How To Franchise Your Business - asset.zeqr.com€¦ · How To Franchise Your Business Grow Your...

How To Franchise

Your Business Grow Your Business Using Other

Peoples Time And Money

Lisa Newton

Lisa Newton

2

First published in 2016 by Booglez Ltd

3rd floor Fitzroy House, Abbot Street, Dalston

London E8 3DP, United Kingdom

Tel: 0844 8844 622. Fax: 08712 449 500

Email : [email protected]

Web : www.Booglez.com

Lisa Newton has asserted her right to be identified as the author of this work in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of the work may be reproduced or stored in an information retrieval system (other than for purposes of review), or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the express permission of the publisher in writing. ISBN‐13: 978‐1539779087

First edition 2016

Printed and bound by Amazon Creates

NOTE: The material contained in this book is set out in good faith for general guidance and

no liability can be accepted for loss or expense incurred as a result of relying in particular

circumstances on statements made in this book. Laws and regulations are complex and

liable to change, and readers should check the current positions with the relevant

authorities in their country of origin before making personal arrangements.

This book is available online and at all good bookstores.

© Copyright 2016 Lisa Newton

How To Franchise Your Business

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Introduction

It would seem that franchising has gained popularity for

various reasons. There is comfort for both the consumer in

using a familiar and well known established household

name brand (trust, credibility, loyalty); and for the

franchisee who runs that business there is comfort in having

the support of a well known brand to back you, having the

training needed to make the business a success and having a

far better survival and success rate than if you merely set

out to do everything yourself from scratch.

Having franchised my own service based business, I was

often asked by business owners ‘How do you do it?’ ‘What

do I need to do?’ ‘What steps do I need to take?’ ‘How did

you do it?’ ‘Was it quick?’ ‘Is it easy?’ and these are all the

questions I will answer in this book. This book is written

especially for the service based business owner who is

thinking of using the franchising model as a vehicle for

expansion. It’s not written especially for the franchisee who

is thinking of buying into a franchise – (although we will

look at the type of things that a franchisee should look out

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for when considering whether or not to invest into a

franchise) – see Chapter 10.

Make no mistake – this isn’t a ‘get rich quick’ way to expand

your business. Nor is it recommended for every business.

That said, from when I saw a Dog Walking Franchise going

for around £10,000 … I just knew that anything is possible in

this world! People will buy anything! But, that’s not to say

that one should just sell “anything”. Remember that a

franchisee‐franchisor relationship isn’t just a one‐off

transaction. It is expected to be an ongoing business

partnership of co‐dependence for a minimum of five years.

So anyone who thinks ‘I’ll just take the money and run’ will

not last very long in this game.

Franchisees may well be investing their hard earned life

savings into your business. It is your duty that they get to

see a return on that investment. It is for this reason, that

franchising shouldn’t be entered into lightly. One really

should test the water first. You could be open to potential

litigious claims if you don’t deliver upon your promise. This

has happened to franchisors before, so one should tread

with care.


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We all know that if YOU are an entrepreneur, the chances

are you are amazing, full of boundless energy, fearless, hard

working, creative, good at what you do… and you’ve

managed to make a success of the business that you are in.

Now, think carefully. Think about the skills, attitudes and

aptitudes needed to run a business like yours profitably…

and then ask yourself if ‘anyone’ could do it? Could you, for

example, train me (lets pretend I’m a willing guinea pig and I

want to run a business like yours) – could you train me in

how to do it? How long would this training take? 10 months?

10 weeks? 10 days? 10 hours? What would you need to

show me? What knowledge would I need to have upon

starting (if any?)

Franchising is all about making your business so SIMPLE

that you can get anyone, Joe Blogs, Mary Jane, literally

anyone to run that business successfully with some training

and some ongoing support. You have to remember that its

your brand name, reputation and creditability that will live

on through your franchisees … you’ll need to be able to

select and identify potentially capable people and be able to

train them quickly, so that they can be up and running. Is

this possible in your type of business? We will explore this

and other factors to consider. There’ll be lots of checklists in

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this book. Be making notes as you go along, because if you

are serious about franchising your business, the first thing

you have to be aware of is that this now becomes a second

business.

The business of franchising your business is a business in

itself. It’s a whole new business development format

overlaid onto your existing business and operationally

integrated into it. The franchised business is a different

culture. It performs differently. It’s main function will be

recruitment and support – which will be different from your

existing business. So your franchise business will need

resources, time and energy – just like in your primary

business (which I hope you will still be running). We call

these ‘company‐owned units’. It’s good to still run a

company‐owned unit as it can be used to test ideas on

before you roll it out across the network.

What we’ll cover in this book includes who to look for when

you are franchising your business (I’ve touched on it slightly

already). It is literally like a job interview and selection

process. If you’ve had previous experience of recruitment,

then you’ll know exactly what to expect… Normally a lot of

largely unsuitable applicants and a lot of time wasters!


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Ask yourself (and be honest) ‐ do you have the time to spare

to sift through unsuitable candidates? Franchising can be a

very time consuming process. You can employ someone to

help you at this stage, but there will be a lot of ground work

that you’ll have to cover yourself, because, quite frankly …

no‐one knows your business, and what it takes to run it,

quite like you! All details and aspects of how to run the

business will need to be documented (this will be your

operations manual), and you can then use this as the basis

upon which to create the training programme. All of this

takes time, effort and energy.

In this book, we’ll look at what franchising is, and what you

hope to achieve by doing it, as well as alternatives to

franchising. It isn’t the be‐all and end‐all. There are other

alternatives – depending on your objectives, timescales and

business type. We will look at whether your business is

ready for franchising, the financial aspects of franchising, the

operations manual (what goes into it, how it should be

written) and marketing the franchise. As stated previously –

this is a whole new business. Not only will you have to

continue to market, sell and promote your company owned

unit, but you’ll also have to market and sell the franchise.

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Franchising is an entire industry all by itself. There are

franchise shows and exhibitions to attend, franchise

organisations to join and then there’ll be sales people who

crawl out of the woodwork offering to do everything for you

– for a fee, of course. Your existing business will need to be

strong enough to meet all of these extra costs. But that said,

you don’t want to muddy the waters. Having a new business

structure which is entirely separate from the existing

business unit is useful, to keep (and protect) the initial

business from the franchise business. More about this later.

The legal contracts between you and your franchisees are

very important as in the event of any dispute … it’s the first

thing that both parties will refer to. Normally, an agreement

is going to be written in favour of the franchisor, but this

means very little in a court of law as one can always argue

about fairness of contracts. You have to look at your

obligations according to the contract and ensure that you’ve

met them. There is a template legal contact included in the

appendix worth at least £3,500. It is recommended that you

seek professional advice for your own individual business.

Don’t try and copy and paste from what is on the internet!

There are good franchise solicitors out there – but I hope

you can see already how these costs are mounting up? You


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may need to sell 4 or 5 franchises before you even break

even! But again, this is something that we’ll cover in the

financials section. I don’t want this book to put you off the

idea, but I want you embark upon this decision with your

eyes fully wide open as to what you can expect along the

way. Literally everything has happened to me, or to

someone I know, so I’ll be using their stories to illustrate

points and potential land mines to avoid as we go along.

Franchising (when it goes right) no doubt is very rewarding.

Just look at McDonalds, StarBucks, KFC, Pizza Hut, SubWay

which are brands with global dominance. I know I’ve eaten

in them in Europe, Asia, America, the Caribbean – and

they’ve all been consistently to standard. I knew what to

expect, and they have delivered each and every time.

However, be aware that these are food outlets. And this

book is aimed more for the business owner of a non‐food

type business who is looking at how they could franchise

their (service based) business.

When I first wanted to franchise my business I looked into it,

and I looked for someone who could help me. A coach, a

guide, a mentor. Someone who could show me the ropes.

The first quote was £8,500 (I was encouraged to just go and

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get a loan out for it), the second quote was £15,000 (and

they assured me that they’d literally take care of everything

and could even arrange the financing), and the third quote

was around £10,000, and fourth was around £3,000, but

probably because I’d done the majority of it already, and

they would literally just be checking over and plugging in

the gaps that I’d missed.

Treat this book as the £15,000 “advice” that you didn’t have

to pay for. The aim is to ensure that you fully consider what

it takes to franchise your business, and if you do choose to

go ahead, then you do so with your eyes fully open.

Alternatively, you may decide that this isn’t the best course

of action for your business… but there may be alternative

routes to expansion, and we’ll discuss what these are in the

book.

The purpose of this book is to give you a full insight into

what you have to do, what you can expect and things to

think about before you dive into franchising. Is this book

‘everything that you need’ to franchise your business?

Unlikely. But it will help you to decide (if you are serious), if

franchising could be a possible route forward for you.


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Take a look at the franchising roadmap in the appendix

which will help to give you an overview of the necessary

components needed to franchise your business, with

possible timescales and costs. You can use this to create a

franchise action plan and to make it happen, however I must

just advise a word of caution. Unless you have previous

franchising experience, remember that you are venturing

into a new area of business. Franchising your business is not

just a matter of reading a few books and attending some

seminars… there is a lot that goes into it.

I believe that committing to some sort of paid‐for consulting

/ mentoring / guidance would still be a good idea. A

consultant can provide the objective view and the

experience that may be missing. They can work alongside

you through critical stages and provide on‐going practical

support which can help a lot. That said, although I would

advocate getting in expert help, I do believe that this book

can save you a lot of time and money. If you read through it

carefully, and apply what I tells you, you may well find that

the “cost” of franchising your business (in terms of

franchising consultancy fees) reduces dramatically by

maybe up to 70‐80% because you have been able to help

yourself to a large extent.

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Good luck with whatever path you choose to pursue. You can

follow me on Twitter @lisa_newton1 or you can contact me

by email on [email protected]

To your success!!

