Insight
why 2019 has been better than previous years. For those who are finding recruitment tough going, however, particularly white-collar franchisors, Brexit is a word that is mentioned frequently. “One thing is for certain, you
Matt O’Neil
Franchise consultant at Franchise Advisory Services
“There is no crystal ball in franchise recruitment – I say this having spent 21 years of my life dedicated to it. “It seems that some franchisors
are feeling the pinch in terms of recruitment while others are having their best year.
“The franchisors that are recruiting well cannot give me a specific reason
can’t blame Brexit for everything. If your recruitment has slowed down previously whenever there has been a general election or political instability, then you may want to batten down the hatches over the coming months.
“During these periods of low
recruitment you may want to consider focusing on your current network. Grow your business by helping support their businesses. “I believe that selecting the right type of franchisees, and making sure
that you treat them well, should be one of the most important things for franchisors. It will also help you retain your network in times of low recruitment. “Instead of taking a hard-nosed
approach with your network, which will make validation even more difficult for potential franchisees during their due diligence process, it’s far wiser to build and promote a culture of help and mentoring. This will encourage your existing network to work hard and increase their profits, ultimately creating a happier environment for you and your employees, as well as increasing the value of your own business. “One thing is for certain, 2020 is going to be a very interesting year for franchising in the UK.”
Louise Harris
Franchise manager at easyStorage
“Our 2020 plan includes expansion into mainland Europe and beyond. Selling a master licence for our franchise, with no product movement, means that trade borders, trade deals and movement restrictions are unlikely to affect this. The only challenge we anticipate is our own travel in terms of visa restrictions, etc.
“Of concern is the greater impact on franchising. Our year ahead feels
positive, but it may be that premium brands, charging premium rates in a ‘luxury’ sector, may feel the pinch in an economic downturn. These businesses may need to invest significantly and diversify to attract a different type of franchisee.” “That said, we are in a strong position of anticipated growth. The storage industry is reporting increases every year and interest in our opportunity has been outstanding.”
James Thomas Commercial manager at d&t
“The future will certainly see some changes in the way franchises do business. Firstly, regardless of where you stand politically, I think we can all agree that the uncertainty this has already created for the UK economy is only likely to increase, so our advice at d&t is to be ready for anything. “Take the time now to rationalise
your cost base and look at other ways to strengthen your business to make sure you are ready for whatever
the future throws in your direction. Having a handle on the numbers by getting your accounts up to date will give you a better idea of which elements of your franchise need attention or support in the short or long term. Taking some advice from an experienced third party may pay dividends in the long run. They can often help you see the wood for the trees. “The second area of change will be
around Making Tax Digital – HMRC’s way of digitalising tax. In April 2019, businesses turning over more than
£85,000 per annum needed to submit quarterly accounts electronically; for April 2020 and beyond, this will apply to all businesses and franchises turning over more than £10,000 per year (pretty much everyone!). Getting advice on moving your accounting systems to the cloud early will ensure there is no panicking at the last minute! “As for what else the future
holds, we hope it is healthy and prosperous for the franchise industry and all those within it.”
30 | The Franchisor 2019
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