Are you the Best that You Can Be?

January 16th, 2017

Franchising is unlike virtually any other business model.

As part of your franchisor’s team you will face issues and situations not seen in other non-franchised businesses

Your business is largely, if not wholly, dependent on your franchisees for its success

But you and your colleagues have limited control over the franchisees’ activities

Yes, they must abide by the Franchise Agreement but part of your job may be to help them to do that willingly and enthusiastically without having to invoke that Agreement

Did you know that there are many workshops offered by The Franchise Training Centre that might help you have a better understanding of the Franchisor / Franchisee relationship and how you can enhance that relationship by your interaction with your franchisees?

If you are interested in learning new skills and improving your performance, then take a look here  at the workshops we offer

Then discuss any that might be of interest to you with the person in your business who is responsible for your training and personal development

You may even wish to consider working towards gaining the Diploma in Franchise Management offered by The Franchise Training Centre

The start of a new year is a great time for making resolutions

Make one of your resolutions that you will improve your own skills and personal performance at work over the coming year

In this way, you will enhance your contribution to the business and gain more job satisfaction

If there is a topic of interest to you that doesn’t appear in the current offering let us know and we will see what we can do

Look at what workshops you might wish to attend here and then….

Make 2017 the year that you move closer to Being the Best that You Can Be.

Best Regards,

Paul Monaghan
The Franchise Training Centre
Tel: 01904 561598


Is Your Business Slowly Failing?

January 16th, 2017

Franchisors are largely, if not wholly, dependent upon their franchisees for their income and, therefore, profit

Almost all will have territories where they have either no franchisee or one who is underperforming

Recruiting new franchisees for these territories is critical to the life of the franchise

New franchisees are like a blood transfusion – they may be the only way to save a franchise from a slow and perhaps terminal decline

But franchisors are continually telling us that that recruitment is becoming more and more difficult

Enquiries are still coming in but it is increasingly difficult to make any meaningful contact with the enquirer

They don’t take the recruiter’s calls and they don’t reply to emails

Why not??? Because they don’t want to talk to a salesman…or at least not yet

Twenty years ago, potential franchisees were keen to speak to a recruiter

It was the only way they could get the information they wanted about the franchise

Today they expect to be able to find all this information on-line prior to making a purchase / investment

Just like they do when they are looking to buy a new car or TV or virtually anything

But in the main franchisors are still trying to make telephone contact with candidates soon after their enquiry and before they have received very much information about the franchise

But their calls aren’t answered and the enquirer is soon branded as a time-waster or tyre-kicker

Whereas they might just be the transfusion the corporate body needs

Does your franchise need a shot in the arm?

Our two-day workshop on how to Speed up your Network Growth at Warwick University on Jan 31st / Feb 1st is guaranteed to give you new insights into franchisee recruitment

Yes, guaranteed!

If you feel you have learnt nothing new at the end of the two days, tell us and we will refund the workshop fee – Guaranteed

What have you got to lose? Nothing!

What have you got to gain? New life in your Network!

This workshop is one of the core workshops for the bfa’s Qualified Franchise Professional (QFP) qualification which more and more franchisors are achieving in an effort to improve their and their franchisees’ performance

And when it comes to recruiting franchisees, being able to say that you and your staff have achieved QFP status might just make the difference between a candidate choosing your franchise rather than a competitor’s

Just reply ‘Tell Me More’ and we’ll be in touch

PS Places are limited so reply now to secure your place!

Last Chance to Book for 2016  –  QFP 500 Points

November 30th, 2016


Paul Monaghan DiFM QFP

Paul Monaghan DiFM QFP








This is the last QFP training workshop for 2016 which is taking place next week.

December 6th / 7thHow to Understand Franchisees’ Financial Performance. Read overview. Watch short introductory video.

Book now by emailing us here or call us on 01904 561598.