Lisa Newton

Author, London, UK

mailto:[email protected]


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Contents Page Introduction...............................................................................3 Contents Page......................................................................... 13 1 What is Franchising? ........................................................ 17 Copy and Paste....................................................................................18

2 What Are The Alternatives To Franchising?............ 19 MLM.........................................................................................................19 Licensing................................................................................................25

3 The Benefits of Franchising Your Business.............. 27 Consistency ..........................................................................................28 Processes...............................................................................................29 Automation...........................................................................................30 Costs ........................................................................................................31 Improvement – Adds Value...........................................................32 Monetize Your Winning Formula ...............................................32 Enjoy Additional Income................................................................33 Expand Into New Markets .............................................................33 Reduce Costs........................................................................................34 Less Capital Required ......................................................................35 Shared Risk...........................................................................................35 Dominate Your Market....................................................................36

4 Why Would Anyone Want To Buy Your Business Anyway? ................................................................................... 37 Earning a Decent Living?................................................................37 Activities................................................................................................39 What is your USP? .............................................................................40 A lifestyle choice – Buy Your Job.................................................41

5 Pilot Operations................................................................. 42 Prove it!..................................................................................................42 The Steps ...............................................................................................44

6 Operations Manual ........................................................... 45 The Purpose .........................................................................................46 Training & Scaling .............................................................................46

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What should be included?..............................................................48 Example pages to include...............................................................49 How..........................................................................................................52 Consistency ..........................................................................................53 Format ....................................................................................................54

7 Financials – Show Me The Money!............................... 56 Financial Modelling ..........................................................................56 Franchisor.............................................................................................57 Research ................................................................................................58 Franchise fees......................................................................................59 Source of income................................................................................60 Ongoing Franchise fees ...................................................................61 Reporting ..............................................................................................63

8 Marketing The Franchise................................................ 66 Sell the Benefits ..................................................................................66 Location based (premises) ............................................................67 Territories.............................................................................................68 Marketing the package ....................................................................68 The Steps ...............................................................................................69 Be wary of established businesses.............................................74 Is the franchisee suitable? .............................................................75

9 Selecting Your Franchisees............................................ 77 You’ll get better with experience! ..............................................77 Termination .........................................................................................78 Ideal profile ..........................................................................................79 Ideally .....................................................................................................79 To summarise......................................................................................80

10 What Should The Franchisee Look For? ................. 81 11 The Franchise Contract................................................. 83 Franchisor owns….............................................................................84 What is the franchisee getting? ...................................................84 The contract itself..............................................................................84

12 Pilot Operations (part 2).............................................. 85 Charges...................................................................................................86 Working ON the business...............................................................88 Franchise Management Systems.................................................89


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Operations Manual.......................................................................89 Information Library.....................................................................90 Company News ..............................................................................90 Franchisee forum..........................................................................90 Events ................................................................................................91 Printed Materials ..........................................................................91 E‐Learning .......................................................................................92 Results ...............................................................................................93 Keeping Track (For Managers)...............................................93

13 The Franchisors Organisation.................................... 94 It needs infrastructure ....................................................................94 Example of an organizational structure..............................96 Example of a Job Description for: Franchise Area Recruitment Manager .................................................................96 Example of a Job Description for: Franchise Operations Manager ............................................................................................99 Example of a Person Specification for: Franchise Manager .........................................................................................101

Costs of the organization.............................................................102 Supervision – Financials..............................................................102 Supervision – Operations............................................................104 Marketing the product/service ................................................106 Operations .........................................................................................107

14 The Franchisor / Franchisee Relationship ..........109 Best analogy – parent / child.....................................................109 Evolving nature ...............................................................................110 Issues ...................................................................................................113 Royalty fee – resentment........................................................113 Time – they (think) they know more than you.............114 Complacency – they get lazy .................................................115 Competent experienced franchisees .................................116

Take care ............................................................................................117 15 Final Thoughts ...............................................................119 How to franchise your business...............................................119 Legal and Intellectual Property Issues ..................................121

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APPENDICES..........................................................................125 Appendix 1 – Financial Modelling Franchisor ..........125 Initial Set up costs ..........................................................................125 Calculating Ongoing Royalties – from franchisor perspective ........................................................................................130 Calculating Ongoing Royalties – from franchisee perspective ........................................................................................132 Things to Think About..................................................................133

Appendix 2 – Financial Modelling Franchisee..........136 Estimate of Costs to establish & run your franchise .......136 Example – Bookkeeping franchise .....................................137 Establishing Costs may / may not include:.....................138 Ongoing Running Costs may / may not include:..........138

Income Potential Scenarios........................................................138 Assumptions: ...............................................................................139

Earnings Potential..........................................................................141 Appendix 3 – Franchise Contract...................................146 Appendix 4 – Franchising Road Map............................175 Appendix 5 – Expression of Interest Form.................178 Appendix 6 – NonDisclosure Agreement...................181 INDEX ......................................................................................189 ABOUT THE AUTHOR.........................................................192 ABOUT THE ILLUSTRATOR..............................................193 OTHER BOOKS BY THE AUTHOR ...................................194

How To Start Your Own Bookkeeping Business ..........195 Constant Cashflow.....................................................................195 Make The Most of Your Money ............................................196 Cosmic Ordering With Vision Boards ...............................196 Think And Grow Rich by Napoleon Hill ...........................197 How To Write A Book In Two Weeks (or Less)............197


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1 What is Franchising?

Franchising is a process whereby a person or company (the

franchisor) grants to a third party (the franchisee) the right

to use their trademark and conduct a business under the

trade name and in exchange, the franchisor provides

training and ongoing support and the franchisee pays a

royalty of fees generated.

Franchising is a business strategy that is used to capture

market share. A company can grow just using franchising as

a vehicle, or it can use company owned units or a

combination of them both. Both strategies have their pros

and cons which we’ll explore further in a later chapter.

To rephrase, franchising is a network of interdependent

business relationships that allows a number of people to

share:

• A common trademark / brand

• A successful method of doing business

• A proven system of marketing and distribution

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Franchising is a dynamic working relationship with

independent third parties. The franchisees agree to invest

their own money and time, they subscribe to the standards

and ethics of the business and they agree to work under a

unified banner to prescribed systems and standards. They

have a vested interest in the business, which helps the

franchisor to grow the overall brand and network thus

increasing value and benefiting all parties concerned.

In short, franchising is a strategic alliance between groups of

people who have specific relationships and responsibilities

with a common goal to dominate markets, i.e., to get and

keep more customers than their competitors.

Copy and Paste

Franchising is tool for strategic growth which can be

suitable for all types and sizes of business – especially the

smaller enterprise aspiring to greater things. The aim is to

duplicate and then replicate (copy and paste) your

successful business format over and over again, with each

unit being run by someone who has paid to join you.


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2

What Are The Alternatives To

Franchising?

Let’s assume that you are a business owner, and you want to

grow your business. ‘Franchising’ is one option. But there

are others. You could open more company‐owned outlets,

but (as you know) this is a more expensive process. You’ll

have to fund it entirely by yourself (via loans, via net profits

etc.,) you’ll have to find the staff for those outlets, as well as

supervise them from a distance (if the outlet isn’t on your

doorstep).

MLM

Alternatively, if we’re interested in using other people’s

money (OPM) to grow our business and ‘get it out there’ we

could use a Network Marketing / Multi‐Level Marketing

(MLM) model. This is whereby we recruit ‘distributors’ who

then market and sell our products and services on our

behalf. Often, these distributors will be home based as this is

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one of the attractions of joining an MLM system. Network

Marketing has been referred to as ‘the poor mans franchise’

because the joining fee is often lower. Usually because it’s

literally a product or service that you’re selling and the

distributors themselves don’t have to provide the service so

they don’t need a shop or premises so it’s much more cost

effective. In a nutshell, distributors are paid commissions on

the sales they generate for the company. In addition there

are often incentive schemes and bonus packages. And the

distributor (also known as an IBO – Independent Business

Owner) can ‘recruit’ others into the network and show them

what to do, and gain a percentage of their teams sales efforts

and so on.

MLM has been given a lot of negative press, and often this is

because most people just don’t really understand what it

really is. MLM is simply an opportunity (normally for the

individual who has absolutely no business experience or

much capital), to get involved with marketing and selling a

product / service for their own capital gain. Unfortunately,

many MLM company ‘training’ programmes recommend

new distributors to make a list of ‘100 people you know’ (i.e.

friends and family) and to approach them with the business

opportunity. No other business (when you think about it)


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recommends that you ‘sell’ to your ‘friends and family’…

instead, a ‘normal’ business sells to those customers who

have expressed an actual interest in actually buying your

product / service. And this could be where MLM gets its bad

reputation. If you’ve ever had a friend or family member join

one of these businesses and then try to get you to a

meeting… then you’ll know what I mean when I say this.

The other downside is that MLM is often confused with

‘pyramid selling’. And make no doubt about it – pyramid

selling (in the UK) is illegal. A pyramid, is whereby you (the

distributor) get paid for ‘recruiting’ someone into the

network… and not for the sale of a product / service. In the

end these ‘pyramid schemes’ get a bad reputation for being

‘get rich quick’ – whereby ‘those at the top’ make all the

money and promises of riches don’t materialise. If

‘recruiting’ becomes more lucrative than actually selling the

product/service, then it just becomes a feeding frenzy

whereby people run around trying to get ‘sign ups’ and yet

no‐one is actually selling or using a product or service.

Signing people up can then become the companies many

source of income, and eventually the whole thing will

collapse and implode because no‐one is actually using the

products / services. Perhaps there isn’t a market for the

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products/ services, or they’re too expensive or no good …

but the company should be selling its products / services,

and not ‘distributorships’ .

The truth of the matter is, it doesn’t and shouldn’t matter at

what stage you join a MLM company. Everyone starts at the

same point – which is at the beginning with no customers

and no team members. Your role is to promote the products

and or services to your network. Your network could consist

of ‘family and friends’ I.e. people that you ‘know’ or you

could market the product/service effectively to try and

target those who have an expressed interest.

So, an example of a service‐based MLM is here:

www.WorkPartTimeFromHome.co.uk ‐ It’s a UK opportunity

for people to promote energy and telephony services – and

thus be paid on every customer who signs up to use one of

the five services on offer (mobile, landline, internet, gas or

electric). It’s a FTSE 250 company and it’s over 15 years old

at the time of writing. This is a prime example of a business

that has successfully used network marketing to grow. It

could have trained and recruited a sales force and spent

(literally) hundred of millions of pounds on advertising on

TV and radio etc., but it’s strategy was that this business was

http://www.workparttimefromhome.co.uk/


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best spread using a word of mouth technique / principle.

Your distributors (arguably) are far more motivated than

any employee will ever be. And you pay your distributors

ON RESULTS. A result is when a customer signs up for a

service, whereas in a ‘traditional’ business setting with an

employee/employer – you pay your sales force just for

turning up and clocking in ‐ (regardless of how effective they

actually are). The company deal with providing the service,

they handle all the billing and any technical support issues…

the distributors simply sign the customers up.

If you’ve not noticed already – this is the way in which the

world is going. Zero hour contracts are one such example.

Companies are no longer paying people to sit around, but

only for the hours that they actually do. This is great for the

companies, but not so good for the employees. The western

world (generally) has been in an ongoing stagnant type of

recession/depression since 2008 whereby wages haven’t

been rising along with the cost of living, so there are more

and more people out there who need to make a little extra

money on the side, and joining a MLM network is a perfect

opportunity for them.

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Could your business benefit from having a workforce of

distributors selling your product / service? You’d only pay

them when a sale was made. There’d be no sick pay. No

holiday pay. No excuses. All IBOs are independent, self

motivated because they see being part of your network very

much as their business. Could you benefit from such a

system? Could you MLM your business? Would it be

suitable?

