This document provides information about starting a franchise business. It discusses what franchising is, the advantages and disadvantages of buying a franchise, how to select the right franchise, evaluating potential franchisors, financing a franchise, and answers frequently asked questions about the franchising process. The key steps outlined are thoroughly researching franchisors, speaking to existing franchise owners, ensuring the franchisor provides adequate training and support, obtaining legal advice, creating a business plan and cash flow forecasts, and understanding financing and security requirements.
A deck with compilation of strategic do's & dont's from various sources aimed to instigate you to better your franchise model strategy - especially focussed on franchises for fashion brands #wolfSIGHT #wofSIGHTS www.wolfzhowl.com
Advantages of Salon franchise in Delhi-NCRMonsoon Salon
The franchisor is providing a structure for the franchisee to follow, yet its up to the franchisee to take responsibility for his or her business growth and success.
A deck with compilation of strategic do's & dont's from various sources aimed to instigate you to better your franchise model strategy - especially focussed on franchises for fashion brands #wolfSIGHT #wofSIGHTS www.wolfzhowl.com
Advantages of Salon franchise in Delhi-NCRMonsoon Salon
The franchisor is providing a structure for the franchisee to follow, yet its up to the franchisee to take responsibility for his or her business growth and success.
This presentation tells you about the world of franchising. Why it's a great strategy to start your own business and how we can help you make the best choice.
An entrepreneur invests a lot of time and money in refining a business model.
• A franchise is a very good opportunity to leverage this investment and replicate a successful model.
• Both, the franchisor and the franchisee can generate profits individually from this wealth of knowledge.
• The franchise industry is growing world over as well as in India.
• In India after liberalization, the franchise model of business took off and has never looked back since.
There are various types of franchising systems that can be opted by the franchisees to invest in. Some of them include the dealer arrangement, marketing arrangement, trademark-usage arrangement, manufacturing arrangement, product distribution arrangement, etc.
https://www.sparkleminds.com/business/franchise-advertising/
Fundamentals in Real Estate Series Part - 2 MarketingRE/MAX Gujarat
Oftentimes more money is wasted on marketing than just about any other aspect of running a business. It is a difficult and vague science that many companies get wrong. The first lesson of marketing is to be careful when listening to experts.
Marketing by definition is to discover the needs and wants of prospective customers and satisfy them. What is important is to recognize that marketing is your dominant function. Marketing is what ultimately separates the great Sales Associate from the rest.
The MTL Professional Development Programme is a collection of 202 PowerPoint presentations that will provide you with step-by-step summaries of a key management or personal development skill. This presentation is on "Customer Style" and will show you how you can develop your own unique brand of customer service. will show you how you can develop your own unique brand of customer service.
Corporate Training : Sales & Customer Relation Mastery seriesAngela Hua Eng Bong
Sales and Customer Relation Mastery training series, covering area of retail sales environment, personalised and long term customer account management, customer relation and experiences.
This presentation tells you about the world of franchising. Why it's a great strategy to start your own business and how we can help you make the best choice.
An entrepreneur invests a lot of time and money in refining a business model.
• A franchise is a very good opportunity to leverage this investment and replicate a successful model.
• Both, the franchisor and the franchisee can generate profits individually from this wealth of knowledge.
• The franchise industry is growing world over as well as in India.
• In India after liberalization, the franchise model of business took off and has never looked back since.
There are various types of franchising systems that can be opted by the franchisees to invest in. Some of them include the dealer arrangement, marketing arrangement, trademark-usage arrangement, manufacturing arrangement, product distribution arrangement, etc.
https://www.sparkleminds.com/business/franchise-advertising/
Fundamentals in Real Estate Series Part - 2 MarketingRE/MAX Gujarat
Oftentimes more money is wasted on marketing than just about any other aspect of running a business. It is a difficult and vague science that many companies get wrong. The first lesson of marketing is to be careful when listening to experts.
Marketing by definition is to discover the needs and wants of prospective customers and satisfy them. What is important is to recognize that marketing is your dominant function. Marketing is what ultimately separates the great Sales Associate from the rest.
The MTL Professional Development Programme is a collection of 202 PowerPoint presentations that will provide you with step-by-step summaries of a key management or personal development skill. This presentation is on "Customer Style" and will show you how you can develop your own unique brand of customer service. will show you how you can develop your own unique brand of customer service.