Best regards,

Paul Monaghan
The Franchise Training Centre
Tel: 01904 561598

P.S. Click 2016 / 2017 Training Calendar to see our full training programme.




If you are thinking of expanding your business through franchise you should read this article by Brian Duckett.

November 30th, 2016

Home > Franchising Features > How to turn a successful business into a franchised network

How to turn a successful business into a franchised network

Being prepared to take advice is step one in expanding your business through franchise, advises Brian Duckett of The Franchising Centre

Something like one-and-a-half times every day, 365 days a year, someone contacts my business with a version of one of the following questions. Either, “I have a business which I want to grow into a national network – can it be franchised and if so, how do I do it?” or “I have a business and I’ve been approached by someone wanting to set up something identical using my name in a foreign country. What should I do?”

The good news is that these people are looking for professional advice rather than going down the do-it-yourself route to either domestic or international franchising. As someone once said, “Franchising is simple but it isn’t easy” and engaging experienced advisors will save rather than cost money if indeed franchising turns out to be a good idea.

In my view any business which can be operated as a branch network and which wants to grow should at least consider franchising as one of the options. However there is no ‘right way’ to franchise a business so simply copying what someone else is doing may not work. There may be a ‘right way’ for the business in question so the first job for the consultant is to establish whether the operation can be structured in such a way that franchising might indeed work in this case.

Whether considering domestic or international franchising the process is pretty much the same. You need to have a detailed business plan and budget; you need to have agreements and manuals; you need to have an attractive franchise offer package; you need to have a clearly defined franchisee profile and recruitment process; and you need to have processes for training and continually monitoring and supporting the franchisees.

Making the decision

There is a reason why the items above are presented in that order. The first part of a project for a potential franchisor has to be what we call the franchise development plan (FDP). In short, this involves building the financial models for the franchisee, then the franchisor. As well as P&L, balance sheet and cash-flow forecasts, this includes producing a blueprint listing all the things that will have to be done, who will do them, when they need to be done by and what they will cost.

In essence, using our respective experiences, we use the client’s and our best guesses about how everything will look – and the client then decides whether the inevitable investment for both themselves and the subsequent franchisees will be worthwhile for all parties. While all FDPs have a similar structure, the input and the output are completely bespoke for each client.

Enquirers often don’t know that every report has to be bespoke, nor do they immediately understand its relevance. Typically, they might say: “We don’t need all that. There are loads of businesses in our sector that are franchised so ours must be franchizable. We just want to get on with it so we need an agreement, a manual, a website and a stand at an exhibition.”

My response is: “There may be several of your competitors which are being franchised but they are not all doing it successfully. Even the ones that are successful may not be doing it in a way that will suit your business so you can’t just copy their fee structures and so on.”

In my view any lawyer or marketing agency that proceeds with a potential franchisor without checking that they’ve accurately worked out the financials is acting irresponsibly. It’s worth pointing out that there are two potential break points where the decision might be taken to abort the process. The first plan to be established is that for the potential franchisee. Sometimes, no matter how successfully the current business is operating, it becomes apparent that no way can be found to structure things in such a way that will be acceptable to the sort of person likely to be the franchisee. The investment of money and time may be too high, the likely returns too low. Whatever the reason, if it looks unlikely to be successful for a franchisee then it will never be successful for the franchisor, so all bets are off. There is no point continuing with the second plan.

However, if things are looking good for the franchisees we need to ensure that it will work for the franchisor. Can he recruit enough of the right franchisees quickly enough to make it worth investing all the resources necessary to create and manage the network? Although franchising is often referred to as using someone else’s money and effort to grow your business, there is no doubt that you have to invest plenty of your own to get the whole thing going. Believe it or not it’s possible that there could be a network of, say, thirty franchisees out there, all making money, while the franchisor is still not making a profit on his operation of the network. The number of franchisees at which it does become profitable, and therefore the time and money the project will require, is different for every business, as therefore is the funding requirement for the project. Some businesses have more resources and more patience than others so the decision is based on “Are we willing to wait that long and can we survive until we get there?”