And note, it’s not just service‐businesses that are MLM’d.

Very often its product‐based businesses… it could be health

/ beauty based products. For example hair products

(www.MyFlowIndustry.co.uk) or vitamin supplement

products (www.Rethink.Juiceplus.co.uk) or weight‐loss

products (www.TotalLifeChanges.com/SkinnyDiva)

Often if a product has health benefits and is revolutionary,

then word of mouth communication is the way forward to

‘get it into the marketplace’. The big difference with a

‘franchise’ (which is often territory‐based), and ‘network

marketing’ is that everyone on your street could be a

distributor for a MLM company. Often, there are no

territorial boundaries which can be a good and bad thing.

You don’t want two distributors clashing and fighting over

http://www.myflowindustry.co.uk/

http://www.rethink.juiceplus.co.uk/

http://www.totallifechanges.com/SkinnyDiva


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customers, but this doesn’t often happen because the market

potential for MLM products are often geographically

unlimited, so there is plenty of room for everyone to

operate.

Another option, if you want to grow your business without

having to pay staff… (and with them paying you for the

benefit), is to use licensing as an option.

Licensing

Licensing is whereby you (licensor) grant a license

agreement to the other party (the licensee) to use your

trademarks and brand name. There are similarities with

franchising, but the biggest difference is often a franchise is

territory based, and a license agreement might not be. You

could ‘grant a license’ to 50 games manufacturers to feature

your character on their platform. They may pay you a one‐

off fee (or an annual or monthly fee) for the privilege, but

you may not directly share in the sales proceeds generated.

They (the licensee) keep all of that. But at least you get

something for being the owner/creator of something.

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With licensing, often there is no ‘training’ to be given. You

are just granting someone the right / permission to use

something of yours. The value is in your creation. It could

be a secret recipe. It could be a trade mark or well know

brand name. Or (very commonly) a character brand license

is when you allow another party to use your image to sell a

product. For example, ‘Winnie The Pooh’ is put on a bag .

The bag seller pays for the right to use the image, and (no

doubt) sells more bags, and can sell the same bag for a

higher price, just because the Pooh Bear image is being used.

Think of Disney and how their characters sell anything from

cereal to T‐shirts to bed covers to colouring books etc.,

If your business / idea lends itself to something that people

would like to use… perhaps licensing may be an easier way,

than franchising.

At this point, it is useful to be very clear in your mind, in

what you are intending to sell. Complete this sentence: I am

selling: _____________________________________________________ e.g. A complete home/office cleaning system – products, service and

marketing plan.


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3

The Benefits of Franchising Your

Business

The main benefit of franchising your business is that (if

nothing else) it will force you to analyze every aspect of your

business. It will make you document every process and this

is something that every good business should do anyway.

Franchising will make you think about your business from a

3rd party perspective. It will make you think about how you

run your business and what can be done to make it better,

simpler, faster. And once the process is complete, to call

yourself a ‘franchised business’ will make your business

appear much larger than it might actually be in its present

state.

But the whole process is not a quick one. It can take 1‐2

years to franchise your business (minimum). There’ll be a

lot of preparatory work that you’ll have to do and it all costs

money and takes time. You may realize that some parts of

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your business don’t work as well as you first thought, so you

may have to rethink a few things.

Consistency

And if your business seems to depend heavily on you – you’ll

also realize this too, because any franchisee who buys into

your business concept isn’t ‘you’. And they’re never going to

be like you, so you may need to rethink how certain things

are done because someone else is going to have to do it…

and get the same result as you’ve been getting. Think

about that carefully for a moment. Are the skills needed to

run your business transferable? Is your business ‘ready’ to

be franchised? Right now, in its present state, could you step

away from the business and have it function properly and

profitably without your input? If so, then you are on the

right lines.

Franchising your business means that you’ll have to

document how to run your business. And even if, it never

gets to the completed franchise stage, you’ll still have done a

very valuable process. You’ll have the handbook on ‘how to

run the business’ in your absence. So if you are ever ill, or if

you want to sell the business, or even if you decided to write


29

a book instead, on ‘how to start and run an XXX business’ –

you’ll have your material there, because you would’ve taken

the time to document it. So none of this energy ever goes to

waste!

Processes

When I had to go through this process, the biggest benefit I

found was realizing that not every process that I had initially

set up was being followed by the staff. It also made me

literally ‘go back to basics’ and I realised what had made the

business a success in the first place – and that we weren’t

doing all of those things like before. So there were some

adjustments to make. We streamlined some processes, and

reduced duplication. So overall, the business became more

efficient in the end.

If you are always having to repeat yourself, then maybe the

task in hand hasn’t been documented effectively. The benefit

of franchising your business – or going through the process

– is that these things soon become apparent. For example, if

staff always refer to you to do a quote – then you need some

sort of pricing strategy / plan in place, which anyone can

refer to, so that their quote would always equal yours. You

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30

can’t have information in your head. That is no good. Maybe

you’ve been good at documenting things? Or maybe not?

Maybe people follow your ‘rules’ or maybe they have made

up their own? But the franchising process will soon make

you realise where there are potential gaps in service levels

and room for improvement.

Automation

This process may help you to automate certain processes, so

that it never has to ‘rely’ on anyone’s memory again. This

saves time, and it just makes the business more effective. An

example of an automated process could be a weekly profit

and loss report. Certain online accounting systems can do

this for you. And as you go through the motions of

franchising, you may realise that some systems will need to

be upgraded to be able to handle a larger volume. Perhaps

the existing process is OK for one company‐owned unit, but

if you have expansion plans then another system will be

better. This new system will then have to be installed, your

current staff will need to be trained on it, and then you’ll

have to document the new regime into the operations

manual.


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Costs

Now there are two ways you can franchise your business…

‘on the cheap’ and ‘expensively’ and I’ll explain both. If you

follow what this book outlines – then you can save yourself a

lot of money. You can always get a consultant to advise you –

in my journey I spoke to four different ones whose fees

ranged from £3,000 to £15,000.

Maybe you have these funds, maybe not. But the annoying

thing I found with ‘consultants’ is that basically, they still

came to you for the answers. So, my thinking was, well if I

have to do all this myself, what would be the point in paying

you ‘£8,000’? They may promise you a ‘business in a box

template’ – but one size simply does not fit all, and you’ll still

have to tweak it to suit your business. Where are you getting

the funds for this franchise programme? From the existing

business? Can it handle the extra costs?

Your existing staff may have to contribute to documenting

processes. Can they handle the extra workload? Are they

willing to get behind the franchise idea? Some staff may try

and jeopardise your efforts – so just beware of who is with

the franchise agenda and what needs to be done.

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Improvement – Adds Value

It’s certainly an eye‐opening process, the end of which I

think the business can only be in a stronger position due to

the amount of analysis and work involved. So, go ahead,

follow the steps in this book, and EVEN IF you don’t go

ahead with the franchise, believe me, your business will be

greatly improved and will run far better, and hopefully

without very much input from you, which will leave you

with more time on your hands. You can then take this time

to either franchise, rinse and repeat (open another company

owned outlet), or even turn your attention to another

business to run.

Monetize Your Winning Formula

You may even enjoy the process so much that you start to

give talks, or make a course, or write a book on how to run

your type of business (just like I did). Once you really look

into the system as to how your type of business runs

successfully, you really will have found a winning formula.

It’s then completely up to you as to how you then share and

monetise it. You can capitalise on the value of your business

name and know‐how. Remember that there is someone ‘out


33

there’ who wants to know what you know. They want to do

what you do. If you can show (and prove) that you have

successfully ran your type of business, someone will pay for

that knowledge. So crystallising the system, setting it out so

that it can be taught and someone else can follow it is

NEVER a waste of time! It is energy well spent. I will

highlight this over and over again. You are not franchising

your business (or documenting your system) for ‘the money’

but for efficiency, and for the future opportunities that

having an efficient business system brings.

Enjoy Additional Income

That said, let’s talk about the money! Undoubtedly, when

you franchise your business successfully you can certainly

benefit from the additional income that it can bring. This

income is in the form of the initial franchise fee paid by the

franchisee for the right to a territory, the ongoing royalty

fee, the on‐going marketing fee (if appropriate) and the

mark up on the sale of products.

Expand Into New Markets

If you have your sights set on new markets – whether it’s at

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34

home or abroad, franchising can offer you an opportunity to

grow with minimal risk. Remember the subtitle of this book

is ‘how to grow your business with other people’s time and

money’. The franchisee can bring local knowledge and

experience (market penetration) whilst you provide the

know‐how to open and run units and the on‐going support

to keep the business ahead of the pack. If you want to take

your business global, (or even just take it further

geographically) you really need partners with a vested

interest in making the operation succeed.

Reduce Costs

Franchising eliminates occupancy costs, day‐to‐day

operating expenses, staff payroll – as all of this then

becomes the responsibility of the franchisee who then needs

to control all of these factors properly. It’s a different

dynamic from just having an Office Manager to oversee a

company‐owned unit. An Office Manager is on your payroll,

whereas a franchisee isn’t. A franchisee has their own

personal interests at stake in the business. They are using

their own time and their own money to grow it. A

franchised Head Office requires far fewer people than a


35

company owned units head office, so your return on Capital

Employed is far better with franchising.

Less Capital Required

Franchising gives you the opportunity to grow your business

with minimal Capital Investment. Instead of possibly

borrowing heavily to fund expansion (i.e. having to

remortgage the house) or having to surrender equity to get

investors on board to raise the funds – you have the

possibility to actually fund the expansion of your business

using other people’s money (the franchisees) at no ‘cost’ to

yourself. You don’t have to pay it back physically. You do

have to give something of value (i.e. a workable profitable

business template) – but you don’t have to put your house

on the line and take on all the risk!!

Shared Risk

The ‘risk’ of a new company unit not working is now shared

with the franchisee. The burden is no longer on just your

shoulders. It’s a shared concern. And this is one of the major

benefits of franchising your business. You now have

business partners (franchisees), who are as keen as you are

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(possibly even keener) to make the business unit work

because they have a financial interest at stake…. And no‐one

likes losing money.

Dominate Your Market

With the right team on board, and franchisees working on

their businesses (which is your business too), you are then

free to concentrate on the CORE business of marketing and

developing techniques (which may be what you’ve always

wanted to do anyway), but haven’t really had the time. Your

role can then turn into one of strategist, business

development, warrior etc., and you can really set out to

dominate your market with your business brand, set trends,

cause disruption and be the number 1 provider in your

business type in your region, in the nation, and then even in

the world!! The possibilities are endless. World domination

here you come!


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4

Why Would Anyone Want To

Buy Your Business Anyway?