Corporate Training : Sales & Customer Relation Mastery seriesAngela Hua Eng Bong
Sales and Customer Relation Mastery training series, covering area of retail sales environment, personalised and long term customer account management, customer relation and experiences.
Programa del Colegio Superior de Coaching diseñado para incorporar las herramientas más eficaces del Coaching, la Inteligencia Emocional, la Neurociencia y la Consultoria de personas en las organizaciones deportivas. Nuestra finalidad es facilitar el trabajo de las personas, para las personas desde las personas, a traves de entrenamiento en habilidades y competencias sociales, generando la actitud correcta y la motivación necesaria.
OpenSuse 2015: Secure Deployment Changes Coming in MySQL 5.7Georgi Kodinov
A talk delivered to the OpenSUSE 2015 conference.
The slides outline the recent trends in secure MySQL deployment. It then goes to enumerate the changes we did in 5.7 that relate to a more secure deployment.
An Employment Franchise offers individuals the opportunity to establish their own business within the dynamic field of staffing and workforce solutions. As a franchisee, entrepreneurs gain access to a proven business model, comprehensive training, ongoing support, and a recognizable brand name in the industry.
Expert franchise consultants india -2021Sparkleminds
Best franchise in India:
The franchiser has promotion as one of the Modern Methods are Social media marketing and perfect match google ads and SEO on your website we bring a customized solution from our brand owner and expand a brand anywhere in India.
How to Franchise Your Business Franchise Connect Consulting RagersvilleIndia
The History of Franchising
What Makes a Good Franchisor
Turning Your Business into a Franchise
Why Use Franchise Connect / Signature Franchising
The Process
Questions and Answers
Learn from industry expert the ins and outs of franchising as a route to self-employment, as an investment strategy or both. Hear top tips, how to investigate great brands, turn your dreams of entrepreneurship into reality.
Branding, Trademarks, Operational Strategies, and Business Practices.
The top way to investor and investment without any flows top experts here
https://www.sparkleminds.com/business/franchise-advertising/
Has your business growth slowed or plateaued? Are you wondering how to scale your business, but don't have a lot of time or money? There are many ways to expand a business but most involve substantial amounts of both time and money. But there is another way - three other ways, actually. Business and franchise consultant Robin La Pere shows you three ways to OPTM-ise your business - that is, expand using Other People's Time and Money. He discusses the advantages and disadvantages of each of the three ways.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
2. 2
When you’re planning a new
business venture, you want
more than just a bank account.
At HSBC, we know the best business
banking isn’t about money – it’s about
creating strong, supportive relationships.
Not to mention reliable, flexible and
consistently high quality service.
Buying a franchise is probably one of the
most important decisions you’ll ever make.
This guide takes you through all the factors
you need to consider and how we can help.
We understand that every franchise is
different, with different visions, ideas,
success and direction – therefore we provide
a range of business services tailored for
franchise owners. Our experienced business
managers can make fast, effective decisions,
helping potential franchisors and franchise
owners to establish their businesses and
build their success.
We also encourage successful and ethical
franchising through our sponsorship of the
British Franchise Association Franchisor and
Franchisee of theYear awards.
Buying a
franchise
To find out more about our
support for franchises:
Call us on 0121 455 3438*
Click on hsbc.co.uk/franchise
Email us at franchiseunit@hsbc.com
*Lines are open 9am to 5pm Monday to Friday
excluding public holidays
3. 3
What is franchising
Franchising is a ‘joint venture’ between an
independent person (the franchise owner)
and a business owner (the franchisor) who
want to expand their activities. The venture is
governed by a legal agreement (or contract).
This gives the franchise owner the right
to operate using the franchisor’s trade
name/trademark, in accordance with their
business format for a specific period of
time. All aspects of the franchise owner’s
business are strictly controlled including
image, products or service, systems and
administration.
This method is usually known as ‘business
format franchising’ and a well-established
and proven business format franchise
should provide:
an established market for the franchisor’s
products or services
proven sales, marketing and operational
procedures
the benefit of an established business
name
training (ongoing support and help
in running the business)
where appropriate, help in finding,
fitting out and furnishing premises.
In return, you pay the franchisor an initial
franchise fee to ‘buy in’ to the franchise.
You will also pay ongoing management
service fees, or a mark-up on the goods
and materials supplied by the franchisor.
You may also be asked to contribute to
national advertising costs.
