fRanchising
links with a finance company, in practice brand, which with 250 branches is “by far
the time and effort required are the biggest single brand in the UK”.
considerable – and many agents don’t have That may be particularly important in
the required expertise in their business. current economic conditions according to
Another advantage which is often Mike Goddard. He says, “the public feels
overlooked is that of the franchise network. safer with a known brand, they’re very
It can be a lonely job running a small sticky to the brand,” while they worry that
business – franchise owners, on the other small local businesses may go under.
hand, benefit from links not only with the
We give them the
franchisor, but with other franchisees in Is there a lImIt to what can be
the network. Sandra Filshill says, “I’m like a achIeved wIth franchIsIng?
biggest and best
consultant to those business owners, and If a single franchise is not enough, most
they have an opportunity to network with franchises allow their franchisees to take
advantage of all – we
other business owners, as well as with the on multiple branches. Philip Dobson says
give them our brand.’
sales director, who will share his experience “One of the longest standing franchisees at
with them.” They can learn from what Countrywide now has twelve branches,
phIlIp dobson, md countrywIde franchIsIng
works in the company owned offices, as and we’ve got quite a lot with three or four.”
well as in the franchises – and she says, At Your Move there are several with three
“Quite often the network will pick up an or more branches, though Sandra Filshill instance, has a pool of buyers ready to take
idea from the franchisees.” warns that, “It only works if the person is over existing franchises and takes a small
The key advantage for many franchisees very hands on.” percentage fee for arranging the sale, so the
is, as Philip Dobson says, “the biggest and It may not be cheap to start a franchise, franchisee retains most of the proceeds.
best of all – we give them our brand.” but the value that can be built up is Other franchisors might be less helpful to
Countrywide franchisees benefit from considerable. Mike Goddard asserts that franchisees wishing to exit.
years of investment in the Bairstow Eves “Franchise owners tend to grow faster and Philip Dobson says a mature agency for
bigger than if they were on their own”, as a Countrywide is expected to make £100,000
result of the assistance they receive from a year, “though that’s in normal
Winkworth innovation
their network. Mature franchises in the circumstances – currently things are a bit
Belvoir network are turning over £500,000 more difficult”. He would expect a business
Winkworth take the health of their a year with a profit margin of between 30 to sell for three to five times their normal
franchisees very seriously – as well as and 35 per cent. profit, “which gives a value of half a million
being eco friendly. They are ditching their Mike Goddard says this kind of business or so for one of our branches in normal
cars in favour of Gocycle – the world’s is usually valued at two to two and a half market conditions.”
lightest production electric bicycle. With times profit, so that would indicate a value So will former estate agents who want to
56 offices and over 225 agents in London in excess of half a million – an excellent try their luck be welcome? Sandra Filshill
alone, Winkworth is trialing a fleet of return on an investment of around says Your Move would welcome
20 Gocycles to evaluate a more time and £100,000, over five to ten years. experienced agents – “if they have the skill-
cost-efficient method for their agents to But Goddard points out that intending set, we can provide the support.” On the
conduct viewings of properties and to franchisees should ask their franchisors other hand Mike Goddard says he’s
help reduce their carbon footprint. about the sales process. Belvoir, for concerned that franchisees knuckle down
and follow Belvoir’s operating processes –
he finds that former agents often want to
do things their way, which makes life
difficult for everyone.
What is certain is that franchisees have
to want to run a business. They are moving
from being employed, to being employers
– and that involves a change of mindset;
working on the business and not in it. Mike
Goddard says, “You are not buying a job –
definitely not. You are buying a business
and the chance to build your business.”
www.winkworth.com
www.bairstowevesfranchising.co.uk
www.your-move.co.uk/franchising
www.BairstowEvesFranchising.co.uk
www.huntersfranchising.co.uk
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38 octoBER 2009 PROPERTYdrum
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