This is an important consideration because sometimes

(what I’ve come across) are business owners who have had

enough. They’re sick and tired of their own business, and

want to do something else – so they’ve had this bright idea

to sell their business as a franchise model, and they think

they’re going to get a villa in Spain and get to put their feet

up for a change… whereas nothing could be further from the

truth….

Think honestly about WHO would want to buy your business

in its current state right now? What type of person would be

suitable? Who would be able to afford it? And what could

you possibly sell it for?

Earning a Decent Living?

A franchise is no different. In essence, you are offering

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38

someone the possibility to do what you do… for a fee. Is your

business profitable? Are you taking a salary? For the hours

that you put in, is this a decent salary? Or are you barely

making the minimum wage? You have to be honest with this,

because this is the ‘opportunity’ that you’re selling to

someone else! Many business owners can and do laugh at

what they take home. They put in far and above the hours

that they’ll ever get paid for, but they accept that it’s part of

being the ‘owner’. It is their responsibility.

When I’ve looked at franchises… (and I’d urge and

encourage you to do this) – go to at least one franchise

exhibition and have a walk around. Talk to the people on the

stand. Buy a magazine about franchising and have a look at

what is in there e.g. Franchise World, Franchise Today – I’m

sure there are titles out there. And look at the COST of these

franchises. I know a lady who bought a cleaning franchise

for £19,000. Any sales she generated, she’d pay a 10%

royalty. If the company had generated the lead, then she’d

pay 12% royalty. The company would do all the invoicing

each month, she’d basically do the cleaning or find the

cleaners and manage the cleaning team and submit the

timesheets to them to invoice. Think about that for a while.

Does that sound like a good deal to you? She had to do all the


39

marketing herself, and generally find her own leads. They

gave her a “presence” on their company‐owned website, but

when I asked her to find herself… she couldn’t! She’d

approached me because she was struggling with the

marketing, which was when I looked into it with her. But

these are the kind of people who buy franchises. They’re

often largely people who have just come out of employment

(possibly made redundant), have very little or no real live

business experience, and they want to put their trust, faith

(and money) somewhere… and yet (in my humble opinion),

I think many of them get robbed.

Activities

What type of activity does a franchisee have to do to run

your business? Is it an attractive proposition? You may want

to look at what else is out there on offer, and what a

franchisee can get for their money and effort when they join

a similar franchise. You may not know ‘why on earth’

anyone would want to operate a cleaning business… but

there is someone out there who has only ever dreamed of

doing this.

What I couldn’t (personally) understand with these figures,

was how long it would take, to recuperate the £19,000

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40

investment. Remember, if you do cleaning work and get paid

for it – that’s not ‘recouping’ your investment. That’s getting

paid for selling your time. You need to make £19,000 in

PROFITS before you break even. See Appendix 2 for more on

this. There is a huge difference between ‘Sales’ and ‘Profits’.

What is your USP?

A USP is a unique selling proposition. It is the reason why

customers buy from you. You need to be very clear on what

this is, and to communicate that in your marketing

communications, to give your potential franchisees a reason

to join your team – and not your competitors! You may

currently be the only one in the market with a franchise

offering in your business type – but this is unlikely to last for

long, as where there is one, others will surely follow with

“me too” copycat offerings.

The feedback from existing staff and clients will help with

the development of the USP, but a thorough competitor

analysis must be undertaken to determine your businesses

positioning relative to direct and indirect competitors. This

will also identify potential opportunities. You can achieve

this through surveys, online or telephone interviews. It may


41

be worth getting a third party who is neutral to conduct any

telephone surveys so as to get more honest responses.

A lifestyle choice – Buy Your Job

If you’ve been running your business like a lifestyle choice,

and not paying yourself a salary because there’s not a lot of

money to be made in your business, and you’ve just been

living off your spouse or your parents or the government…

then you have to be honest and say that this business really

isn’t THAT profitable. Why would anyone want to PAY

money to run it? Is it really just a glorified job?

Even if it is, there are people out there (believe it or not),

that will pay, to have something to do! They’ll buy their

job. And they’ll be happy. Let that resonate….

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5

Pilot Operations

In order to demonstrate the validity of your operation and

the fact that ‘it works’ you’ll want to launch a pilot operation

to ‘prove your concept’. This could be for 6 months, but

ideally, it should be for 1 year. You want 12 months worth of

seasonal sales to compare and contrast. The purpose of your

pilot is to ‘prove’ this thing works, and that it’s possible to

make a profit. The results and figures will be something that

you can then use in your marketing promotion as a

successful case study. It’s a unit run entirely by a pilot

franchisee. You will have no input in the day‐to‐day personal

running, but any issues or problems that arise, will bring to

your attention things that need changing / amending in the

operations manual, or that need to be highlighted in the

training programme.

Prove it!

All too often, a franchisor just ‘thinks’ it’ll work elsewhere,

but this isn’t good enough. And you may be surprised or


43

disappointed to see your pilot not do anywhere near as good

as your company‐owned unit did in its first year. There are

clues as to why. It could literally be down to the business

owner who is dynamic and an entrepreneur versus the

franchisee who ran the pilot. The thing is, you cannot rely on

your franchisee to necessarily be ‘dynamic’. They need to

rely on the system to work, and not their personality

traits.

Remember, you may have started your business because you

wanted to do your own thing. Maybe you had that hunger,

that drive, that determination? Think back to when you first

began your business. Would you have bought a franchise? If

not, why not? A franchisee normally has a different mindset

from a person who creates a business from scratch. They

may be more risk averse, or they may be at a later stage in

their life. But the key thing is that your pilot must prove

successful.

If the system cannot be proven to work, then you’ll have a

hard time finding and keeping franchisees, because it just

won’t work for them. And it means your business is not

franchisable. You don’t want ‘10’ failing franchises. It doesn’t

reflect well on your business.

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The Steps

So, where can I find these pilot franchisees? I hear you

wonder. Well, before we do that, there are a few steps we

need to take first. First, we need an operations manual for

them to use. Then we need to find them. Explain what this

is… an experiment. Give them the necessary training. Then

we launch the pilot, monitor it, and if it’s successful, we can

start rolling out other units.

So, before we start the pilot… lets start with step 1 – getting

the operations manual together. The next chapter will

explain how this is done, and how you can do it for your

business.


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6

Operations Manual

Take a deep breathe. Open a word document, make it an A4

size and start typing! This is probably the part that will take

the most time. Maybe one or two months – working on it full

time every day! In this document, you need to explain how

to run your business in words. A few odd pictures here and

there may help to break up the text. Flow charts are good.

Think of this document as ‘the answer to everything’. If you

are not available, one should be able to refer to this, and find

their answer. And remember, we WANT this document to be

thorough and comprehensive because you are not ’24 hour

support’.

The manual will need to include sample scripts for everyday

telephone conversations, pro‐forma letters or emails

covering all regular correspondence, staffing policies, sales

and marketing techniques, branding guidelines and details

of any suppliers with whom discounts have been negotiated.

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The Purpose

The whole purpose of franchising is to remove all elements

of human intervention from the process, so that ‘the system’

does it all. There is a saying: People fail, systems don’t. No

business should be built around you, a person. Quite the

opposite. It should be built without needing your input on a

daily basis. If you can’t do this now, in your own company‐

owned unit, then rethink this idea of franchising. The

business has to be able to operate entirely without you. In

fact, as you go along, you can use your company‐owned unit

as ‘a pilot’ to run without you (if it’s not doing so already).

Put a manager in place, with the operations manual and see

if they can last without having to phone you up with a

question. Any question that is asked can be added to the

manual.

Training & Scaling

I remember watching one lady on the popular television

series Dragons Den, who was looking for investment for her

all‐female decorating company business, because she

wanted to franchise it. When one potential investor asked

her how the training would be carried out i.e. how would


47

you ensure the painting was done to a standard – she said

she’d work with the franchisee and supervise them. You

could see the panel of five all shaking their heads. It will

never work because you have to ‘think big’, and you, as ONE

individual cannot possibly manage ’20 franchisees’ on a 1‐2‐

1 basis across the country! You need a system in place that

will TRAIN them as to how to do the job (they can come to

one place to receive the training), but then this must be

sufficient for them to be able to get on with the job.

This is one of the ‘difficulties’ if you are franchising a skilled

trade. Is it possible to become the world’s best ‘painter’

overnight? Or will pre‐qualifying criteria to apply for a

franchise have to be ‘minimum 5 years experience in the

trade’? You decide. This is slightly different from teaching

someone the process of making a sandwich. 2 slices of

tomato – one at the top of the sliced open bread, one at the

bottom, etc.,

Note that the manual is never ‘finished’. It’s always in a

process of development. It’s recommended to put dates on

each page/ part whenever it’s changed, so that you can

easily see at a glance what the most up‐to‐date version is. It

is recommended to save it in one place, and if there are parts

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that are going to be written by others – they need to email it

to you, as the chief editor, and you include it. Otherwise, you

could end up with various versions, and this will only serve

to confuse everyone and defeat the purpose. You don’t ‘have’

to be the Editor in Chief, you can delegate the responsibility

to someone else, but make sure that one person has the

responsibility of putting it together. You should make sure

that all the necessary sections are included.

What should be included?

So, what should it include? Below, are some chapter /

section headings. It is by no means an exhaustive list, but

use it as a starter. Start filling in these headings, and

naturally, it will grow. Hopefully, you’ll already have ‘a

recruitment process’ that you can just add to the manual. Or

an ‘employee handbook’ that can be copied and pasted.

Oftentimes, businesses do have a ‘way of doing things’ but

it’s never been recorded, or it’s not documented in one

place. This is the task that awaits you.

Think about your business in terms of operations, finance,

recruitment, sales and marketing, processes, procedures –

and write it all down! Include absolutely everything. From


49

best practise (opening hours, opening procedures, how to

answer your phones), to inducing employees, to how to treat

clients etc., Include it ALL.

