Stagecoach takes hit from East Coast franchise

June 30, 2018

STAGECOACH has seen profits tumble as the Perth-based transport giant booked a hefty charge linked to its problems on the East Coast rail franchise, and slashed its total dividend for the year.

And it warned operating profits from its UK rail operations will fall in the current year, with the cost of bidding for new franchises expected to offset profits from its East Midlands Trains contract.

The Edinburgh to London line was renationalised this month after the UK Government stripped Stagecoach and partner Virgin Trains East of the franchise in May. The partners had won the contract in 2014 with a deal to run the franchise until 2023.

The renationalisation came after Stagecoach reported mounting losses on the £3.3 billion franchise last year, with the company admitting its operation of the line had not led to the revenue and profits it anticipated when it won the contract.

Related: Stagecoach East Coast rail line franchise ‘to be axed in days’

Boss Martin Griffiths repeated that he was “surprised and disappointed” at Transport Secretary Chris Grayling’s move to renationalise the line as the company reported “significant exceptional costs” of £85.6 million relating to the franchise. Underlying profits at the group, founded by Sir Brian Souter and sister Ann Gloag in 1980, fell to £144.8m from £151m.

Group revenue was also down at the bus and rail giant, falling to £3.2 billion from £3.9bn as a result its South West Trains franchise ending in August. Revenue from UK rail dipped to £1.5bn from £2.1bn, with operating profit down 12.6% to £24.9 million.

However, Mr Griffiths highlighted “positive changes” to the franchise model, which he said will lead to the revenue risk being more evenly shared between operators and the Government.

He said: “We are pleased with the group’s underlying financial performance for the year ended 28 April 2018, when compared to our start of the year expectations.

“We were, however, surprised and disappointed by the Secretary of State for Transport’s decision to appoint an operator of last resort to take over the operation of InterCity East Coast train services from our Virgin Trains East Coast business. We are also disappointed to report significant exceptional costs in relation to that business.”

The company slashed the full-year dividend to 7.7p from 11.9p on its reduced exposure to rail. “Whilst the board understands the importance of dividends to its shareholders, the board also feels the dividend needs to be set at a level from which it can grow over time as well as being covered by normalised non-rail cash flows,” Mr Griffiths added.

Helal Miah, analyst at The Share Centre, said: “This slashing of the dividend may have been more drastic than expected but there was additional disappointment from management’s view that the rail business would continue to face declining profits while being exacerbated by new franchise bidding activity. Its bus operations however are doing well both in the UK and North America.”

The group said regional UK bus revenue was down 0.3% at just over £1bn. Its bus operation in North America saw revenue fall by 0.4% to $630m. Shares rose 4.3% or 5.8p, closing at 139.9p.

Source: Herald Scotland

Coffee franchise opens in new location thanks to Council funding and enterprise loans

June 29, 2018

International franchise, Insomnia Coffee is set to officially launch this weekend as a local entrepreneur opens its doors in Coalville, thanks to funding from Enterprise Loans and North West Leicestershire District Council.

The coffee shop, located on New Broadway near the Belvoir Shopping Centre, is the second franchise location for serial entrepreneurs Raj Aggarwal and his wife Sunita with their first Insomnia Coffee opening in Market Harborough more than two years ago.

Commenting on the launch, Aggarwal said: “We are thrilled to be having an official launch as we have been open for a couple of months now but we want to officially celebrate moving into town. We chose Coalville because we think it has a lot of potential – the local council is really investing in the area and we wanted to offer something that people can be proud of.

“Coalville has a rich history and we wanted to reflect that within the coffee house so we have big vinyl of the town’s mining history and artefacts from the local area. We’ve also employed around 12 staff who are from the surrounding area as we really want to keep it local and help regenerate the town.

“This is our second Insomnia Coffee location and thankfully North West Leicestershire District Council and Enterprise Loans both saw our plan and felt that not only are we creating jobs but also creating a beautiful environment of the people of Coalville to enjoy.”

Insomnia Coffee is an international coffee shop franchise which began in Ireland in 1997 and now has more than 150 locations across the UK and Ireland. Franchisee’s have to pay a small royalty fee but the coffee shops are largely run independently.