Implementing the plan

The franchisee recruitment process, whether for domestic or international franchisees, can start as soon as the decision to proceed is taken. None of the necessary legal and operational documentation will yet have been produced but these can be prepared in parallel with recruitment, all being ready when required.

Some businesses attempt a DIY version of an FDP, which is better than nothing but one of the biggest mistakes is to overestimate the rate at which franchisees will be recruited and to underestimate the cost of doing so. With the best will in the world it may take up to six months to get the first franchisee signed up and most franchisors will not have the resources to recruit and train more than three in the first year, alongside continuing to run their existing business. Many DIY plans have between ten and twenty starting in that period and many show all the franchisees starting at the same time at the start of the year. The observant reader will spot serious flaws in the cash-flow forecast which may or may not have been prepared!

The average marketing cost of recruiting a single franchisee is north of £5,000 according to franchise sector research and the average conversion rate is sometimes higher than 100:1. Therefore to recruit, say, five in year two will need a marketing spend of £25,000, much of it in year one. It might then be necessary to generate 500 enquiries, all of which need someone with the time and skills to process them. Most new franchisors don’t have those skills in-house, so to avoid costly mistakes it would be sensible to get professional advice from accredited recruitment consultants.

What about master franchisees?

The process described and the advice given above applies equally to a franchisor creating an international network of master franchisees. However, the figures will change and the franchisor will want to prepare a further business plan to demonstrate that, now, three parties can all be satisfactorily rewarded. Is there enough profit in the system for each of the franchisor, the master franchisee and the unit franchisees to make a living and build their respective businesses? Finding master franchisees to effectively become the franchisor in a distant country will inevitably take longer, cost more and require local professional advice. Those master franchisees will in turn need their own local franchising advisors to guide their footsteps both in operating the business and in the franchising skills required to grow the local network.

In short, it would seem the sensible answer to the question posed as the subject of this article is “Find an experienced advisor with whom you are comfortable, who is part of a network of similar practitioners around the world to which you can be introduced”.

If you want to export your franchised brand throughout Europe read this article by Brian Duckett explaining the Importance of this event In Hamburg.

November 30th, 2016

Why You Should Attend the Global Franchise Forum 2017

The Global Franchise Forum 2017 takes place in Hamburg on April 26-28.. Brian Duckett explains the event’s growing importance


Ten years ago, after several years operating in international markets to help their clients find master franchises, a small group of European franchise brokers and consultants got together to form Franchise Pool International (FPI). Just two of the founding companies remain, Franchise Pool from Germany and The International Franchising Centre from the UK, but the network has grown to include thirteen member companies. The brainchild of Rolf Kirst, founder of the original Franchise Pool business in Germany, the idea was to foster co-operation, share best practice and facilitate the transfer of brands between European countries. Since then brands from as far afield as Australia and the USA have also used FPI members to introduce their franchises to the European market, often starting in the UK because of the common language, then moving onwards onto the mainland.

The FPI process requires that a brand’s international franchising offer is either checked or prepared by an FPI-member company before being referred on to other countries. As Farrah Rose, director of international development at The International Franchising Centre, explains “We and our broker partners have often been retained by serious investors in our respective countries to help them find well-prepared businesses from overseas. These people may be existing franchisors looking to acquire another system; they may be franchise executives who are ready to create their own networks; they may simply be business people looking to invest in a system and employ an experienced franchising team to run it for them. Whoever they are, they know what a good franchise looks like and they want to be introduced to opportunities that are proven in their home markets; that have researched the markets they want to go to; and that have prepared appropriate marketing, legal and operational documentation. We cannot risk showing them under-prepared businesses as our reputation will be shot and they won’t take our calls when we want to show them another one!”

