FranchiseExhibition TheBritish&International
1 & 2 February 2019 | Olympia London In association with:
Supported by: Incorporating:
MAKE 2019 YOUR YEAR!
It isn’t often you have access to such a broad range of franchise opportunities and expert advisers under one roof. To take full advantage of the event, visit with an open mind: you might be surprised by what captures your imagination on site!
Drop into a few of the expert-led presentations, meet franchisors to find out more about specific franchise opportunities and benefit from specialist advice to help you take the next step on your franchise journey.
Franchise Magazine The The definitive guide to franchising 2019
Don’t forget!
Pick up your FREE copy of The Franchise Magazine from around the exhibition!
McDonald’s: Franchisor of the Year
In a year when the business celebrates 50 consecutive quarters of growth in the UK and Ireland, meet three of the newest franchisees as they share their journey and passion for the brand
The Franchise Directory | Exclusive interviews | Expert industry advice | The hottest franchises Legal and financial advice | Be your own boss | All you need to know about franchising
TFM_Cover_2019.indd 2 18/12/2018 20:28 76 | The Franchise Magazine 2019 77
The right partner
Vodafone is a global household name operator in the telecoms industry, but did you know that they offer a franchise opportunity? The Franchise Magazine talked to groundbreaking partner agents and the head of franchising to get the inside story →
Words: Annie Blinkhorn Exclusive Interview
22 |
FranchiseInfo.co.uk
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Franchise Advice
The golden age
It doesn’t matter whether you’re young or old – franchising is for you, argues Nick Williams of Ashtons Franchise Consultants
young and think franchisors won’t want you, or maybe you’re mature in years and worry that you’re ‘over the hill’. Relax! Franchising is inclusive, not exclusive!
S
Franchisors simply want franchisees who can do the job and follow the system. And remember, you are, after all, backing yourself with your own money, so it’s slightly different to a standard employer/employee dynamic. A couple of phrases spring to mind here. One is from an old manager of mine when I was starting my career in banking management: “You can be a fool at 15 or a fool at 50. Your age does not matter, your ability and your determination do.” Another is a classic: “If you think you can, you can. If you think you can’t, you can’t.” The choice is yours. So, let’s think through some issues. In franchising, a company harnesses the abilities, experience and energy of others to realise its ambitions. Provided with training, tools, a licence and ongoing support, franchisees establish the franchisor’s brand in new markets and explore these markets indirectly on their behalf – the more competent the franchisee, the
o, you’re thinking of becoming a franchisee but naturally have some concerns? Maybe you’re
more profitable the enterprise will be. So, straight away we see the potential for people to confuse energy with capability. A young person might seem ideal because they have more dynamism, but, on the other hand, an older franchisee is likely to be very qualified through their life experiences and past working environments, so their energy can be substituted for capability. Like with sports teams, it is often good to blend a mix of youth and experience, harnessing their respective attitudes for the greater good of the team. While young franchisees can bring energy, enthusiasm and malleability, they inevitably lack the experience, instincts, skills or business connections that older franchisees would have developed over the course of their careers. Being successful as a franchisee does not come simply from using energy by applying it wisely. If a franchisor can take a younger person with a mature outlook and give them support and skills to come forward, then they have every chance of being successful. Equally, however, older franchisees will be good at working cleverly – often requiring fewer instructions on basic business matters and less ongoing assistance, or needing less time to establish the business.