Related: Coffee Franchise UK – Should You Invest in a Coffee or Coffee Shop Franchise?

Enterprise Loans – a responsible loan provider operating across the East and South East Midlands – provided £100,000 in funding which, along with a grant from North West Leicestershire District Council and the couple’s own capital, helped set up the coffee house ready for trading.

Neil Millington, loan fund manager at Enterprise Loans, added: “We were delighted to support Raj and Sunita with their latest venture particularly as their business plan was very solid. They are genuine independent entrepreneurs and offering something different from the standard high street chains.

“Coalville is very well suited for independent shops and cafes so the launch event will certainly help cement their place in the town. I have every faith that Insomnia Coffee will become somewhat of an anchor store, pulling in customers and helping to rejuvenate the rest of the high street.”

Source: Business Leader

Children’s Franchises UK – Should you Buy a UK Children Franchise?

June 29, 2018

Children’s Franchises UK – the TOP 10 MUST KNOWS about finding and running a successful UK Children’s Franchise.

Buying and running a franchise business in the UK is easier, generally more profitable and certainly more popular today than ever. As we have reiterated throughout our free UK franchising guides and blog posts, franchising – when done right – can prove to be a lifechanging turn that can prop up, supplement or even replace your other sources of income.

While almost every business that focusses on retail customers can and has been franchised, children-centric businesses are no doubt among the hugest beneficiaries of the franchising business model. A lot of this has to do with the inherently customer-facing nature of such businesses. Very few businesses seem to require the kind of trust, faith and confidence that childcare and other similar businesses do, and hence, the credibility that comes with running your franchise under an established brand name just cannot be overstated.

In this post, we will take an overview of what children’s franchises are, how they work, what opportunities they bring to the table and what considerations you must make before you buy one.

Understanding the Demand for Children’s Franchises UK

No business can ever make it big if it isn’t based on a steady base of consistent market demand. Children’s franchises are no exception to this. If you are seriously thinking about running such a franchise, you are in for some good news in this regard. Children’s franchises are often ‘service-based’ franchises (more about this will follow), and they never really run out of the market demand as long as the overall economy is in a good enough shape.

Let’s take a quick look at some important numbers to understand this:

  • Approximately 18-19% of the entire UK population consists of children aged 15 years or less. This comes to a total market size of roughly 11 million – a good prospect for niche franchise ideas.
  • Even though the birth rate has been on a steady decline, the average rise in population – expected to touch 70 million by 2026 – is promising enough to assume that children’s franchises can stay profitable in the UK.
  • An average UK family spends approximately £10,000 or more on childcare, food and other costs per year for kids aged 5 or less. These costs only go up beyond this age. This is enough to show that parents can and are willing to spend – at times, even outrageously so – in order to afford their children the best facilities, education, healthcare and overall ‘growing-up’ environment.
  • The average monthly spending of a UK family on their children’s after-school activities is estimated to be around £200-250. This is indeed a positive sign for children’s franchises as far as the market demand is concerned.

Recommended: Here’s Why Franchising Is Here to Stay!

Children’s Franchises UK – Major Types

There exist quite a few types of children’s franchises and it’s rather impossible to list or discuss all of them here. For the sake of convenience, however, we can categorise children’s franchises into two broad categories – service based children’s franchises and product based children’s franchises.

Service Based Children’s Franchises

Most franchises that cater to children and their requirements fall into this category. These are essentially franchises that offer a variety of ‘services’ across numerous categories. From fitness franchises for children to preschools and playschools, these often tend to be time-intensive from the operator’s point of view.

Product Based Children’s Franchises

As the name suggests, such franchises focus on making products available to children. Depending on the costs of the products involved, the franchisees can either directly sell the products for profit or let the customers rent them for a fee. Common examples of product based children’s franchises include libraries, toy shops and sports equipment franchises.

What’s Popular?

