Can franchising help grow the north-west’s economy? Robert Dancy nxo franchise and business consultant

- What is franchising? - Established north-west franchisors - A north-west growth opportunity

What is franchising? Franchising is where the owner of an established business agrees to licence the use of its operating systems, brand and other intellectual property, and then provides initial and ongoing training and support to enable another (the franchisee) to operate an identical business elsewhere. In return, the franchisee pays the owner (the franchisor) an initial upfront fee and an ongoing management service fee (MSF). Franchisees go into business for themselves, but not by themselves, so franchising can therefore be described as ‘supported self employment’.

What's in it for the franchisee? Proven business model Ready to use management systems Processes Supplier relationships Brand Training Continued business support and development Sense of community Better access to finance Higher success rate Little or no previous experience required

What's in it for the franchisor? Faster national expansion and brand awareness Transfer of risk Better motivated operators Smaller management team Dedicated distribution network Local knowledge from franchisees Group purchasing strength Long term and high recurring income A sellable business

Franchising stats: £13.7 bn annual revenue (up 20% from 2008) For 20+ years consecutively, around 90% of all franchisees have reported profitability. For 20+ years consecutively, less than 4% of franchise businesses have closed through commercial failure 930 franchisors in the UK. The north-west is largest region outside of the SE for franchising t/o and employment. Source: The bfa (British Franchise Association)

Established North West franchisors: Home Instead: 155, Cash Generator: 150 (BOLTON), Oscar: 100, Barking Mad: 65, Business Doctors: 42, Cash Converters: 160 (MANC) Snappy Snaps: 118 (MANC), Printing.com: 150+, Venture: 40, Metro Rod: 45, Bargain Booze, 100’s (CREWE)

A north-west success story

A north-west growth opportunity FranchisingWorks is an innovative social enterprise that tackles unemployment by helping create new businesses and jobs through franchising. It provides independent advice and practical support to people interested in exploring franchising as a way into self employment.

Barriers to potential franchisors Lack of in-depth understanding Very little corporate professional advice Lack of confidence Potential franchisor growth No FranchisingWorks franchisor equivalent No north-west franchisor focused support No local authority or government backing

Could we be the first to drive the franchisor potential in the north-west? Q & A

Thank you for listening: Robert Dancy nxo franchise and business consultant robert.dancy@nxo.net 01772 887 885 / 07789 176 045 Martin Jones Home Instead Senior Care COO martin.jones@homeinstead.co.uk 01925 730 273 / 07837 604 414

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