4. 4
Proven format – you enjoy many of the
advantages of an established business,
such as a tried and tested product or
service, a set of established operational
guidelines and in most cases, a pretty
good idea of whether or not the format
will work in a chosen area or location.
You can also call on the experience and
expertise of both the franchisor and other
franchise owners.
Trade name – particularly where a
franchise operation is well established,
potential customers will be familiar and
comfortable with the product or service
you are offering and it should take less
time to establish your business.
Training and support – you will be trained
in all aspects of the operation including
product knowledge, customer service
standards, book-keeping, VAT returns and
legal matters such as health and safety. It
is these areas that often cause the newly
self-employed the greatest difficulty and
are often neglected because of the day
to day pressures of running and expanding
a business.
Advertising and promotional support –
undertaken by the franchisor both locally
and nationally.This means that your
business can be promoted in a way not
normally available to the small business
proprietor, for example,TV and national
press. Promotional support may include
leaflets, ‘freebies’ and special offers.
You may have to pay a small levy to the
franchisor for these services.
Bulk purchasing and negotiating power
– you may receive your supplies from the
franchisor. Because all purchases for the
operation are being made through a central
point, significant discounts can often be
negotiated.
Research and development –
no business can afford to stand still. If it
does not develop and change, it is likely,
in the long run, to decline. A successful
franchise operation will have the resources
to devote to research and development.
Finance – because you have the benefit
of a proven business format behind you
and projections which are normally based
on reality and experience, your bank is
more likely to look favourably at your
lending request.
The advantages
5. Lack of independence – the franchisor
will control many aspects of your
business and receive a proportion
of your sales income.
If the franchisor fails – this could have
major implications for you and the other
franchise owners, and if many of the
other franchise owners fail, again this
could damage your business.
Devaluation of trade name –
if, for instance, a widespread outbreak
of food poisoning is traced back to one
of the outlets of a well known franchise
and given national media coverage, you
and all the other franchise owners may
suffer accordingly.
Restrictions on sale of business –
a franchisor should take great care
to ensure that franchise owners are
‘right for the business’ and will not
allow you to sell without approval.
Nevertheless, the franchise contract
normally allows you to sell your
business, subject to the conditions
of the agreement.
Restrictions on business activity –
the franchisor will not normally allow
you to become involved in activities
outside the agreement.This may mean
you are unable to exploit profitable
business opportunities within your
franchise operation.
The disadvantages
5
6. 6
Look at your own skills, your background, training and qualifications and
build these factors into your choice of franchise.The franchisor will in turn
be looking at the qualities you possess to ensure that you are a suitable
franchise owner for their network.
Ask yourself the following questions:
Are you a hard worker?
Is your health good?
Do your family support your plans
to go into business?
Can you make tough decisions?
Are you able to take responsibility?
Do you relate well to people?
Are you keen to provide good customer
service?
Have you got personal savings or assets
to put into the business?
Do you think buying a franchise means
that you won’t have to work so hard?
Would you resent being told how to
run your business?
The following are the main business
categories that lend themselves to
franchising and all have franchises in varying
stages of maturity and varying start-up costs.
• building and maintenance services
• catering and hotels
• cleaning and renovation services
• commercial, industrial and home services
• direct selling, distribution, etc.
• domestic, personal and caring services
• employment search, training, etc.
• estate agents, business transfer agents
• parcel and courier services
• printing, copying, graphic design
• retailing
• vehicle services.
Within those business categories, there are
different types of franchises, including:
‘Management’ franchise – often taken on
by people who were formerly professional
or ‘white collar’ employees, eg, printing/
copying, sign production.
Van’ or ‘job’ franchises – usually
undertaken by one person and often
from home, eg, van based distribution.
Investment franchises – higher cost
investments where the investor does not
normally get involved in the day to day
operations, eg, hotels, restaurant chains.
Retail and fast food – although franchise
owners will often work in the business,
they will normally also employ staff, and
may eventually run more than one outlet.
How do I find the
one for me?
One of the best places to start is with
the British Franchise Association
(BFA).The BFA was formed in 1977
by leading franchisors. It established
a code of conduct for franchisors
and ensures that the code is strictly
enforced.
7. 7
When you take up a franchise, you are entering into a long term business
relationship with the franchisor – so it’s extremely important that you check
their background and business performance of your prospective franchisor.
However enthusiastic you are, don’t rush and
be wary of franchisor pressure to sign up,
particularly the “If you don’t sign now you
won’t get another opportunity” approach.