While it’s always possible to come up with a niche idea yourself, many franchisees prefer to go with what’s proven to work. Therefore, when you take a look at some of the most common children’s franchises in the UK, you’re bound to find a recurring theme. This simple assessment is usually adequate to know for yourself what’s popular and how you can make it work for you.

UK Childcare Franchises

This is perhaps the most popular category among all children’s franchises in the UK. More and more parents – owing to the difficulties of the modern, hectic lifestyle – seem to require additional help from expert professionals as their children are growing up. From the basic, age-old nursery model to state-of-the-art preschools, playschools and babysitting services, childcare franchises have managed to address this issue, with still ample growing room left. If you wish to operate such a franchise in a town or a city where there is a clear demand for these services, the potential for growth is quite promising.

Clothing Franchises for Children

A clothing franchise for children is, at its heart, a retail franchise, and thus, carries all that is good and bad about retail franchises. For starters, it can yield you a great deal of profit if your franchise can grab a significant share of the market. On the down side, however, the costs involved in maintaining a prime storefront location – along with the frequent changes to the inventory – mean that you always need to be on your toes.

Children’s Education Franchises in the UK

Just like childcare franchises, education franchises for children have been hugely successful and popular across the UK – especially the big cities and relatively affluent towns. Many parents are willing to spend good money to afford their kids a chance of building upon the education they receive at schools. A typical children’s education franchise in the UK offers subject-specific or hobby-specific education. For example, super-niche franchises help children grow their interest and curiosity in their favourite subjects such as mathematics, languages, sciences, history and so forth.

At the other end of the spectrum, tutoring franchises aim to help children get better at what is already being taught in schools. Such franchises usually cater to children between the age of 10 and 15.

Art Franchises for Children

A huge chunk of after-school activities for children in the UK includes learning and mastering various arts. From music to dance and theatre to painting, these arts make for great franchise ideas. Of course, if you are about to go ahead with an art franchise for children, it’s imperative that you not only share the love for the given art, but also are adequately good at it.

Fitness and Sports Franchises for Children

The obesity among children is already at an alarming level in the UK. Therefore, it’s no wonder that many parents are only too happy to let their children take up specialty fitness classes and sports coaching. From yoga sessions tailored for kids to fairly expensive cricket, football or athletics coaching, a number of ideas are already being explored by fitness and sports franchises for children in the UK.

These five mainstream ideas for children’s franchises are further complemented by innovations that target a specific group of children. For example, highly-specialty fitness franchises for differently abled children, reading groups and classes for children facing dyslexia, spoken language tutoring for children recently migrated to the UK etc.

How Much Does a UK Children’s Franchise Cost?

This, quite likely, has to be the most important question you would want answered. But unfortunately, there are no straightforward answers present to it.

You will, however, be happy to know that most children’s franchises in the UK cost much less than other popular franchises such as fitness franchises or food franchises. This is partly due to the fact that the most extensive component of the recurring expenses is your time and the services you provide. So, barring the initial investment (franchise fees, rent, equipment cost etc.), the operational costs seem to grow less drastic as your business attains enough stability.

A typical, fairly popular and proven-to-work children’s franchise would require you to put aside at least £5,000 to £30,000 in initial investment. This number can change depending upon the location you wish to operate your business in. In most cases, the initial investment is inclusive of the franchise fee, deposits, equipment costs, training costs and marketing costs.

As far as operational expenses are concerned, all children’s franchises need to bear the common franchise costs such as recurring royalties (5 to 10%), rent, insurance, staff salaries, maintenance costs and so forth.

Recommended: What is franchise insurance and how does it work?

How Do Children’s Franchises Really Make Money?

The revenue model for children’s franchises is non-complicated. If the franchise in question is service based, the customers are usually charged on an hourly or per session basis. For example, a popular music tutoring franchise operating in London charges £10 per session to their customers, with up to 10 children being enrolled in a single session.

For product based children’s franchises, the revenue can be generated via direct profit margins as well as consistent subscription fees.

What Does It Take to Run a Children’s Franchise in the UK?

Running a children’s franchise may well be similar to running other franchises in terms of the economics, but that usually is where the similarities end. You need to possess a special, highly specific set of skills to be able to successfully run a children’s franchise.