 Master franchises

Just over five years ago a regular meeting of the FPI group brainstormed some ideas for changing the way master franchises were passed between members and, eventually, the Global Franchise Forum came together. The identified need was for well-prepared brands and receptive brokers to devote time to learning about each other and to have the opportunity to decide whether they wanted to work with each other. Would the brand work in a particular market and did the brand’s owners want to be there? It was decided that the best way to accomplish this was to get everyone out of their offices to an attractive city and a top class hotel where they could spend two days hearing about each other, socialising in special places and having one-to-one meetings where appropriate.

The first such forum was held in Venice, since when it has become an annual event, changing venues every year to so far include Vienna, Malta and Sitges. The most recent event was in Rotterdam in April 2016 at which nearly twenty international brands presented their master franchise opportunities to an audience of FPI-member consultants and brokers who between them cover 28 European markets. Brand presentations were interspersed with sessions from the brokers introducing the economies and franchising environments of their respective markets as well as providing masterclass sessions on all aspects of international franchising. There is also an opportunity for brands who are not yet ready to present themselves to attend as observers so they can learn from both franchisors and brokers, perhaps then being ready to present at the following year’s event.

The educational content of the Rotterdam event was stressed by Paul Thompson, CEO of UK-based franchise WaterBabies, who said “It’s incredibly important that franchisors who are considering going international come to these events to really learn best practice”. His views were echoed by Maron Boelens, business development manager for PowerSlim which is now spreading out from its original markets in the Benelux countries. “Today I have seen several organisations from many countries presenting their brands and we’ve learned a lot from them about presenting ourselves. You can be much better prepared if you attend such an event”.

Networking opportunities

It was the experience of the consulting team that most impressed Phil Ciniglio, European CEO of Australian brand Bartercard. He said “I’m extremely impressed with their knowledge and it gives me confidence to approach countries where their culture and language is so different. To be able to access a master franchisee who will be the right person for us is why I joined with this group and I would highly recommend it”. Similarly, Bruno Comellas, who is responsible for international expansion at No+Vello, the hair removal franchise from Spain, said “I would strongly recommend contacting Franchise Pool International as it’s not easy to find masters. You need people who know what’s going on in their country”.

Bruno also praised the networking opportunities, saying “It was a good opportunity to be here for two days and meet people from nearly everywhere in Europe” as did Simon Ferniot, president of French brand Boco who added “Even though you think you know how many countries you can get to, there are always more!”.

The 2017 Global Franchise Forum will take place in Hamburg on April 26th and 27th. Brand presentations are by invitation only and invited systems will need to have been assessed for their international expansion readiness by one of the FPI members. If a brand is not yet a client of an FPI member they can apply for details using the contact details in the box accompanying this article.


WHAT : Global Franchise Forum 2017

WHERE: Hotel Ameron Speicherstadt

WHEN: April 26 and 27 2017



How Would You Answer This Question

November 23rd, 2016

How Would You Answer This Question…   (500 QFP Points)    

If a franchisee asked their support manager a specific question about their year end accounts would they be able to answer it? Maybe a detailed question about the balance sheet, to explain a line in the P&L account or the difference between cash and profit?

Most franchisor support staff aren’t familiar enough with year end accounts to answer such questions and in fact, will steer the conversation away from having to. And that’s a pity, because with a little extra knowledge and the confidence to address such questions, your support staff would gain both a much better understanding of a franchisee’s business and be able to provide the sort of support that they really need.

Our last training workshop of 2016 is designed to help your team understand a set of accounts, feel more confident in their work and provide the sort of support in this area that franchisees so badly need.

December 6th / 7thHow to Understand Franchisees’ Financial Performance. 500 QFP Points.
Read overview. Watch short introductory video.

Book now by emailing us here or call us on 01904 561598.

Best regards,

Paul Monaghan Director
The Franchise Training Centre
Tel: 01904 561598

P.S. Click 2016 / 2017 Training Calendar to see our full training programme.