Work through the following checklist to
satisfy yourself that you are entering into a
sound business venture:
How long has the franchisor been
in franchising?
What is the background of the directors?
How much expertise/experience do the
directors have in the business they are
franchising?
Is this business financially sound? Ask for
three years’ audited accounts, and current
management accounts if possible.
Ask your accountant to look at them.
Is the franchisor a member of the British
Franchise Association? If not, why not?
How many franchise owners have failed?
Why?
If the franchise is new to the market,
what pilot scheme did the franchisor
operate? Remember that when buying
a new franchise you should get a proven
business format and as much information
as possible on the pilot operations.
What initial and ongoing training is offered?
How much support is given in choosing
and fitting out premises?
Is there a market for the franchise’s goods
or services? Has there been any market
research carried out?
How much does the franchise cost and
what does the price include? How does
this compare with other franchises?
How much will you have to pay on
an ongoing basis? (This is normally a
percentage of turnover, or a mark-up
on goods supplied).
Have you been given any financial
projections for your business? Have
you seen any actual trading figures from
existing franchise owners that show
whether these projections are realistic?
Who are the main competitors and how
do they compare in terms of price, quality,
delivery and service?
Is there a long term market for your goods
or services, or is the franchise operating in
a market subject to changes in fashion?
Is the business seasonal?
What sales area is being offered? Is it
postcode based or geographically based?
Is there a set territory?
How long is the term of the legal
agreement – can you renew it?
Do you have to achieve minimum levels
of turnover, or buy minimum amounts
of stock? What will happen if you don’t
achieve this?
Can you sell the business in due course?
What restrictions are there on sale?
Ask the right questions
8. 8
How many existing franchise owners are
there? A good franchisor should be happy
to provide you with a list of the names and
addresses of all existing franchise owners
and for you to talk to them. Visit and maybe
spend a day with two/three franchise
owners.You will get much closer to the
reality of the business and gain a closer
understanding of what is involved. Work
through the following checklist of questions
with existing franchise owner:
• Did the opening of your business
go according to plan, or were there
unexpected problems? If so, how did
the franchisor help you to solve them?
• How effective and useful was your
initial training? Were there any hidden
or unexpected costs?
• How much support does the franchisor
give you on a day to day basis? Has the
franchisor been helpful and supported
you through any difficulties?
• Does the franchisor visit you regularly?
• Were the operations and training
manuals well written and useful?
• If products are supplied by the franchisor,
is delivery prompt and quality consistent?
• How long did it take to break even, and
was that longer or shorter than expected?
• Has turnover and profitability been in line
with initial projections?
• Does the franchisor arrange meetings
and conferences for the franchise owners?
Is there a regular newsletter, or other form
of communication within the network?
This is not an exhaustive list.There may be
other aspects of the business you will want
to explore.
Franchisor support
Having established the soundness of the
franchisor and the business, you should
then look at the strengths and weaknesses
of the franchise operation.The level of
support and training available from the
franchisor both at start-up and later on will
be crucial to the success or failure of your
business. Support can include accountancy
packages and advice; holiday cover;
national and local advertising; regular
communication through a newsletter, new
products, services and market information
and ongoing training.
Many franchisors run, at their own expense,
annual national franchise conferences and
franchise owner associations.
There should be a comprehensive
operations manual to give you guidance
on all aspects of running the franchise.
For example, what help, if any, does
the franchisor give in respect of any
recruitment and training you may have to
undertake? Some franchisors will train your
staff for you. Some will train you to train
them. Others give little or no help.
Another important factor is the regulatory
aspect of the franchise operation –
particularly insurance, health and safety, tax
and local by-laws in relation to the public
and employees.Your franchisor should help
you deal with all these matters and advise
you on any changes in the law that might
affect your business.
Remember, you need to be happy with
the results of your research before
entering into any agreement.
9. 9
Do I need legal advice?
Yes. We strongly recommend that you have
your legal agreement vetted by a lawyer
specialising in franchising. We have negotiated
a deal with a specialist franchise lawyer to vet
a franchise contract for a reduced fixed fee of
£395.00 including VAT. Further details can be
found at the end of this guide.
You are unlikely to get a franchisor to amend
the contract, as franchise owners should
be operating on the same terms. However,
you do need to be fully aware of what your
obligations are and the penalties you may
incur if you do not meet these obligations.
How much can I borrow?