Example pages to include

Contents page Mission statement (what the companies aims are) Belief statement Background information (history of the company e.g. founders, year founded, awards won etc.,)

The team – organisational chart (who is who) The roles of different people in the company Rules of the office Aims of the business The product mix (what products / services does the business offer)

Recruitment policy Commissions Policy The Recruitment process Person specification (for every role in the company) Job specification (for every role in the company) Advertisement wording (for recruitment) Rejection letter text Initial telephone interview questions Interview letter (with directions to the office) Manual test questions and answers (for each role) How to administer the test Interview questions (for each role) Computerised test questions Computerised test answers Interview outcome letter – offer letter Interview outcome letter – no

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Reference questionnaire Letter asking for references Induction procedure Employment Contract terms Payment sheet Bank payment details Probationary period Preparatory training Etiquette New client enquiry questionnaire How to win new business procedure How to win new business policy New client – checklist Client retention Total quality management checks Audit (self check) Client information questionnaire Probationary review meeting invite letter Appraisal process Invite letter Appraisal sheet Conducting the appraisal Marketing the business Example adverts Daily marketing tasks Weekly marketing tasks Monthly marketing tasks Texts Phone scripts Email scripts Client terms of business Customer complaints procedure Customer complaints form Staff disciplinary issues Disciplinary policy Stages of the disciplinary procedure


51

Outcome of disciplinary warning Letter of fee increase Sales process Commission agreements Brochure Training courses Subcontractors Subcontractors agreement Housekeeping Communications policy – internal Communications policy ‐ external Timesheet policy Timesheet procedure Payroll procedure Invoicing procedure Credit control procedure Accepting credit card payments Reminder letters Office opening procedures Office closing procedures Social media – accounts and passwords Social media policy Accident form Insurance policy Website maintenance Key suppliers Banking procedure Petty cash procedure Credit card procedure Management accounts Accounting process Year end process Insurance policies Pension policy Taxes – Corporation, VAT, Employee

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Government compliance Budgeting and planning Database management

There is plenty more that could be included, but these are

just a few ideas to get you started. Note that ‘how to do the

job’ hasn’t been included in this list – but that would be an

entire section in itself. Think about a ‘bookshop’ that wants

to franchise itself. It would have an entire section on shop

layout, how to order titles, how to choose titles, what to do if

the title isn’t in, when to place the orders, where to place the

orders, the right till to use, cashing up procedure at the

beginning and end of the day etc., There would be an entire

section in just HOW TO operate a book store.

How

Exactly ‘how’ do you go about writing this manual? Start

from the point that the reader KNOWS NOTHING about the

business. Make no assumptions. Some things may seem

almost patronising e.g. ‘how to answer the phone’ but it’s

better to include it. ‘Hello’ isn’t good enough. The phones

should be answered within 5 rings, the standard greeting is:

“Hello, ABC Limited. Lisa speaking. How can I help?” Should


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there be a standard ‘out of hours’ message greeting? E.g.

Perhaps your opening times and the website address?

Document it all! Think about everything! Walk through a

typical day, with your laptop and cover everything. If there’s

anything that you aren’t sure of, start mystery shopping

your own business. Turn up on the shop floor, and start

documenting the processes. Review the procedures, and

wherever possible, simplify it. If people can never remember

the greeting, print it out and tape it to the wall where the

telephone is. Its steps like this, which will ensure you get a

streamlined, always‐the‐same, consistent experience for

every customer. And that’s what you want.

Consistency

You want to be able to repeat the same experience over and

over again for every customer. That’s what franchising is

about. It’s about having certainty. It’s about systems and

process that work each and every time. It’s about

CONSISTENCY. People love consistency, because then they

know what to expect. And this is the benefit of going to a

franchise. Because the experience is always the same, every

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time, and this makes people happy and confident to return

and be satisfied.

You don’t have to get anyone to proof‐read your document,

other than your pilot franchisees because they’re the ones

that will come to rely on it. And you want them to spot holes

in it, because it’s better that you get all of this correct, now…

and not later on… when potentially there are several

franchisees awaiting answers and feeling confused and

(possibly) getting angry.

Format

In terms of formatting, you can make the manual available

as a printed word document in a ring binder file, or on a CD

disk or just as an electronic PDF version (on your extranet).

The benefit of the word document, is that if a section needs

to be revised, or becomes outdated, you can send a memo –

remove section 5, pages 14‐16 and replace with the

attached. So it’s not a matter of having to print the entire

document out all over again. And if each bit is dated, (for

example, bottom right hand corner of the page, it’ll say

‘revised May 2016’) ‐ you’ll always know which is the most

up‐to‐date version of that section, if you refer to the date. So


55

there is no confusion. Certain things like the organisation

chart may well need regular revision as people come and go.

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7

Financials – Show Me The

Money!

If I were to ask 100 potential franchisors honestly, why they

want to franchise their business, I’m sure more than half

would say – for the money. This chapter is really quite

important, because what we’re going to break down is the

true cost of actually franchising your business. In addition,

we want to look at how can we ‘price’ the franchise, so that

it’s a Win/Win arrangement. Remember, this isn’t just ‘all

about the franchisor’ and making them money, nor is it

entirely ‘all about the franchisee’ who no doubt is thinking

that this business could be the answer to their dreams… It

has to work for both parties, otherwise it will not be a viable

project.

Financial Modelling

Financial models should be created to provide clarity on the

income streams for both the franchisor and the franchisees.


57

For the franchisor, the model should demonstrate that

franchising will justify the cost of the initial investment and

potentially generate sufficient income to finance the

continued growth and development of the company (see an

example in Appendix 1).

For the franchisee, the model should provide a variety of

scenarios to help assess whether the franchise provides

sufficient income to justify the initial fee and continuing

royalties as well as providing a reasonable return on

investment (see an example in Appendix 2). In order for the

model to be as accurate as possible a schedule of costs based

on the experience of running your business should be drawn

up. This will assist potential franchisees in determining the

overall cash outflow they should expect in their first few

months of operation.

Franchisor

For the franchisor, there will be capital outlay needed before

you’ve even recruited your first franchisee. You will need to

document your business, and possibly change some part of

it. Allow the cost of this to be two months of your time (full

time) working ON the business. Then, you’ll need to spend

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time researching other franchises out there that are similar

to yours. You may want to apply for them and take your time

going through their material. You may even want to attend a

‘Discovery Day’ (which is a day when all potential

franchisees meet the franchisor). This could just be one big

sales pitch, but it’ll never be presented as such. Instead, it’ll

be presented as ‘an opportunity to discover more about us’.

It’s a great way to see how other people present themselves

in the best possible light. Look at their brochures, request

their material, and look at the pictures that they use. What

can you learn? What do you like? What could you borrow?

Research

You should attend a few franchise exhibition shows and read

a few franchise magazines, to get an understanding of the

industry, who the big players are, what the competition is,

and what is involved. This is all in the name of ‘research’.

You may have an idea of your own, but perhaps there’s a

better one already out there? Or perhaps you can combine

ideas and create a far more enticing proposition for your

potential franchisees. This research phase could be 3‐6

months… even up to a year, just checking out what is out

there. Maybe you’ve already done this, and have already


59

concluded that your business would be suitable for

franchising?

So you need to have done your homework. You should be

aware of what you have to offer, versus what others are

offering, because the chances are, potential franchisees who

have come to you will have researched the other franchises

on the market, so you want to be in a position to know what

else is out there (and why yours in the best).

Costing is very important at this stage. It’s going to be one of

the major deciding factors. You need to put a value on the

franchise. If they were to start a business like yours, from

scratch – how much time, effort and energy would be

needed? To know what you know now… to ‘bottle’ that

knowledge and to save someone else all of that trouble and

time… What price would you put on that?

Franchise fees

What is the initial cost that you will charge for your

franchise? Typically this is paid up front, and will cover their

training. This money is used by you to recoup some of the

costs you’ve had to endure in franchising your business in

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the first place – spending the time to franchise it, plus

marketing costs and the legal costs of drafting the contracts

in the first place.

Look at what the going rate is for your franchise type. And

compare what a franchisee would get for that price – and

what you could offer them. It is possible to have 2 or 3 price

points – a basic, standard, deluxe offer – whereby the more

they pay, the more help and services they get for their

investment.

Source of income

Consider the income from the franchise as going to its own

company /department. At some point, the company‐owned

unit may ‘invoice’ the franchise company for ‘services

rendered’ for consulting and getting it started in the first

place. It important to treat the franchise as a separate entity

but do seek accounting and legal advice for this. There have

been cases that have gone to court, whereby franchisees

have sued the franchise and the franchise has gone bust,

only for the franchisees to make the claim that the franchise

fees were going to support the initial company‐owned units

(and to make a claim against them). So you want to be very


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clear when funds are coming in, for ‘franchise sales’ that

they’re allocated accordingly to that business.

Some franchises promise to put ‘10%’ of the fee into

‘marketing’ or ‘franchise manager support’ – so if you make

this promise, you want to be very sure that you deliver on it.

Ongoing Franchise fees

What will the ongoing royalty on sales be? E.g. 5%? 10%?

12%? Will it start off low in the first year and rise? Will it be

a ‘fixed’ amount e.g. £250 per month? Will it differ (like in

the example of the cleaning company), on whether the

franchise found the lead, or if it was the franchisor? Or will it

be incentive‐driven? Whereby with increased sales, the

percentage decreases, e.g. 8% on the first £99,999, and then

5% thereafter? It’s completely up to you. You decide. You

need to run the numbers through your system to see what

can potentially work for you? And for them? Always put

yourself in their shoes… would this seem like a fair deal if

you were them? And then put yourself in your own shoes…

for the potential royalties received, will this be enough to

cover the cost of running the franchise and providing them

with the support that they’re likely to need?

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New franchisees need two main things – marketing support,

and coaching support to ‘think’ like a business owner. Some

of the training can be done remotely, by giving them

exercises to complete, but the 1‐2‐1 hand‐holding (which is

what some of them are really wanting and signing up for),

needs to be available – and it comes at a cost. Once you cost

in the salary for a Franchise Manager, you may well find that

you need several franchisees just to break even.

Forget making a profit out of this. In the beginning, when the

whole thing is being put together, there may not be anything

left to call profit. You may need to sell 4 or 5 franchisees

before you actually even break even. Look at Appendix 1 for

examples of costings.


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Reporting

Think about how you want your franchisees to report on

their profits. Do you want weekly reports? Monthly reports?

Quarterly reports? How will you know if they are telling the

truth or fudging their figures? What happens if they don’t

report back by the deadline? Is there are automated

message? Do they get a phone call? Who will ring them?

One method which may work well, is if the franchisee gets

an online accounting system as part of their franchise

package (so it’s included in the fee), and that’s the system

they use to do their invoicing. You can automate the system

to send you the figures monthly or weekly. It’s worth

keeping an eye on each franchise, and as your network

grows, you’ll be able to monitor each ‘unit’ and even run

competitions as to which one is performing the best. You can

set the sales targets because you should know what each

unit is capable of (based on your previous experience and

your pilot), so you should very easily be able to see whether

or not they’re doing well or getting into financial difficulty.

Some franchises require their franchisees to register for VAT

and to get a copy of their vat return for reporting and

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monitoring purposes. Your franchisees need to pay over the

royalties within the designated set time e.g. within 7 days of

reporting month‐end, and you, as the franchisor, on your

end, need to be monitoring who has paid, and how much and

who hasn’t, and how you deal with late payees. These are

the additional systems that you’ll have to add into your

operations manual. There should be an operations manual

for your company owned unit, and one for the franchise (I

know, just when you thought I hadn’t given you enough to

do!).