Are You ‘Good’ with Kids?

It’s a no-brainer, really.

If you want to run a children’s franchise, you need to be good at handling kids, attending to their unique needs and being patient with them. A lot will, of course, depend upon the age group your franchise will be targetting. This also includes being consistently patient with the parents, attending a more than fair share of frequent phone calls and creating a truly warm, amiable and friendly atmosphere for your customers.

Are You Good at What You’re Trying to Sell?

You need to possess adequate skills – as we discussed earlier – before you try to sell them to others. It always helps to be passionate and experienced when it comes to running children’s franchises.

This is in stark contrast with some of the other franchise ideas out there. You do not necessarily need to be a business graduate to run a retail franchise, but if you wish to run a football coaching franchise, you will certainly need to be good at the sport as well as teaching it.

How Many Hours Can You Put in Every Week?

Children’s franchises are popular among would-be franchisees for being relatively less demanding of their time. Many pre-school and after-school classes, tuitions and nurseries run alongside the regular school year, giving franchisees a good deal of time off. Similarly, many sport and fitness franchises run exclusively during the summer break, giving franchisees the rest of the year off to pursue other interests.

If you are not willing to commit your entire work week to the franchise, children’s franchises can well be the ideal choice for you.

How Much Are You Expecting to Make?

While it’s certainly possible to build a children’s franchise that can potentially replace your regular job, it’s still a steep climb. Therefore, it’s always a good idea to talk to franchisees who have already taken this road before to know how much you can make. You can also go through our free guide to choosing a franchise to learn how informed decision making can help save a significant amount of time, money and efforts.

Other Considerations

To run a children’s franchise is to be responsible for the wellbeing and safety of the kids while they are entrusted to you. Therefore, you will need to be extremely responsible, careful and caring to be able to gain the trust of your customers. Additionally, the franchisor will require you – and your staff – to pass CRB/DBS checks before you are allowed to run the franchise. All children’s franchises also need to comply with the applicable local rules, laws and regulations.

Working with Schools and Clubs

A good way of bypassing the heavy marketing expenses is to negotiate bulk contracts directly with local schools, nurseries and children’s clubs. Many franchisees – especially the inexperienced ones – aren’t even aware of the fact that schools are often all too willing to ‘outsource’ some of their responsibilities.

For example, many schools are open to hiring the services of franchises when it comes to conducting camps, coaching sessions, art tutorials, language classes and other similar extra-curricular activities. If your young franchise can manage to tie up with one or two local schools, it can be all that you’ll ever need to not only get the word around but also generate a reliable and steady cashflow.

Top UK Children’s Franchises

Here are six of the most popular children’s franchises in the UK across various categories.

· Tumble Tots

  • Minimum Initial Investment: £14,000 (excluding taxes)
  • USP: Physical activity, agility and concentration training
  • Multiple programmes
  • Exclusive territory allocation
  • Long-standing, proven track record
  • Thorough training and equipment availability
  • Full BFA Member

· ComputerXplorers

  • Minimum Initial Investment: £29,500
  • USP: Computer education made easy
  • Age Group: 3-13
  • Comprehensive training
  • Consistent support
  • Extensive marketing
  • Associate BFA Member

· Tutor Doctor

  • Minimum Initial Investment: £29,700
  • USP: Exclusive, tailored private tutoring
  • Over 500 franchises in operation in 16 countries
  • 17,000+ tutors on board
  • Ongoing support

· Premier

  • Minimum Initial Investment: Starting from £14,950
  • USP: Sport and physical activity training
  • Popular with many primary schools across the UK
  • Extensive training and support
  • Full BFA Member

· Banana Moon

  • Minimum Initial Investment: £60,000
  • USP: State-of-the-art day nursery
  • In-house business and sales advisors
  • Thorough training
  • Ongoing support and marketing
  • Associate BFA Member

· The Creation Station

  • Minimum Initial Investment: £7,999 (excluding taxes)
  • USP: Award winning, unique and innovative art and crafts sessions
  • Ongoing operational and sales support
  • Comprehensive training
  • Associate BFA Member

* Fees & features mentioned on this page are merely indicative and subject to change.

