FROMTHEBFA
B
usiness format franchising has become a force to be reckoned with in recent years with the industry seeing year-on-year growth. The contribution of
franchising to the UK economy is now in the region of £15.1billion, an increase of 46 per cent over the past 10 years. During this same period, the number of people employed in franchising has increased by 70 per cent to 621,000; not only is franchising providing a stable growth strategy for your businesses but it is providing support for families all over the country. There is a significant appetite for those looking to invest in franchising, proven by the increased number of franchisee units, with a record 97 per cent of these reporting profitability and a very low failure rate. Multi- unit franchisees in networks and franchisees on the lookout for multiple brand investment opportunities to build their portfolios are frequent occurrences within the industry. These points alone evidence a clear confidence in the industry’s ability to satisfy investors at all levels. Franchising is not only providing a fantastic strategy for your expansion but it is helping support the economy, providing employment opportunities and a route for individuals to become their own boss. With one in five investors in recent years being under the age of 30 it is also proving to be an increasing trend among millennials who want to be their own boss.
So, how can we bank the positives and use these to unlock the true potential of franchising? What is it that keeps the industry so strong? And how can we encourage more people to consider franchising as an opportunity within reach for them and their future?
Back to basics We first have to look at the basic franchisor- franchisee relationship to see why the model is working so well. When you franchise your business, you undergo pilots and stress testing to refine the model, making all the mistakes so that a franchisee doesn’t have to. It is this formula that is key to potential franchisees.
You will capture the expertise and impart this knowledge during the training and induction period with the franchisee. Both parties are committed to succeed so
there is a common goal from the start; it is a win-win situation. Unknowingly, your prospects may come to realise the above through their market research and due diligence, but why make it difficult? Tell prospects from the off why franchising is a viable choice for their future, and include this in your messages.
Sustainability
As we consider what’s contributing to the upward growth trajectory of franchising we have to look beyond numbers. It’s one thing to start business relationships but keeping these on good terms is not always easy. The very nature of franchising means that there are clear expectations laid out for both parties at the beginning, each knowing and understanding their contribution to the relationship. Head office employees that support your franchisees are likely to be people-orientated with a passion to support your networks. They often deploy numerous tools to monitor franchisee businesses, ranging from analysing management information, progress against plan meetings, mystery shopping or just arranging a friendly catch up. The balancing act of support and mentoring versus monitoring and ongoing training can see a franchisor build a trusted relationship, where open, honest communication can happen and early detection of issues are quickly rectified with your intervention. You also have the opportunity to tap into your networks to understand challenges and test new initiatives on an ongoing basis, which, once proven, can be rolled out to the network. This approach encourages ongoing development, embracing a culture of continuous improvement that can see you weather many turbulent economic conditions. As your network grows, you effectively become an enabler to your franchisees, which is a very powerful resource to your franchise units. This is another key benefit to those that may be weighing up whether to go into business alone or join a franchise network. The
question is: are you telling this story through your marketing campaigns? And are your marketing distribution channels tapping into the ‘untapped’ markets?
Opportunity With so many people not truly understanding the concept of franchising, it is important that as an industry we talk about the potential that franchising has to offer, from the basics through to its secure nature. There are success stories within each franchise network, whether that is a franchisor initiative that is seeing franchisees and the brand grow from strength to strength, or a franchisee that may have built a successful business doing something they love that couldn’t have been achieved without franchising. If you can encourage your networks to share their stories and, in turn, share yours, we can broaden the reach of franchising and increase the prospect pool. Pip Wilkins, CEO of the bfa, says: “With
approximately 901 franchise systems and 44,000 franchisees, all with a story to tell, collectively we have a massive opportunity. We simply need to harness the great successes across all levels and utilise that to increase promotion and awareness. There is a lot we can learn from each other and a lot we can tell the world, which will see this industry transition into a league of its own.”
When it comes to discussing the opportunities franchising can provide, Pip is leading by example with the 2017 bfa annual conference, titled ‘The Power of Collective Ambition’, which focuses on strengthening collaboration across the industry. From franchise founders and owners through to support staff, professional advisers and franchisees, the bfa is working hard to support the industry as a whole, providing platforms to facilitate the power of collective ambition. n
British Franchise Association
www.thebfa.org
mailroom@thebfa.org
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