved right up to the start of the two-week induction training programme, at which point the Granite Transformations comprehensive support network takes over. Now that Granite Transformations
there’s a sense of achievement from running their own business. That’s where a franchise model like that of Granite Transformations really appeals, because it has scope to be built into an operation that matches your own personal goals. It has the potential for scaling up into quite a big business with additional sales territories and the possibility of involving a spouse and older children, turning it into a real family enterprise.” Finding the right calibre of franchise owner to enable brands to achieve sustainable network growth is only part of the equation, however, and Dugan’s other role is to guide potential franchisees through the whole process of identifying the right franchise opportunity, sizing up the investment required, matching skill sets and experience to the market sector and obtaining the necessary finance. “I don’t work directly for Granite
Transformations; as an independent franchise consultant, I sit between the brand and potential investor, seeing if there could be a good fit,” he says. “I am always looking for a positive outcome from the process but sometimes the proposition doesn’t suit one party or the other. “Assuming there’s good potential fit, my
next task is to identify whether their finances will support the proposed business model. Initially, a potential franchisee might feel that a Granite Transformations franchise is outside the range of what they have to invest, but that’s often because they don’t fully appreciate the opportunities presented by bank lending. In my experience, the high street banks are very open to lending against a mature franchise business like Granite Transformations. Given home ownership and other assets, banks may lend up to 70 per cent of the total finance required, opening up the options considerably. Even if you can self-finance the whole package, it’s often better to request a loan at the outset, say for 50 per cent, and keep some of your own money back, which you can later use to see you through a sticky patch or perhaps buy another territory.”
Crucial to the success of raising bank finance is the preparation of a detailed business plan and, here, Dugan and Granite Transformations expedite the process by introducing potential franchise investors to a specialist franchising finance firm run by ex-bankers Stuart Walsh and Chris Roberts. They previously carried out a
has introduced a garden centre-based concession site franchise model, lowering the entry price for would-be investors, and developed an add-on existing retailer package, opening the doors to established kitchen and bathroom businesses, Dugan foresees accelerating market demand for Granite Transformations franchises and plenty of consultancy work for his firm. n
GRANITE TRANSFORMATIONS Dugan Aylen
WEBSITE:
www.gtfranchise.co.uk EMAIL: franchiseleads@
granitetransformations.co.uk
PHONE: 01892 509 680 CLASSIFICATION: Home improvement / retail
February 2014 |
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