The Takeaways

  • Understand how a children’s franchise is more than a mere business.
  • Know whether franchising is a good fit for you.
  • Conduct a detailed market analysis.
  • Talk to operational franchisees.

Related: Children Franchises – Search Franchise Reviews Directory

Go through our extensive franchising guides before you make a move.

Franchise finance specialist bought by Hitachi Capital UK

June 28, 2018

Hitachi Capital UK has swooped for a specialist financial services provider to the franchising industry which has completed more than 700 deals across the UK over the past five years.

Franchise Finance is based in High Wycombe and operates UK-wide with more than 140 franchisors and their franchisees.

It specialises in the hotel, leisure, business services, personal services (such as fitness and domiciliary care) and transport sectors. Over the last five years, the company has completed more than 700 deals, worth more than £32m.

The acquisition of Franchise Finance boosts Hitachi Capital UK’s lending base to SMEs and franchisees, and brings senior consultancy experience to the group.

The will also help the business to diversify its offering, by utilising Franchise Finance’s expertise in business planning and training within the SME marketplace, to create a new product offering amongst a wider UK audience.

Robert Gordon, chief executive of Hitachi Capital UK, said: “Franchise Finance Ltd is a natural fit for Hitachi Capital UK.  With a strong market share and a well-established business training offering, the deal provides a real opportunity to enhance our offering to both existing and new customers.

“This acquisition enables us to grow and diversify our business further, reaching new customers within a franchise market that is consistently providing growth opportunities. We’re excited to bring the team into the Hitachi Capital UK group and use their expertise to accelerate our growth within the SME market.”

Stuart Walsh, managing director of Franchise Finance, added: “Hitachi Capital UK is a highly respected company, with which we share a common culture of integrity and dedication to excellent customer service.

“This deal will enable Franchise Finance to grow the reach and value of the fantastic expertise we have in the franchise market, providing Hitachi Capital UK’s current and prospective customers with specialist knowledge and funding that could prove crucial to their business or franchise success.”

Hitachi Capital (UK) PLC has more than 1,200 employees, nearly £5bn of assets and about one million customers across its five business units; consumer finance, vehicle solutions, business finance, invoice finance and European vendor solutions.

Source: Insider Media

McDonald’s and Costa Coffee shortlisted for the British Franchise Association awards

June 28, 2018

McDonald’s and Costa Coffee are among the finalists involved in the annual British Franchise Association (bfa) HSBC Awards.

The HSBC Franchise Awards acknowledge franchisees who show ‘outstanding business acumen, innovation and achievement’, with the finals being held today (28 June) in Birmingham.

Global fast food chain McDonald’s and coffee chain Costa are both in the running for the same title, Franchisor of the Year, as well as three other companies. McDonald’s has franchised in the UK and Ireland for over 30 years, recruiting 20 new franchisees from over 650 applicants within three years.

The bfa notes that McDonald’s has a strong engagement with each of its franchisees, organising meetings to pinpoint its priorities, while Costa Coffee has been successful in growth and innovation.

Costa opened its 1,000th franchise-owned store with one of its first franchisee partners and has introduced online tools, brand standards, store design innovation and more to assist its partners.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Costa Coffee director of partnerships Jim Attwood said: “We are delighted to have been shortlisted for the bfa Franchisor of the Year Award, which recognises above all, the contribution all our franchise partners, who have helped to build one of the UK’s most successful consumer brands and franchise networks.”

McDonald’s has seen 48 quarters of growth in a row, with 85% of its new restaurants being franchised to its existing partners.

McDonald’s head of franchising and field services Abel Campos said: “We are honoured to be shortlisted for the bfa’s Franchisor of The Year Award. We take great pride in the close working relationships we have developed with our franchisees and are delighted to receive recognition for this approach.”

Shortlisted for the Brand Awareness category is Riverford Organic Farmers, an organic vegetable box scheme delivering 50,000 orders every week.