This is simply because ‘franchising’ is an entire business in

its own right. A franchise is ‘selling’ the business know‐how

to those who want to buy it, whereas a company owned unit

is providing the product/service. It’s a completely different

dynamic. In a company‐owned unit, you’ll have wages to

meet – tax, national insurance, pension payments and sick

pay etc., whereas in a franchise unit – you’ll be looking

forward to receiving IN payments each month (or however

often is stipulated on your contract). Think about the

cashflow and what would make sense. Will you be accessing

the franchisees accounts, and then sending an invoice? Or

will you request that they set up a fixed standing order and

pay the difference every quarter? Or will you have an


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automated debit or credit card facility which will just take

what is due and send them an invoice? From experience, the

more that is automated, the better. If you can access their

accounts, send them an invoice for the amount and take the

payment 7 days later automatically… this will help greatly,

because very few people ‘rush’ to pay their bills, and you

don’t want them to be owing you royalty payments and yet

still be expecting help and support.

We will talk further about the franchisee‐franchisor

relationship, but over time it can turn sour. Sometimes,

franchisees feel ‘aggrieved’ about having to pay over

royalties because they think that they’re doing all the work,

and that the franchisor is doing nothing to ‘deserve’ the

money… they soon forget it’s your system and knowledge

that is helping them to make the success of the operation

and that they couldn’t have done it without you, so, a word

of advice ‐ always get the payments up front, automated and

out of the way, so that it becomes second nature. If you wait

on them to ‘declare’ their earnings, or what they need to pay

over to you, you may well find that they’ve already spent it…

and then you both have a problem…

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8

Marketing The Franchise

Remember that the minute you decide that you’re going to

franchise your business, you no longer become a ‘whatever

you were doing before’ company, but you are now a

marketer of the franchise opportunity. You will need to set a

budget aside to create marketing materials to promote this

opportunity. This is entirely different from what you were

doing before. Remember, we need to treat this whole thing

as a completely new business entity.

Sell the Benefits

The key thing that the promotional marketing materials for

the franchise must convey, are the BENEFITS of buying into

the franchise. The franchise owner's input is needed at this

stage. What benefits will someone get if they buy into your

business opportunity? Why should anyone invest in it? What

will they get? Training? How much? Support? How much?

Materials? Like what? Equipment or software – such as

what? What is included? What isn’t? What are they buying


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from you that they wouldn’t be able to get elsewhere? Why

should anyone choose you? What sort of earning potential is

possible? What did the pilot do? Is this comparable to those

who go self‐employed and just try and do this by

themselves?

Location based (premises)

Is your franchise the type which needs to have premises?

Can you assist them in finding the premises? Do you have a

locations agent in place? What is the local cost of rent? How

will this affect the franchisees earning potential? Is there a

lease‐lawyer that the franchise can recommend? Is there a

special package for kitting out the premises that can be

bought for a reduced fee? Is this (or part of the equipment

needed) included in the franchise fee, or is it extra? Can you

show them where to buy everything at a discount? All of

these time saving helpful contacts make the franchise

potentially more attractive as the franchisee wants to be up

and running as soon as possible. They don’t want delays and

hold‐ups; They want to know that they’re in capable hands,

and that if they go with you, then they’ll be making progress.

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Territories

To leverage your maximum return for your business,

territories need to be designed to take account of the

number of customers in the likely target range. If these

territories will be exclusive, they need to be balanced in

terms of income potential. Look for a company that

specializes in mapping territories for franchises. Discuss

your requirements with them, and see what they can do for

you. You’ll need maps for all the territories, as these will

play a critical role in the development of your brand

nationally. You should put a large map on your office wall

and colour in each geographical region when it’s taken!

Think about which areas you wish to franchise first. You

may first want to actively target the major metropolitan

areas.

Marketing the package

To start with, the franchise opportunity can be added to the

existing company website. It can just be one page whereby

interested parties enter their details on a lead capture form

(name, email, telephone, postcode) and are sent further

information. These people then need to be followed up by


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phone, to possibly have any questions answered and to meet

to discuss the opportunity further.

Now, in the beginning, it may well be the business owner

who meets with these first few potential franchisees. There

needs to be a method in place for following up with

enquirers. As the franchise gets more sophisticated, it will

need its own website. On that website will be information

about the franchise itself, the next discovery days and

franchisee success stories. Enquirers should be able to

express an interest for further information.

The Steps

Just be very wary of people who are ‘fishing’ for information.

It could be a competitor who wants information, time

wasters, some people who really want a job and have

absolutely no intention of ‘buying’ an opportunity to join

your team… so with this is mind, one way to protect

yourself, is to give a little – and see what comes back.

Step 1 – expression of interest from the applicant (this is

preferably by email). They fill out their name, number,

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postcode and email address and in exchange, they’re sent an

application form ‘expression of interest.’ (See Appendix 5).

Step 2 – Out of 100 people who enquire, maybe only 20 will

return an ‘expression of interest’ form. This is literally a 1 or

2 page form asking for their name, address, date of birth,

highest qualification and what interests them about your

franchise.

Step 3 – when this is returned, THEN you can send out a

comprehensive brochure with projected income figures, a

territory map and more information about the people

behind the franchise. Even at this point, out of 20 people,

maybe only 5 will want to meet and be interested in taking it

further.

Step 4 – meet the potential franchisee. If you have to travel

to them, (within reason), go to them, or figure out how

perhaps you can meet them half way. This is your

opportunity to meet face to face and for both parties to ask

some questions. Prior to the meeting or before the meeting

starts, you may want to get them to sign a ‘NDA’ (Non‐

Disclosure Agreement), (see Appendix 6) which is just a

simple agreement that they’ll keep your conversation


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confidential because at this point they may be asking for

sensitive information, that you can disclose with someone

‘on the team’ but not necessarily ‘an outsider’. They may

want to see more financial figures, or other information. The

more money you are asking them to invest, the more

thorough they’re likely to be with wanting to see maybe 3 or

5 years trading records for the company unit. This data may

already be publicly available.

Step 5 – you may want to do any necessary checks on them

and if you are satisfied that they’ll be a good ‘fit’ then its time

to sign some paperwork. You can send them the franchise

agreement to look over and get legal advice on, once they’re

satisfied to sign and return.

Step 6 – the next step is to then arrange training dates and

times. Think about where the training will take place, who

will deliver it (it could be various people) and this needs to

be budgeted. If a franchisee wants to repeat the training,

what is the process for this? What will the charge be if the

initial fee covered the first training? It’s a good idea to plan

ahead, and if there is material for them to absorb prior to the

training, give them sufficient time to be doing this. If there is

anything that you expect them to do – this must made be

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very clear. Checklists and deadlines are normally good to

ensure everything gets done. If they have to choose

premises, or employ staff etc., all of this – interview dates,

times, places etc., needs to be arranged. You should be

supporting them in their first few interviews for staff –

especially if they’ve had no previous experience of

recruitment.

Step 7 – Launch! As a franchisor, you will be able to advise

and help on creating a successful launch and possibly even

getting media coverage. Remember that every new

successful franchisee added to the network is also a success

story for the business as a whole, so it should be properly

planned and celebrated.

Always be mindful of what you promise in the marketing

materials, and make sure that you deliver on it. If you

promise stationery, if you promise a PR template, if you

promised radio advertising – all of these promises must be

delivered upon, and if there are costs associated, then they

should’ve been taken into account when the franchise fee

was first set.


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You will need to create a check plan and checklist for every

step of the way, so that you know what to do next, and that

the franchisee also knows what is coming next, because they

will be extremely new to this. For example, you could be

launching a new franchise miles from home. You have no

idea what the local media is. This could be a task that you

give your franchisee – to provide you with the names and

emails of 5 local papers and 5 local radio stations – and then

your franchise team can do the rest to support the launch.

Whatever you choose, it has to help the franchisee. In the

beginning, they’ll be very enthusiastic, and it’s at this point

that you really need to get them off to the best start possible.

Imagine what that will do for them and your business if they

did get local media coverage?! It’s unlikely that that would

be something that they could’ve managed themselves – and

this is the kind of added value that you want to be able to

give them.

The more you can do for them, that they couldn’t have done

for themselves, the happier they’ll be with their decision to

go with you and it will reduce buyers remorse (the regret

we feel after making a big purchase). It is relevant for

everything – be it a car, a new kitchen, a new computer …

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the sooner we feel reassured that we made the right

decision – the better our mental state.

Be wary of established businesses

Just a word of warning on the ‘established’ business owner

who may see your franchise being marketed, and feel

attracted to apply to you to see what you can do for them.

Let me give you an example of at least two experiences that

I’ve had, of just that.

One guy I met told me how he’d gone into every shop on the

high street offering his services, but how they didn’t seem to

be that interested. He asked me what we’d do differently to

make sure he had business. Now, be wary of this question.

This isn’t necessarily the question of someone who is

interested in joining you… all he knows is, he’s tried to go

ahead and do something himself. It hasn’t worked, and now

he wants advice on what to do to find clients. My standard

response it simple – “Don’t worry, we’ll teach you what to do.

It works for us, and that’s why we’ve been doing this for years.

We never have trouble finding new customers.”


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I learned this the hard way, because when you tell them

where they went wrong, you’ve now become an unpaid

advisor to how to run your type of business and you’re not

there to be giving unsolicited advice. And if you do tell them

what to do, invariably they’ll turn round and tell you that

they tried it and ‘it didn’t work’ – when you know it does

work, and clearly, they’re not you and / or your brand doing

it, and YOU KNOW it works for you, and you don’t want to be

getting into an argument because you’re not there to

‘convince’ them of what to do. Let your company owned unit

and pilot operation speak for itself.

Is the franchisee suitable?

It can be very tough in the beginning when you just want

your first few franchisees on board… you will literally want

to take anyone who comes through the door, but you have to

be patient. The wrong person on board will be more

headache and trouble than they’re worth. If they’re difficult,

if they don’t listen, if they think they know better than you, if

they’ve ran a similar type of business and failed miserably

and yet want to come along and tell you what to do… just

ignore them. Don’t let them in! Tell them the territory has

gone!! If they’re rude and demanding to your staff or in their

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communication – it just won’t be worth it. EVEN IF they get

to one of the few that you actually meet… if your 6th sense

tells you ‘no’… if you aren’t entirely comfortable with them –

don’t let them in. They will ruin your life. You may find that

in the end you just return their money and even then, they

still won’t be happy. The last thing you need is someone

running around bad‐mouthing your operation, when all

you’ve ever done is try to accommodate them.

Remember that the standard franchise agreement is for 5

years, and that’s a long time to be irritated by a franchisee.