For an established franchise with a good
track record you may be able to borrow up to
70% of the start up costs including working
capital. For a newer franchise it is likely that
you will have to put in at least 50% from your
own funds. It is very important that you do
not over borrow but it is also important that
you are not under funded.
Your personal and domestic outgoings will
obviously determine the level of drawings
you would need to take from the business.
We recommend that you complete a
personal budget schedule to help you
establish exactly how much you ought to
allow for your needs.
Do I need a business plan/
cashflow forecast?
Yes, even if you do not need to borrow,
a business plan is vital to help establish
where you are, where you are going and
how you intend to get there. It is a statement
of your objectives, estimates and financial
forecasts and should contain cashflow
forecasts, which your franchisor will often
assist you with.
The banks will need to see your business
plan to help assess any request for finance
and HSBC’s Starting a Business Guide will
help you through the process. We also have
an easy to use business plan and cash flow
forecast template provided on our website
www.hsbc.co.uk/franchise.
What rate of interest do you charge?
Interest rates vary depending on the amount
borrowed, how much stake you have, what
security is available etc. However, we see
franchising as a less risky way of starting a
business so it is likely that interest rates for
a franchise owner of an established franchise
would be lower than those for a stand alone
business. Some of the more established
franchises have special terms with HSBC.
These are some of the questions we are often asked by prospective
franchise owners:
Frequently asked questions
10. 10
Do I need security? What security
will the bank require?
The need for security also depends on the
amount borrowed and how much stake
is available, but will normally be required.
This is often going to be a charge over
the domestic property although there
may be business assets which could be
taken as security. If there is insufficient
conventional security, we may be able to
use the government’s Enterprise Finance
Guarantee scheme.
Does it matter if my franchisor
is not a member of the British
Franchise Association (bfa)?
HSBC is an affiliate member of the bfa,
which was formed in 1977 to establish
a code of ethics for franchisors and
to ensure that the code is adhered
to. Membership of the bfa does not
guarantee the success of your franchisor
but does indicate that the franchise has
been accredited by the Association and
meets its ethical guidelines.
Where can I go for more
information?
Business Link may be able to assist locally
with business planning and you may
want to speak to your accountant about
your business plan. Of course, your local
HSBC manager will be happy to discuss
your business plan and discuss a tailored
finance package for your needs.
See ‘Useful Contacts’ section for details
of publications and websites providing
more information about franchising.
The agreement (or contract), which will be
legally binding once it is signed, is a vital
aspect of the franchise operation. It should
cover issues such as:
obligations of the franchisor
obligations of the franchise owner
right to renew
training
fees and payment
insurance
trademarks
sale of the business
death or incapacity of the franchise
owner
termination.
Ethical franchising requires that all franchise
owners are treated fairly and no franchise
owners should be treated more favourably
than others in their network.This means
that the franchise contract should be the
same for all franchise owners. It is therefore
unlikely that a franchisor will amend the
terms of the contract. However, having
a contract vetted is extremely valuable.
As a prospective franchise owner you should
always take legal advice from a lawyer
with a specialist knowledge of franchising,
preferably one who is an affiliate member
of the British Franchise Association.
See ‘Fixed fee vetting scheme’ at the back
of this brochure for details of how you can
have your contract vetted for a reduced
fixed fee.
The legal
agreement
11. 11
Initial franchise fee – this is a one-off fee
to ‘buy-in’ to the business. It reimburses
part of the franchisor’s costs in developing
the franchise operation, recruiting you
and, where appropriate, helping you find
suitable premises.The fee is normally
5 –10% of the total investment cost,
although the percentage may be higher
for a low cost franchise.The fee should
not include a large profit element for the
franchisor.
Training fees – usually included in the
franchise fee, but sometimes itemised
as a separate charge.
Premises – occasionally, the franchisor
may take the head lease and grant you
a sub-lease.There will sometimes be
a premium and/or advance rent to pay.
Shopfitting – the franchisor may have
arranged for a specific firm to fit premises
out in a standard format.
Vehicles – you may choose to purchase
outright, but are more likely to take out
a lease or hire purchase agreement. If so,
the setting up costs will include an initial
deposit only.
Initial stock – may be purchased from the
franchisor, or from an approved supplier.
You should have help from the franchisor
in establishing how much initial stock
is required.
Equipment – may be purchased from the
franchisor, although you may be able to
hire or lease it.
Working capital – to cover the initial
salaries, and other business expenses,
until cash is generated.