Andrew Brattesani, the UK head of franchising for award sponsor HSBC said: “Franchise businesses are often the hidden engine of business growth in the UK and it is essential to highlight the important contribution both large and small businesses make to our economy.

“It is also important to showcase to people that they can run their own businesses and if you don’t want to go it alone, or haven’t got a strong business idea of your own, you can still be successful and become your own boss.”

Source: Verdict Food Service

Government’s anti-business bias hurts UK economy: London finance chief

June 27, 2018

The British government’s hostile attitude toward business is damaging the economy and companies will move overseas if they continue to be unfairly attacked for warning about the dangers from Brexit, the City of London’s policy chief told Reuters.

The government’s already strained relations with business further soured over the weekend after a senior minister accused companies of issuing “completely inappropriate” threats to pull out of the country over Brexit.

A day earlier the foreign minister Boris Johnson was quoted by the Daily Telegraph newspaper dismissing business leaders’ concerns about the impact of Brexit and using foul language in a meeting with European Union diplomats.

Catherine McGuinness, the political leader of the City of London, the local government that administers Europe’s biggest financial center, said the government’s relationship with business is the worst since she started working in 1983.

She said the relations between business and politicians are even worse than when taxpayers were forced to spend more than 133 billion pounds ($176.65 billion) bailing out British banks at the height of the 2007-2009 global financial crisis.

“Some of the statements we’ve heard don’t encourage you to think that we are an economy that welcomes business,” McGuinness told Reuters in a restaurant near the Bank of England.

“Business is very frustrated that we are not making progress. Secondly there is a huge amount of uncertainty around, and thirdly, whenever they try to say anything, which they do with care, they are slapped down.”

The souring in relations comes at a critical moment in the Brexit process where many large companies are deciding what operations they may have to move to the continent to ensure they can continue trading with the EU.

A series of companies with major operations in Britain, including Airbus, Siemens and BMW, have voiced concerns about the impact of Britain’s departure from EU, saying a withdrawal without a deal would force them to reconsider their investments.

With only nine months left until Britain is due to leave the EU, little is yet clear about how trade will flow between the world’s fifth largest economy and its biggest trading bloc.

The business minister Greg Clark on Monday attempted to distance himself from some of his colleagues by saying any company and industry that brings jobs to Britain is entitled to be listened to.

McGuinness said she was concerned that time is running out to secure an agreement and the probability that Britain exits the EU without having agreed a divorce deal is increasing.

“You do get the feeling that the sand is running out of the hour glass rather quickly,” she said. “I feel there has been a lot of kicking cans down the road and we are coming up against the wall.”

McGuinness also said she was concerned that the government will end up agreeing a trade deal only for goods, without properly addressing services.

This would help solve the thorny issue of how to avoid a hard border on the island of Ireland that could rekindle sectarian violence in the region, but would leave financial and other services out in the cold even though they make up about 80 percent of Britain’s economic activity.

“I am worried that there is a possibility that they will put other parts of the economy above the big engine that the financial and related professional services represents,” she said.

McGuinness, who has traveled to China and the United States in the last year and will visit India soon, said Brexit has undermined Britain’s reputation as a predictable place to do business, forcing the country to prove its value to businesses in a way that it didn’t need to do before.

“They have seen Britain as a gateway to Europe and the pinnacle of success… I don’t think we look particularly stable anymore,” McGuinness said.

Source: UK Reuters

Encouraging Women into Franchising to celebrate its 10-year anniversary

June 27, 2018

This month marked the first Encouraging Women into Franchising (EWIF) regional meeting to take place in Wales, following the newly amalgamated South West and Wales region.

A not-for-profit organisation supporting women in the franchise industry, EWIF has an ever-expanding membership across the UK from SMEs to household names such as NatWest and McDonalds. EWIF provides support and guidance to women who may be considering buying a franchise or franchising their existing operations and helps to expand their network in the industry.

Established in 2008, EWIF is celebrating its 10-year anniversary this year. Celebrations will take the form of ‘EWIF Week’ which will take place in the Autumn and will involve a week of events across EWIF’s seven regions.

