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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

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