Promotional costs – the cost of local
advertising, mail shots, etc.These may
be covered by the franchisor and included
in the franchise fee.
Ask yourself the following questions:
• What is the total cost of the franchise
and what contribution can you make from
your own resources? Prepare a full list of
your personal expenditure, this will show
you how much money you will need to
take out of the business in order to live.
• Will you need to borrow and, if so,
how much?
• Do you need an overdraft to assist
with working capital, or a loan for the
purchase of fixed assets – or both?
• What security can you give to back up
your borrowing?
• How long do you need to repay the loan?
Remember that any loan will need to be
repaid by the end of the franchise term.
Financial aspects
Setting up costs
The cost of taking up a franchise will vary according to the nature of the
business and the size and location of your premises.You could invest as
little as £10,000, or as much as £500,000.You will have to pay some or
all of the following fees and costs:
12. 12
Borrowing money
Having worked out the start-up costs and how much you need to borrow,
look realistically at the potential profits of the business. Is the level of
investment justified and can you recover the money you have put into it?
It is important to know how much cash you
can put into the business and you must be
realistic when borrowing. You will always
be expected to put in a proportion of the
start-up costs – as low as 30% for some of
the more established franchises but nearer
to 50% for many. Ask the franchisor the
following questions:
On what basis have the financial forecasts
been calculated?They must be based on
the performance of the pilot scheme or
existing franchise owners.
Do the figures allow for drawings, taxation
and any depreciation?
How much is the initial franchise fee and
what does it cover? For example, training,
market research, sales promotion.
How much is the monthly management
service fee? What does this cover?
What do you get for this?
Are goods supplied to you at cost or is
a mark-up charged?
Is there a minimum fee or sales level?What
happens if this is not achieved? Start preparing
your business plan – this is a vital document
to obtain finance from the bank.Your chosen
franchisor will often help you with this.
Briefly, your business plan should cover:
Details about yourself and the background
of the business, as well as some
information about the franchise.
Break-even analysis, profit projections and
a cash flow forecast, demonstrating the
viability of the business and its ability to
meet all its commitments, including the
repayment of the borrowing.
Details of your personal finances – it is
important that you do a full assessment
of your personal financial requirements
and make sure that your chosen business
is capable of generating enough income to
cover these.
It is useful to provide your bank manager
with a copy of the business plan before your
meeting. We use the following approach to
assess your request for finance:
Person – we carry out a full review of your
background, your training, qualifications
and track record, financial resources and
suitability to run the business.
A franchisor will also look at this to ensure
that you are a suitable franchise owner.
Amount – we also look at the purpose for
which the money is going to be used and its
effect on your business. Is there sufficient
demand for your product or service (the fact
that you are going to be investing in a tried
and tested franchise format helps here)?
How will the money borrowed benefit the
business? What type of finance are you
looking for: overdraft, loan or a package
of financial services? How much are you
investing in the business? Normally you are
expected to contribute towards the total
start-up costs from your own resources;
have you asked for the right amount, is it
too much or too little?
13. Your franchisor will normally assist with setting
out details of start-up funds required and help
with the preparation of cash flow forecasts.
Repayment – it is not in our interest –
or yours – to lend you money unless
we think that you can repay it. Where is
repayment coming from; future trading
profits after allowing for all your other
financial commitments or from the sale
of an asset? Does the cash flow forecast
show that you can afford to repay? What
assumptions have been made in the cash
flow forecast? What level of sales are
needed to break-even and is it achievable? Is
there a contingency plan for any setbacks?
Security* – we assess the risk of lending to
you and decide whether security is required.
This will depend on our evaluation of your
business as a whole – the primary source
of repayment will be cash generated by
your business. No amount of security will
justify us lending to you if we feel that your
business is not viable.The last thing we
want to do is rely on the sale of security for
repayment – we would much rather see a
successful business continuing to trade. If a
business runs into difficulties, the earlier the
bank is told of any problems, the more likely
it is that we can help.
We always recommend that you take
independent advice from a solicitor before you
provide security. If no security is available, we
may be able to consider a loan backed by the
government’s Enterprise Finance Guarantee,
if your business is eligible.
The Enterprise Finance Guarantee is provided
by the government to help young businesses
with viable business plans, but limited security,
obtain bank loan finance. If you use this scheme
to obtain a loan from us an additional quarterly
fee will be payable to the government.
