SAKS, RICHARD BLAND, GENERAL MANAGER
How many franchises does your company have? Richard: We have 160 franchises. Some salons are hair only, while the rest offer hairdressing and beauty therapy.
On average, how many franchises do you open per annum and at what rate are your numbers growing by? Richard: We always look to grow by at least five percent each year, which is eight sites per annum.
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? Richard: Towards the initial set up cost we ask that the franchisee pay a fee. For a Hair Agreement the franchise fee is £13,500 plus VAT, for a Beauty Agreement £8,000 plus VAT and for a Hair & Beauty Agreement £20,000 plus VAT. The fee is paid in one installment, with a term of 10 years and management service fees are 10 percent of gross turnover. We help them secure a loan; at
competitive and often discounted rates. Saks works with the franchisee by basing a proven model against the individual’s attributes. We then approach the banks together, allowing a franchisee to express themselves with the support and guidance of an experienced brand. Banks believe in Saks and are therefore very supportive to an individual’s application.
Saks at the L’Oréal Colour Trophy, Australia
Do you also liaise with estate agents on the franchisee’s behalf, to ensure they get a prime location and property? Richard: Yes. We help franchisees with site selection, dealing with landlords and agents’ lease legalities, etc.
What setup and ongoing business support do you give – HR, payroll, IT, PR/advertising, education/training? Richard: There are endless benefits to becoming a Saks franchisee. Saks is British Franchise Association (BFA) approved and has won many awards including four of the 11 at the Sapphires Awards 2009. Franchisees receive support and advice in a range of fields
Contact: 0845 678 0290
saks.co.uk 104
including finance, business reports, established systems, policy manuals and measurable standards (with policies for everything from how long the phone should ring, to customer care procedures and how often franchisees should appraise their team), site selection, property and lease, recruitment, personnel, salon launch and marketing. Saks also has a custom-made computer programme which enables franchisees to produce detailed reports that are regularly assessed by their BDM.
What area of the country are your franchisees based? Is there a particular part of the UK you want to expand to? Richard: Throughout the UK. Also in Northern Ireland, Dubai and other international sites. We will continue to open salons throughout the country.
Given our current economic climate, why should people franchise now? Richard: Hairdressing and beauty treatments are a necessity and salons with a strong proposition and business formula are best prepared to withstand tough economic times. In this time of uncertainty, franchise businesses across the country – not least Saks – are reporting continued growth and success, reinforcing the argument that franchising is one of the most successful and resilient business models in the UK.
Why should prospective franchisees go with you? What’s your USP? Richard: Saks has a clear business plan for the company as a whole, while every department is also well versed in what is expected of them. Saks keeps it simple and is very focused – if the company needs to change direction quickly it can. Team spirit is key; working well together is essential and employing great staff makes great things happen. The company relentlessly strives for success, and achieves it, but that success is cemented when it’s recognised by outside parties. Sir Bernard Ingham, President of the British Franchise Association (BFA), said: “Saks has vitality. They encourage their people to compete and then show them how to win!”
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