In 2017, the South West region was expanded to incorporate Wales. Stephen Thompson, British Franchise Association affiliate and Managing Partner at Cardiff-based commercial law firm Darwin Gray is the first to chair the newly amalgamated region. Stephen also heads the Corporate and Commercial team at Darwin Gray as well as the specialist Franchising team.

I am pleased to be the chair of the recently consolidated EWIF South West and Wales Region, to help grow the presence of EWIF in Wales and build on the excellent work that is being done for franchisors and franchisees across the region.

 Stephen ThompsonBritish Franchise Association affiliate

June 2018 marked the first regional meeting to take place in Wales, with Darwin Gray hosting in their boardroom surrounded by stunning views of the Welsh capital city. The event hosted speakers Kate Methuen-Ley and Helen Corsi-Cadmore from Danish design store Flying Tiger Copenhagen, who spoke about their journey of successfully setting up and growing their joint-venture partnership with a number of stores located across South Wales and Bristol.

Related: Women In Franchising : The Rise And Rise Of Female Franchisees

Newport-based EWIF member Helen Gillies, who runs successful franchise Tots Play, said:

I have been a member of EWIF for a number of years and have found it to be a fantastic source of support both on a personal level as a franchisor, and for those either already involved in franchising or considering venturing into it. I have previously always had to travel over the border for EWIF meetings so it is fantastic that these are now being held in Wales too, and we had a very interesting and informative meeting this month. 

“I hope having opportunities like this to gain more understanding of the franchise sector will encourage more Welsh businesses to consider franchising as a way to grow and develop their business, and more women in Wales to take up the opportunities that this will provide. I look forward to continuing to support EWIF in its work and hope more to encourage others in Wales to do the same.”

As part of EWIF’s 10-year celebrations, the South West and Wales region is organising an event at Cardiff Business School to encourage students into the franchising industry.

Source: Wales247

YourZone45 secures trio of investors as it looks to grow its franchised footprint

June 26, 2018

Boutique fitness franchise YourZone45 has secured investment and executive support from fitness industry specialists Mhairi FitzPatrick, Andy Kay and Jeremy Taylor.

The three new stakeholders will be working alongside YourZone45 founder, Chris Elms, to “develop the product and accelerate growth” throughout the UK and overseas.

Related: Fitness Franchises – Should You Buy a UK Fitness Franchise?

Taylor was a co-founder of the LA Fitness group in 1994 and spent 11 years as its group operations director as the company grew to an estate of 65 health clubs.

After exiting LA Fitness, he acquired equity and took an executive role in The Health Club Collection, a privately owned business operating six individual clubs throughout London.

Kay and FitzPatrick have worked in partnership for more than twenty years, having launched, operated and sold businesses – including the venture capital-backed, premium health club operator 37° Health and Fitness. The two 37° clubs were sold in 2015-16.

Related: YourZone45 secures equity stake investment

“YourZone45 provides an exciting and affordable opportunity for people with the drive, ambition and commitment to succeed on their own – but who want to minimise their risk as a fitness entrepreneur by following a proven model and blueprint to operate their business,” said Jeremy Taylor.

There are currently four YourZone45 franchises operating in the UK, with two more set to open by October 2018.

The YourZone45 model is based on delivering an instructor-led, “body-changing” 45-minute workouts. Using heart-rate technology, the workouts are designed to burn the maximum amount of calories, build strength, increase energy, surpass workout plateaus, tone and shape the body.

Source: Leisure Opportunities

Revealed: The five international food franchises set to take the UK by storm

June 26, 2018

The next big food franchises will come out of Latin America, experts have claimed, with a number of chains eyeing up global dominance in the next few years.

Peruvian sanguches, completos and plátano mixto have been tipped as some of the foods that are likely to disrupt the fast food scene across the world.

Hispanic takes on hot dogs and doughnuts have also been cited as potential disrupter franchises.

Western franchises have dominated the fast food sector across the world up to now, with McDonald’s, Burger King and Subway among the biggest companies in the world.

Krispy Kreme was launched this century and now has over 400 sites across the US, with the doughnuts also widely supplied in garages and convenience stores around the world.