Interest and fees – when we set an interest
rate we take into account a number of
factors including your stake in the business,
security deposited and our evaluation of the
risk involved.There maybe some special
terms for some of the larger, well-established
franchisors.We may also charge a fee to
cover the costs of setting up new borrowing
and completing the security arrangements.
* If the security arrangements include a property
which is currently, or is intended to be used
as a domestic dwelling, either wholly or in
part, please remember that your home may be
repossessed if you do not keep up repayments
on your mortgage.
13
14. Finance options for your franchise
Choosing the right type of finance is
important.Your local HSBC commercial
manager will be happy to tailor a finance
package to match your needs.
Here are some of the options:
Business Overdraft
Easy to arrange, flexible borrowing to help
manage fluctuations in cash flow.
Small Business Loan
Borrow between £1,000 and £25,000.
Repayments and interest rate fixed for
the life of the loan.
Repayment terms between 12 months
and 10 years.
You can opt to defer your first repayment
for three months after the funds have
been credited to your account.
Flexible Business Loan
Negotiated rate loans suitable for limited
companies borrowing over £10,000 or
sole trader and partnership businesses
borrowing over £25,001.
Select a fixed or variable rate – the choice
is yours.
Interest payable monthly or quarterly.
Repay over periods of 12 months to
15 years (10 years for fixed rates).
Capital repayment holiday is available for
a maximum of two years on loans over
£25,001. During this time you will pay only
the interest.
For loans between £25,001 and £250,000
you can defer up to two monthly
repayments a year at no extra cost.
Pension-linked repayment options are
available on request.
14
15. Invoice Finance
Free up cash from invoices and improve
your cashflow.
Enterprise Finance Guarantee
This option could help you if you’re looking
to expand, diversify or need to increase
your working capital but are unable to obtain
a bank loan due to a lack of security.You
must have a sound business proposal.
Government guarantee secures bank loans,
covering 75% of each qualifying loan.
Available for sums of £10,000 to
£1,000,000.
Repayment terms between 3 months
and 10 years.
Individually negotiated interest rates
and fees.
Annual turnover should not exceed £25m.
Commercial Mortgage
Designed to help you buy property, extend
or develop your own business premises.
Borrow up to 75% of the purchase price
or professional valuation, whichever is
the lower.
Minimum loan amount is £25,001, there
is no maximum.
Repayment period is between 2 and
30 years.
Choose to pay interest either monthly
or quarterly.
Capital repayment holiday is available
for all, or part of the first 24 months.
Choose to defer up to 2 repayments
in any year.
Select a fixed or variable rate mortgage –
the choice is yours.
LIBOR-linked rates are available for loans
over £100,000.
Protect yourself against interest rate rises
for loans of over £250,000.
15
16. 16
This may well be a difficult time as you wonder
if the customers will ever appear and whether
you can make a success of this new business.
But don’t panic – your franchisor should be
there to guide you and help you through
the crucial initial trading period. Follow
the system and don’t be tempted to do
things in a different way – remember, your
franchisor has probably spent years refining
and improving the systems and the way the
business is conducted.
If you need help, ask for it – most franchisors
will keep in close contact in these early days.
Other, more experienced franchise owners
may also be a good source of help.
One of the most important issues for a new
business is managing money.You may have
heard of the saying: turnover is vanity, profit
is sanity, CASH is reality.The cash flow of a
business is vital and in order to manage it,
you have to know where it is in the business.
You should have prepared a business plan,
especially if you have borrowed from a
bank to start up your business.The plan
will include cash flow and profit forecasts
– where you think the business will end up
during the first couple of years.
Don’t just put the plan away in a drawer
– monitor those figures so you have early
warning of any unforeseen problems. If you
have projected that turnover will be £5,000
in your first week, and it is only £1,000,
you will need to take some action. If you
are expanding faster than you anticipated,
you may well need extra working capital to
keep the business going.This is especially
true where you are providing a business to
business service and your invoices are paid
after a certain amount of time, maybe 60 or
90 days after the invoice has been issued.
In this instance, you may want to consider
our specialist invoice finance service.
Early warning of any problems (whether
caused by not enough business or too much!)
will enable you to take action where needed
and involve your bank manager before there is
likely to be strain on your bank account.
Once your business is operating successfully,
you may start to think about future expansion
– although of course, you need to establish
your business first and prove that it is
profitable.You may want to consider buying
another territory or opening another outlet
in the future. Involve your franchisor in these
discussions and talk to your bank manager at
an early stage.