So, if we accept that a franchisor will be happy to talk with both young and old candidates from a variety of backgrounds, then there is an opportunity for everybody – but it’s still wise to try and match your skills and enthusiasms towards a brand that suits you. Some brands that have a very young client or customer base find themselves looking for franchisees who would serve those clients effectively, and they will often be of the same age group. On the other hand, if a business is in the consulting sector, for example, where business wisdom and experience matter to the client, then it is possible that a younger person would not be able to offer that approach. We are in an age where your actual age is unimportant. Older people rub shoulders quite happily with younger people in all sorts of social and working environments – the key is to keep an open mind and have enthusiasm. So, as we embrace 2019 with optimism, we wish you the best in your business journey! n
Nick Williams is a managing consultant at Ashtons Franchise Consultants
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What’s hot
Food
McDonald’s M
cDonald’s UK and Ireland enjoyed another record-breaking year in 2018. In October, the business
celebrated the 50th consecutive quarter of sales growth and is nearing the end of the rollout of its Experience of the Future (EotF) programme – a £650million investment programme in all restaurants. While EotF may be near conclusion, this is just the start – the innovation and investment continues. Following the launch of the company’s delivery service McDelivery, in collaboration with UberEATS, McDonald’s has successfully rolled out McDelivery to over 700 stores and it has been extremely well received by customers. EotF has been the most significant
image refresh the UK and Irish McDonald’s restaurants have seen. This has included changing the kitchen platforms to allow for innovation and customisation, including offering the Signature Collection; installing digital order kiosks, tablets and interactive play tables; and developing the MyMcDonald’s app, which was relaunched in October. Developments of the app now incorporate geotagging, which sends a signal to the restaurant to start preparing the order, and a digital hot-drink loyalty card. While McDonald’s is always developing
its product range, it also takes time to recognise old favourites. In 2018, McDonald’s celebrated 50 years of the Big Mac; a promotion so popular with customers it outperformed sales projections. The promotion included a Mac Jr, Big Mac and the Grand Big Mac. The iconic product’s birthday was celebrated by transforming the London BFI IMAX into a Big Mac along
with wider marketing on social media. All of this success wouldn’t be possible
without its franchisees. A decade ago, only 35 per cent of the McDonald’s UK and Ireland network was franchised; today that number has more than doubled to over 80 per cent. There are now more than 190 franchisees, who operate over 1,100 restaurants between them. McDonald’s is actively looking for
prospective franchisees across the UK and Ireland and has ambitious opening plans in the coming years. Becoming a McDonald’s franchisee is a great opportunity to start your own business, with the support of a larger, established organisation. You will have access
to McDonald’s tried-and-tested methods, its research and development functions and its supply chain, which works with more than 23,000 UK and Irish farmers to produce many of the ingredients that go into its menu, including beef, potatoes for its fries and organic milk for its teas and coffees. Most importantly, franchisees will have the support and training that a standalone business owner might not. There are three interview stages to the
McDonald’s franchisee recruitment process. Applicants that pass the first interview are invited to spend five days in a McDonald’s restaurant working alongside the crew
and managers in the restaurant team to determine whether franchising is a good fit for them and whether McDonald’s plays to their strengths. If successful throughout the selection process, applicants will be invited to participate in the Franchisee Training Programme, which involves restaurant training for a minimum of 16 weeks, followed by a business immersion and handover process. McDonald’s has recently introduced an educational bursary to support applicants during this time. Applicants receive extensive training on the McDonald’s model. This management curriculum typically takes business managers three years to achieve, it’s crucial to hit the ground running! Franchisees are fast-tracked through this training to ensure they know every detail about the business they are buying into. It’s a big commitment – McDonald’s is looking for ambitious, enthusiastic applicants who are in search of a long-term business opportunity. McDonald’s will provide you with the
framework and support so it’s down to you to create a successful and rewarding business. McDonald’s franchisees come from
a variety of backgrounds and, while you don’t need experience in the food industry, it’s important that you have a passion for customer service and a personable, motivating approach to be able to lead your team from the front. McDonald’s franchisees are hands- on operators who are proud to be employers of such diverse workforces. A McDonald’s restaurant has, on average, more than 100 employees, so franchisees need to be able to connect with people at all levels within that organisation. Although this will be a franchisee’s
business, they won’t be alone; each franchisee has access to a McDonald’s franchisee consultant. The consultants are there to support franchisees and offer guidance to optimise sales and profitability while keeping the standards high. They have, on average,
23 years’ experience with the McDonald’s system. In 2017, McDonald’s was recognised for the support it offers its owner-operators and won the British Franchise Association (bfa) Franchise Support award. In 2018, McDonald’s was recognised by the bfa again for its commitment to ethical franchising, the relationship with its franchisees and its recruitment model when the brand won the Franchisor of the Year Gold award, the most prestigious award in the franchise sector. Many people often assume they cannot
afford a franchise; however, the minimum investment for a McDonald’s franchise is £110,000. The typical payment needed to obtain the right to run a restaurant* in 2018 was £350,000-£1,850,000. McDonald’s will require you to provide 25 per cent of this cost in unencumbered funds and the remaining 75 per cent can be funded by a bank loan.
*In certain circumstances McDonald’s may be able to offer alternative financial arrangements
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