get serious HOB SALONS, PAUL SIMBLER, DIRECTOR
How many franchises does your company have? Paul: We have 10.
On average, how many franchises do you open per annum and at what rate are your numbers growing by? Paul: We are opening three to four franchises a year at the moment, which is a great growth.
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? Paul: The franchisee puts up 25 percent of the initial cost of £130,000 to £140,000 and the rest is funded by Wella, our
RUSH, ANDREW PHOULI, CHAIRMAN
How many franchises does your company have? Andrew: We have 32 franchise salons and 20 company-owned.
On average, how many franchises do you open per annum and at what rate are your numbers growing by? Andrew: In 2009 we opened 16 franchise salons and for 2010 we are on target to open 10 salons.
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? Andrew: We look for a minimum of £50,000 from the franchisee, depending on location. Our Franchise Director creates a bespoke business plan to raise the rest of the finance and we arrange a competitive rate of interest on the bank loan. We also attend the bank meeting and explain the forecasts breakdown, along with helping you open a new bank account, etc.
Do you also liaise with estate agents on the franchisee’s behalf, to ensure they get a prime location and property? Andrew: Yes. We have a retained property agent who knows the size, type, and rental of property that we require. We personally visit the location and approve it as a Rush salon.
What setup and ongoing business support do you give – HR, payroll, IT, PR/advertising, education/training?
product partner. We help the franchisee secure – if needed – a loan and as well as guaranteeing half of that we also secure a rate of 1.5 percent on it. There are also government finance schemes that we can look into.
Do you also liaise with estate agents on the franchisee’s behalf, to ensure they get a prime location and property? Paul: I always source both the location and property with our estate agent. The first thing we work out is where they want to be and then we look for the best property and a suitable landlord. If we can buy the property we will but if not we take the head lease and then the franchisee takes the sub lease. We mirror the cost of rent, to ensure the franchisee doesn’t pay over the odds, and as soon as someone joins us we make sure they receive all the same discounts – from stock to fitting – that we as a group receive. It’s about ensuring the best possible start.
What setup and ongoing business support do you give – HR, payroll, IT, PR/advertising, education/training? Paul: We give them everything, ongoing. We want our franchisee to concentrate on creating a good business – we don’t want them worrying about that whole side of things, so we look after everything from payroll to even ordering the
Contact: 01923 854100
hobsalons.com
stock and configuring their salon figures via Shortcuts.
What area of the country are your franchisees based? Is there a particular part of the UK you want to expand to? Paul: North west London, Middlesex and Hertfordshire and more recently we opened a franchise in Leeds. Leeds was a toe in the water for us and we are very interested in continuing to branch out in the north, including cities like Manchester and Liverpool. If you are interested in opening up a franchise in those areas get in touch!
Given our current economic climate, why should people franchise now? Paul: I think it’s important when you are starting up a business in this climate to have a solid base of security. When someone opens up a franchise with us they benefit from not having to make the same mistakes we made years ago. We give them a clear pattern for success and reduce all the risks which usually go hand-in-hand with setting up your own shop.
Why should prospective franchisees go with you? What’s your USP? Paul: Our USP is that we create successful people. We allow you to do what you do best and we take care of the rest.
Andrew: Rush offers support and training from key departments within head office and once a date is set for the launch, all departments simultaneously work towards that, including HR operations and education. We ensure that new members of the team are trained in the Rush way at the Rush Advanced Academy, and help with accounts – which deals with payroll and setting up the necessary HMRC payments – PAYE, VAT and tax.
What area of the country are your franchisees based? Is there a particular part of the UK you want to expand to? Andrew: At present the franchises are London and Southern-based and we expect to spread the brand across the UK.
Contact: 020 8241 2086
rush.co.uk 103
Given our current economic climate, why should people franchise now? Andrew: Some of the risk in opening a new business is taken away if you go with a proven, known brand. This ensures you will have customers from day one. According to a NatWest/ BFA survey 60 percent of startups fail in the first three years and 90 percent of franchises succeed.
Why should prospective franchisees go with you? What’s your USP? Andrew: Rush provides constant education – both technical and business, backed up by constant monitoring and support.
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