You may have to deal with them literally daily for the first

few months as they settle in, and unless you have the team

in place to take this burden from you – that will extend to

their entire time as part of your network. Believe me – it’s

not worth it. You will know if you like them or not, and

whether or not you want to work with them. Be honest with

yourself, and say NO if you have any doubts.


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9

Selecting Your Franchisees

If you have ever done any form of recruitment, then you’ll

understand the pain that comes with trying to find the right

fit for the job. As with anything, in the beginning it may be

trial and error. As you get better at identifying who you want

on your team, then you can update your website

accordingly.

You’ll get better with experience!

Even changing the process of getting information from the

applicant first can drastically reduce the timewasters.

Asking the question ‘what attracts you to this franchise’ can

help you to know what people are really looking for, and to

target your marketing message accordingly. And when you

speak to them in the follow up phone call to make the

meeting – you can use this information to your advantage.

Someone who is interested in the franchise for the training

opportunities will be very interested to know about the

training opportunities available. Whereas someone who just

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want to be their own boss, will like to here about the

freedom and autonomy being a franchisee can brings versus

being in a job. This is a real opportunity to build something

that you can either sell at a later date or have staff run for

you. Some franchises have franchisees who own more than

one outlet.

Termination

Speaking of the exit strategy – many franchisees may want

to do this for maybe one or two terms, and then either sell

out or have a staff member running it for them, whilst it

brings them the opportunity to retire early or move abroad

etc., The way to end the agreement is outlined in the

franchise agreement and it can be ended by either party if

certain conditions are met. Sometimes it is by mutual

agreement, other times, not. You can’t force someone to stay

with you, nor can they continue to use your systems and

methods without paying for them. At the end of the term,

they may renew (for no further fee), or end it there. They

can find a buyer for the franchise, or if you have interested

parties, then this could be something that you assist with –

putting the buyer and seller together. Your input as the

franchisor would be needed to agree the purchase, as the


79

buyer would need training on the system – but all of these

intricacies would be covered within the franchise

agreement.

Ideal profile

Think about who your ideal franchisee is. How old are they?

What is their background? What is their previous

experience? The ‘best’ franchisee is said to be male, aged late

40s, in good health, hard working, experience of middle

management, a family man who wants to take more control

of his destiny. He doesn’t want to rock the boat completely,

and so doesn’t want to risk everything completely to start

his own thing. Statistically, franchises have a far higher

success rate than the average business. The ideal franchisee

probably still has a mortgage to pay for, and so is vested in

making the operation a success.

Ideally

The franchisee will have the support of their family and will

have enough savings to support themselves whilst they

work on the business. What you don’t really want is

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someone to put their life savings into something. The stakes

are too high!

You don’t want to offer them the franchise for free or to ‘pay

as you go’ because they need to be financially invested

(committed). It shouldn’t be easy for them to just walk away.

Likewise, be wary of large conglomerates who may want to

buy into your idea. Flattering as it may seem, they may not

be able to dedicate one set person to the operation, which

means several people have to be trained all at once. And

should anything go wrong, you don’t really want to fight

someone who has deeper pockets than you.

To summarise

Choose your franchisees carefully and don’t be in any hurry

to have just anyone sign a legally binding agreement with

you. Make sure that you are comfortable with them because

you’ll be working closely with them for the next 5 years

(potentially), plus these people will be your future

ambassadors for the system.


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10

What Should The Franchisee

Look For?

Although this book is aimed at the potential franchisor,

some readers may be thinking about buying a franchise for

themselves. Even if you are a potential franchisor, there’s

nothing wrong with thinking about what a franchisee may

be looking for, or the type of questions that they may be

thinking. Your task (as the franchisor) is to make your

business proposition fit exactly what they’re looking for, and

be the answer to their dreams.

Checklist of questions that franchisees should be asking:

Am I restricted to a territory? If so, what size is it? Who provides the leads? How is the franchisee expected to do marketing? What is the time/cost commitment? Is training given in this?

Do you need specific qualifications to join the franchise opportunity?

Is any specific experience needed? Do I need premises? What is the earning potential?

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Who are the other franchises in the marketplace? What do they offer? How is this opportunity different / better?

How many franchisees are there? What is their success rate?

When was the franchise established? Do they run any company owned units? How long is the initial franchise agreement term? What happens at the end of the term? Is there a renewable fee?

What are the royalties ? Is it possible to sell the franchise? Who is behind the franchise? What is the process of getting a franchise? What training is given? What is expected of me? What can I expect? What am I getting for my investment?

Don’t be put off by some of these questions. Think about

what your franchise has to offer, and sell its benefits. You

may even include these questions as part of your marketing

plan! You could have a page on your site, or write an article,

or create a video for YouTube with the answers to these

questions. Take a look at: “Here are the TOP 11 MOST

IMPORTANT questions everyone should ask BEFORE

investing in a bookkeeping franchise…” see:

https://www.youtube.com/watch?v=dsHWXKHKZNU

https://www.youtube.com/watch?v=dsHWXKHKZNU


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11

The Franchise Contract

The franchise contract is extremely important. The legal

agreement is something that we’ve referred to on numerous

occasions in this book. Don’t let it be a stumbling block for

you to get started. It doesn’t have to be the first thing that

you do. In fact, the first thing that you should really be

focused on, is getting the operations manual complete and

running a pilot to test whether the business is truly

franchisable. Then the best way forward is to find a solicitor

who specializes in franchise contracts, explain your business

concept to them, and let them draft the agreement for you.

You can find a franchise specialist solicitor via your local

solicitors body e.g. The Law Society (England & Wales) if you

are in the UK or the Scottish Law Society (if you are in

Scotland) etc.,

In addition you’ll want to make sure that any other legal

agreements have been drawn up professionally, if you’ll be

expecting your franchisees to rely on them… that is

employment contracts, leases, client terms of agreement,

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subcontractor agreements and any other agreements that

you have in place.

Franchisor owns…

Generally, the franchisor owns the system, the trademarks

and the rights. The whole point of franchising is that these

items are allowed to be used by another party for a fee.

What is the franchisee getting?

The franchise contract will state what the franchisee is

getting – namely access to knowledge, know‐how of how to

run the business.

The contract itself

The contract itself should be read by you. Don’t skip over

any pages, but do look at it carefully line by line. There is an

example of a franchisee contract in the appendix. It’s not

advisable to just copy and paste someone else’s contract as

all businesses are different, but this will at least give you

some idea of the type of things that are in there.


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12

Pilot Operations (part 2)

In an earlier chapter, we looked at the importance of having

a pilot operation running for at least one year. However,

before we could launch one, we had to make sure there were

other things in place – such as the operations manual, and

the training program. Let’s assume that these things are

now in place, and we’re now ready to start with a test pilot

scheme. We could use a manager to run a company‐owned

unit, but this has already been established, and we want to

proof the concept from the beginning.

We could recruit a willing participant to start our first pilot.

This pilot franchisee should be told that this is a pilot, the

first in a series, and that there will be mistakes – but this is

all part of the course for the business to get the franchise

offer right. We could openly advertise for this pilot

franchisee (in franchise magazines) etc., or we could put a

page on our website, and see if any enquiries come in. If,

we’ve been approached in the past about franchise

opportunities, we could contact some of those enquiries to

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see if they’d be interested or willing to take part in one of

our first pilots. We can run more than one pilot at a time. In

fact, it saves us time if we can get a few pilot franchisees

together, because then we have a few people to work with

simultaneously. And if one or two drop out – the other pilots

can still continue. It’s all a learning curve and nothing will go

to waste. If they’re based nearby to the company owned

unit, this will be handy.

Charges

Now, the key question is – should we charge them? Well, it

depends. On the one hand, it is ‘a pilot’ so they are being

used as test subjects, but on the other hand, if we have

absolute faith and certainty that this will work, you have to

remember that you’ll be investing significant time in their

development, and in their success. And you do want them to

make some sort of financial commitment, because you want

their full attention. This isn’t a free ride. Perhaps, take the

financials used from a previous chapter and charge them 25‐

50% of the usual joining fee, so that it’s beneficial for them,

but not ‘free’. Giving away your territories for ‘free’ isn’t

advisable. There is a value in what you are offering, and you

always want to make sure that your franchisees realise this.


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No‐one ever values something when it is free. If you have to

pay for something, you are far more likely to take it more

seriously.

The franchisor‐franchisee relationship will always be one of

co‐interdependence. However, you should never let the

franchisee feel as though you are really desperate for them

to join your business (even if you are!) It is better that you

wait for the right person. The last thing you want is to give

away pilots for free, and for the franchisee to not respect the

opportunity. Making them pay a small sum at least, will

make them focus on the task in hand. The pilot needs to be

as real to life as possible. Someone who was handed a free

business will not have quite the same mental commitment

level, as someone who has just paid ‘£50,000’ and is literally

betting her life savings on it.

You want people who are committed, and prepared to go the

extra mile, because (when you think about it), when you first

started your initial business – you had to do whatever it

took, to make it work. This isn’t a 9 to 5, Monday to Friday

type ‘job’. When you start a business (franchise or

otherwise), the hours will be longer – at least in the

beginning, because it takes a lot of energy to get something

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off the ground. Once it’s launched, the momentum that has

been created should help to keep it propelling forward – but

it still needs the time and energy commitment.

Working ON the business

A very useful book to read is The EMyth by Michael Gerber.

This book explains why many small businesses fail. The “E”

stands for “employment” or “entrepreneurial”. It says that a

business should be a ‘system’ which operates independently

of its owner(s), and that the reason many small businesses

fail, are because they are owner‐dependant, and not systems

dependant.

So, at the very least – even if you’ve got to this point, and you

don’t end up franchising your business, the mere process of

having documented all of your processes, means that you

are way ahead of the vast majority of small businesses, that

just have their owners doing everything, and are slowly

burning themselves out. The key (according to The emyth)

is to work “ON” the business, and NOT “IN” the business.

And having created an operations manual – you’ve just spent

time working ON your business, and no doubt, you can see

this has been a useful exercise? You now have a best practise


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way of how you do everything. And no‐one should ever have

to ask you a question again, because the answer is in the

manual.

Even if you don’t go ahead with the franchise, it is possible

that you may expand to another location, that you recruit a

manager, and give them training via the operations manual,

and that (with the right help and support), this unit will

effectively run very well without your everyday input.

Franchise Management Systems

The franchise will need some sort of communication portal

to help the franchisor, the management team and the

franchisees to work together and communicate more

effectively. A management system could be an online portal

with a user name and password which has various

functionality that helps everyone.

Operations Manual

An up‐to‐date electronic version of the operations manual

can be kept in the online information library, making it easy

for everyone to access all amendments immediately online.

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Information Library

An online information library can host all tools and common

documents such the operations manual, template job

descriptions, template person specifications, scripts, brand

logos, client contracts, employee template contracts etc.,

Some templates can be customisable (for example company

letter headed paper).

