get serious
Franchising: compare the market
Thinking about franchising? In this economic climate setting up – or expanding your business – can be a daunting proposition, but becoming a franchise could hold the key to long-term success. With the Sapphires, awards for franchising intelligence, just around the corner, Salon Business brings you a cut out and keep guide to just some of the big guns out there. Kara Dolman
HARINGTONS, DAVID LAMBERT, BUSINESS DEVELOPMENT DIRECTOR
How many franchises does your company have? David: We have four franchises and a further eight salons.
On average, how many franchises do you open per annum and at what rate are your numbers growing by? David: We aim to open at least one a year, hopefully two or three, but for us it is of the utmost importance to support the salons we already have, so we want to grow slowly.
How much does the initial set up cost the franchisee and do you help them secure a loan and liaise with the bank on their behalf? David: The initial set up cost – depending on a variety of factors, such as size – is between £100,000 and £150,000 and we ask that the franchisee put up about 30 percent themselves. But to help them do that we liaise with the bank on their behalf and help secure a loan, which is interest free over five years.
Do you also liaise with estate agents on the franchisee’s behalf, to ensure they get a prime location and property? David: Yes, once a property is found we negotiate with the landlord and provide a covenant lease for the franchisee.
What setup and ongoing business support do you give – HR, payroll, IT, PR/advertising, education/training? David: We give everything; a book- keeping and accounts service including
Contact: 01628 488340
haringtons.com 101
on-going cash flow forecasts produced weekly, and a three year business plan. We give a launch marketing campaign, an ongoing strategy and in-house maintenance team and one- to-one advice from directors at regular meetings. We also have a dedicated HR department and PR experts.
What area of the country are your franchisees based? Is there a particular part of the UK you want to expand to? David: We are based in central London, Thames Valley and the South Coast and our aim is to stay southern-based.
Given our current economic climate, why should people franchise now? David: They will have access to proven business systems and support, assistance in start-up and finance, the benefit of terms unachievable for a new start-up business, the strength of a bigger, recognised brand and access to marketing and promotional imagery that is expensive if you are a new business.
Why should prospective franchisees go with you? What’s your USP? David: We have run an established and successful hairdressing business for 25 years. We are commercial, accessible, affordable and easy to deal with. Our key aim is to give our franchisees expert service at all levels, so they can run a successful business, offering their clients the highest possible service.
David Lambert
✂
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 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170