Remember, a bank will want to see evidence
that the initial business is successful and
that you have considered the additional cost
both in time and money that setting up an
additional outlet or buying an extra territory
will involve.
Up and running
It is day one in your new business.You have probably spent a long time
getting to this point, from first thinking about going into business, to
finding out about franchising, choosing and researching your chosen
franchise.Then, perhaps, finding premises, undergoing training, getting
the business set up – and now you are open for business.
17. 17
You may not want to expand in this way,
but aim to grow and strengthen your own
business. A successful business is an asset
and you need to think about how this is
shown in your accounts when you want
to sell, either to retire or to move on to
something new.
Work with a good accountant and your
franchisor, to optimise the business’s potential.
Some franchise owners reach what franchisors
often call their ‘comfort level’ – in other words,
they are making a comfortable living and do
not want to grow the business. However, this
can be a dangerous policy – a business which
stands still can find itself going backwards.
Competitors could move in if you are not
realising the full potential of your business and
when you come to sell, it will not have as high
a market value as a successful thriving concern.
As part of our commitment to help
businesses, we offer flexible finance schemes
tailored to match the particular needs of your
franchise operation as well as a full range of
business services to help you both when you
are starting up and as your business matures.
So, whatever stage you are at, whatever your
business need, come and talk to HSBC – we
are here to help.
18. 18
British Franchise Association (bfa)
www.thebfa.org
The BFA was set up in 1977. It established
a code of business conduct for franchisors,
who make up its membership. The BFA
holds regular meetings and acts as:
the voice for responsible and ethical
franchising
a source of information for prospective or
existing franchise owners and franchisors
an arbitrator if there is a major problem
between a BFA member company and its
franchise owners.
The BFA offers a comprehensive and
informative franchise owner pack, which
includes copies of the books ‘How to
Evaluate a franchise’ and ‘The Ethics of
Franchising’. It also runs franchises seminars
throughout the year – details may be found
on the BFA website.
www.whichfranchise.com is a site affiliated
to the BFA, offering advice and guidance to
prospective franchise owners.
Daily Express – the official newspaper to
the British Franchise Association, carries
franchise features every Monday.
Business Franchise magazine –
on news-stands.
Visit www.businessfranchise.com.
FranchiseWorld – by subscription.
Visit www.franchiseworld.co.uk.
www.selectyourfranchise.co.uk is a site
that helps potential franchise owners find
their perfect franchise. It also contains legal
and helpful financial business information.
The Franchise Magazine – on news-stands.
Visit www.thefranchisemagazine.net.
Venture Marketing Group – organisers
of the main franchise exhibitions in the UK.
The main exhibitions take place in London
and Birmingham and there are also some
smaller regional shows. Various seminars
take place during the shows covering
topics such as franchise funding and legal
issues with presentations by franchisors
and franchise owners.There will also be the
opportunity to speak to franchisors from a
cross-section of business which will help you
decide what is right for you. HSBC usually
has a stand at the leading exhibitions, where
we will be on hand to offer guidance and
discuss your personal requirements.
Visit www.franinfo.co.uk.
Useful contacts
19. 19
We have negotiated a special scheme for our customers so that your contract can be vetted by
a specialist franchise solicitor for a reduced fixed fee.To take advantage of these special terms,
please fill in this form and send it direct to the following address, together with a copy of the
contract, your cheque, and proof of identity and address (ie, copy of passport and two utility bills).
Please complete the form in BLOCK CAPITALS.
To: Nina Moran-Watson
The Lodge House
Crow Lane
Tendring
Essex CO16 9AP
Tel: 0845 241 5633
email: nina@nmoran-watson.co.uk
Please provide me with an assessment of the enclosed contract for the following
named franchise:
I understand that there will be a fixed fee of £395.00 (including VAT) for your services
for which I enclose a cheque payable to ‘N Moran-Watson’.
I hereby authorise you to provide a copy of your assessment to HSBC Franchise Unit.
Full name and address: (please print clearly)
Other
Title: Mr Mrs Miss Ms Dr (please specify)
Surname
First name(s)
Home Address
Postcode
Daytime telephone number
Email address (if applicable)
Signature
Fixed fee vetting scheme
Have you:
• enclosed the legal contract
• enclosed your cheque/payment
• enclosed your proof of identity
• provided contact details
• signed this form?