But recent research published in the International Business Review suggests the global franchise picture is changing.

The research focused on the huge expansion of Brazilian food franchises as well as others in Latin America.

And according to Leonardo González Dellán, the fast food scene is ripe for expansion.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

He said: “The bottom line is that franchises that originate in emerging markets are doing better in other emerging markets than ones that originate in more economically developed countries (MEDCs).

Venezuelan chain Churromania (Image: Trip Advisor)

“This is because these businesses do not see high levels of corruption or inefficiencies in doing business as unacceptable obstacles to opening up.

“Indeed, the evidence suggests that Brazilian franchise chains, in food and other sectors, do not see corruption as necessarily inhibiting their ability to do business in emerging markets and the least developed countries in Latin America.

“In short, they are better able to deal with problems around contracts, complex or contradictory regulations and political instability.

Peruvian chain Pasquale Hnos (Image: Facebook)

“More generally, emerging market multinationals (MNEs) are more prevalent in less developed countries compared with traditional MNEs – they turn their own experience into a competitive advantage.

“With these business experiences behind the teams who have made a success in the Latin America look set to take the world by surprise”.

Doggis are as big as McDonald’s in Peru and other Latin American (Image: Instagram/doggis)

There are a number of key chains that are growing and look set to rapidly expand across Latin America and ultimately the world.

They represent the first sustained challenge to come out of the emerging economies to long dominant US food franchises.

Some of these chains are not yet in a franchise model but their competitive advantage and the pressing need for a reinvention of the Latin American food sector, will propel forward.

Five Food Franchises to watch

Baleadas Express

Honduras – served on flour tortillas, quick, fresh and very well regarded locally and in 100 restaurants across the country. They also serve hot dogs, plátano mixto, and enchiladas and are ripe for expansion.

Churromania

This Venezuelan company opened in 1997 in Puerto La Cruz and has a foot hold in the US in Florida and Texa. It will be the next big thing in doughnuts.

The Californian Burrito Company

This company was founded in Buenos Aires in 2006 and has spread its operations across the region with openings in Argentina, Colombia, Bolivia, Ecuador, and Uruguay joining its four other stores in Brazil.

Pasquale Hnos

Founded by the most famous Peruvian chef Gastón Acurio, these five joint sells primarily Peruvian sanguches, chicha morada and Peruvian desserts.

Doggis

Quick service hot dogs that are as big as McDonald’s in Peru and other Latin American countries, know as “completos” – topped with a guacamole-like paste made with avocado and mayonnaise. Set for world domination.

Source: Mirror

Property investment platform marks 25th franchise across the UK

June 25, 2018

Sourced, which describes itself as the largest property investment platform in the UK, has secured its 25th franchise some 10 months after the company was launched.

It now says it’s on track to secure a total of 35 franchises by the end of this year and wants an additional 30 by the end of 2019.

Sourced offers UK-wide investment advice and property sourcing through a network of franchises: the newest franchise locations are South East London, Bournemouth, South Liverpool, South Manchester and Bradford.

Related: Property investment venture announces 25th franchise

Sourced was set up by directors Stephen Moss, Ryan Brown and Paul Rose and employs eight people at its head office in Widnes.

Franchise offices can be found in Liverpool, Edinburgh, Manchester, Wigan, Bolton, North London, Newcastle, Leicester, Leeds, Birmingham, Reading, West London, South East London, Warrington, Sunderland, Salford, Preston, Nottingham, Huddersfield, Bournemouth, South Liverpool, South Manchester and Bradford.

“The franchise model is delivering real growth. It presents an attractive and alternative route into a career in property which enables us to offer UK-wide coverage and intelligence to match investors with the right opportunities – whether that’s investing in growth locations to boost a pension pot or delivering high yields to provide monthly income” according to Stephen Moss, one of the managing directors.

“We’re offering an end-to-end approach – providing guidance and tutelage for investors whether they’re novices or professionals, to matching them with suitable properties, encouraging them to search our 150,000 property database and facilitating peer-to-peer lending opportunities.”

Source: Letting Agent Today