Company News

An online portal can be a great place to share news, updates,

success stories, recognition i.e. ‘franchisee of the month’,

new staff, welcoming new franchisees, notification of new

territories available, company plans for expansion, awards

short listed and won, a selection of professionally written

newsworthy press releases for submission to local trade and

regional media and newsletter templates for the franchisees

to share with their networks.

Franchisee forum

The online platform can act like a message board and

provide a space for group discussion, ideas, views and

collaboration with the rest of the network. This is better

than being on another platform such as LinkedIn or

Facebook, because it will be your forum and you will have


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more control over it as the moderator as it will be hosted on

your platform and not elsewhere.

Events

An extranet type portal is a good platform to advertise

details of both past and forthcoming events, such as

company‐wide conferences, webinars, training, the next

franchise induction programme, the next Discovery Day.

Pictures of the day can also be included on this platform.

Printed Materials

Depending on your set‐up, you may have a printing deal /

arrangement with a company that can take care of your

entire franchise networks printing needs. Vistaprint offer

this service under their Corporate deal whereby a designer

is allocated to your account. The set‐up is fairly

straightforward. You send in a template of your

compliments slips, business cards, brochures, letter headed

paper etc., and they upload it to their portal. Your

franchisees can then log in through a special portal, (so only

they can see the items on offer, and not random customers).

When a franchisee logs into your portal, and clicks on ‘order

stationery’ – it can take them to your branded the log‐in

page with e.g. Vistaprint, so they wouldn’t even realise that

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(in effect) they’ve left your site, but they’d be able to place

their order.

The franchisee can customise the item with their own

details. Your entire network actually benefits from reduced

printing costs, (because all orders coming from your portal

are classed as a bulk order). Other benefits include the fact

that you then have brand consistency and you can be

confident in print quality and that everyone has access to

pre‐designed high quality templates (flyers, merchandise

etc.,)

There may even be a commission for your business for each

order placed as the volume from your team is expected to be

higher than the individual customer and many print portal

providers are keen for more business like this. It’s easier and

more profitable for them to deal with ‘one franchise’ with

‘100 franchisees’ all placing orders from a set menu.

E-Learning

The portal can have training modules, which help to keep

your franchisee up‐to‐date with legislation and industry‐

related changes, or even just customer‐service training


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modules, which they can take repeatedly, and also allows

access that their staff can log in and take the training.

Results

The portal could have a weekly scoreboard or some sort of

measure (weekly, monthly, annually), so that franchisees

can compare how they are performing compared to their

fellow franchisees.

Keeping Track (For Managers)

The portal can be used by Managers to keep track of

recruitment enquires and progress. All portals can have

password access and functionality that are strictly for

Managers‐only and other parts which the franchisee can

access.

The Franchise Management System can be ‘added to’ and

increased over time. As long as the IT infrastructure is in

place, new pages and support can be added to it as the

network grows. Always be thinking ‘big picture’ and

‘scalability’.

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13

The Franchisors Organisation

Do seek legal advice, but it will probably be worth you

setting up a completely new structure / entity to be the

‘franchise’ business. This business is for the sole purpose of

dealing with the franchise operation. It will need its own

website, its own marketing and its own operations manual.

You original business might be called ABC Ltd, and you could

simply call your franchise operations business ABC

Franchise Ltd. Naming the franchise doesn’t have to be that

complicated.

It needs infrastructure

Start with drawing out the organizational structure. Give all

the employees a job title (even if it’s your name in all of the

job roles to begin with) and then write out a job role and

person description for each role. You will need a Franchise

Manager. Initially their role will be one of recruiting,

following up leads, meeting and interviewing the

prospective franchisees, answering questions, providing


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information and leading the discovery days (if you run

them), and generally being the franchisees overall point of

contact. Someone with a background in recruitment, HR and

management would be useful. You will want someone in

place to handle all of this activity because you’ll want to

shield yourself from time wasters and people who just really

want to speak to you (as the business owner) to either pick

your brain or get free business advice for their own failing

business! Avoid situations like this.

Some enquiries will start off pretending to be interested in

the opportunity and by the time you’ve got them off the

phone, they’ll be telling you how to run your business and

wanting a job from you. I’ve been there. I’ve experienced it.

I’ve never understood why people do this. If you feel the

need to tell me what to do – why not go and do it yourself? If

it’s that simple. But often, these people just want a job from

you. They want to be paid a safe, secure regular income.

There is no way they would ever put their money where

their mouth is.

In the beginning, you can always ‘sit in’ on any meetings and

assist the Franchise Manager in their role. You may already

have someone in your existing business who knows the

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business as well as you do, and will know who they’re

looking for when they’re recruiting. But just be aware of

taking staff resources from one business and putting it to

another – you don’t want your initial primary business to

suffer at the expense of the franchise.

Example of an organizational structure

Example of a Job Description for: Franchise Area

Recruitment Manager

Purpose of the job – to follow up the applications received

by post, email and phone, and to identify and select quality

franchisees. Mainly: recruitment. Ongoing looking for

opportunities to promote the franchise such as at

exhibitions and franchise trade shows.

Shanice Redmond CEO & Founder of ABC Franchise

Ltd

Traci Morgan Franchise Area Recruitment Manager

Fred Williams Franchise Operations Manager

Shanice RedmondFranchise

Training Manager


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Job Description Outline:

• Place adverts on the various websites that we use

• Monitor applications via an email address set up:

[email protected]

• Send out an application form and brochure by email

• Follow up by phone, all those received back within 48

hours, and those not received back – follow up within

28 days by email

• Telephone interview the forms that are returned

• Send out the practical test by email & mark test

papers returned

• Phone, and thank them for the papers and

• Arrange to meet for a (final) interview in London –

ask for 2 references

• Send the 3‐page business plan before the interview,

so that they can look at it

• Receive back the business plan – and notify ABC HQ

(Operations Manager)

• After which point:

o ABC HQ reviews the forms and decides (and

will notify those who are no’s)

o Operations Manager meets the franchisees

and signs the franchise agreement. The


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franchisee pays the fee to ABC & attends the

training with the Training Manager.

The Operations Manager will liaise with the Training

Manager regarding training, and with the Franchise Area

Recruitment Manager regarding the territories that are not

available.

Hours:

• Approx 8‐32 hours a week. Initially, there could be

less to do – and ongoing, it could grow.

Place of work:

This work can be done from home, but an arrangement

needs to be made regarding reimbursing telephone calls.

Good spoken English is a must, because the job involves a lot

of communication with people.

Other: All interview questions, tests, answers, wording of

adverts etc., already have templates. The Recruitment

Manager just uses the tools available. We’ll reimburse

telephone costs.


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Example of a Job Description for: Franchise Operations

Manager

Purpose of the job – to meet the franchisees and sign the

franchise agreement. To be the point of contact for all the

franchisees. To do on‐site visits and do audits and provide

support to the franchisees. The Operations Manager checks

that procedures are being followed and performance targets

are being met, and acts like a ‘coach’ for the franchisee to

help them get the most out of their franchise.

Job Description Outline:

• Receive the business plan from the Recruitment

Manager – and analyse it (this is the basis of working

with the franchisee)

• Send a letter – no / yes to the application

• Meet with the franchisee to sign the agreement and

take payment

• Arrange dates for the training with the Training

Manager

• Whilst the training date could be in a few weeks, the

Operations Manager needs to be ‘coaching’ the

franchisee on preparation – especially of the business

plan.

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The Ops Manager will liaise with the Training Manager

regarding training, and with the Franchise Recruitment

Manager regarding the territories that are not available.

Hours:

• Approx 2‐3 hours a week per franchisee signed up.

Place of work:

This work can be done from home, but an arrangement

needs to be made regarding reimbursing telephone calls.

Good spoken English is a must, because the job involves a lot

of communication with people.

Other: We have the coaching tools and business plan tools

for them, so the Ops manager needs to apply them. We’ll

reimburse telephone costs. Ideally, they’ll have transport,

because the role involves ‘outreach work’, and going on‐site

to visit the franchisee at least twice a year. Transport is

reimbursed. We have the on‐site audit kit, and the

franchisees performance needs to be reported back to ABC

HQ.


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Example of a Person Specification for: Franchise Manager

1. Qualifications:

Essential: The candidate should be educated to GCSE

standard or equivalent.

Desirable: Business, Accounting, Marketing, Sales, NLP,

Coaching background

2. Experience:

Essential: Working under their own steam and initiative.

Coaching or supporting others to achieve results –

possibly in HR.

Desirable: Experience of working with and motivating

people, ideally franchisees. Knowledge of running a small

business or an understanding of the challenges which

small businesses face.

3. Aptitudes & Ability:

Essential: Good organisational & administrational skills.

Internet access. People person.

4. Personal Attributes:

Essential: The candidate should be self‐motivated,

enthusiastic and able to manage and direct their own

workload. We need someone who is friendly, reliable,

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effective, a coach, willing to travel and possibly be away

from home overnight.

Costs of the organization

There will be costs (investments) that you will need to make

in the beginning to get the franchise off the ground. These

don’t have to be enormous, but it is worth getting a separate

website and getting the marketing materials (brochures,

info leaflets) designed for anyone who expresses an interest.

There will be an investment cost in terms of TIME – having

to organize the whole thing and to document each process

and to create the training program. And then there is the

cost of getting the legal paperwork drawn up.

And on an ongoing basis, there is the cost of marketing the

franchise. If you choose to do exhibitions and advertising in

magazines – it all costs money. If you choose to join a

franchising there’ll be an annual membership fee.

Supervision – Financials

Be prepared to have to invest in your franchise business.

Eventually, you will need to have a supervisor / Franchise


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Manager on board. They will be the first port of call for your

franchisees. And within your operating figures, you should

budget for their salary. Their role is similar to that of a

business coach. Their role is to support all the franchisees

across the board. Part of the royalties collected can be

allocated towards paying for their salary. You may even

choose to put them on a performance‐related incentive,

whereby they get a percentage for each new franchisee that

joins and / or a percentage of the franchisee’s sales. This will

keep them focused on performance.

Beware of having lots of enquiries and few sign‐ups. Some

people really are just fishing, and others are just looking for

a job, so don’t be surprised (or disheartened) if most of the

people who are taking a look at your opportunity don’t take

it any further, and only look.

In the beginning, the same person can be the person who

does the recruiting as well as the ‘supervising’ of the

franchisees, but as the network grows, you may find you

have to split this role, so that there is someone dedicated to

sifting through and generating new enquiries to join the

network, and someone else looking after the franchisees

who have joined – proving them with support.

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Supervision – Operations

As the franchise grows, the pressures will continue, but the

concern will change. In the beginning new franchisors are

normally more concerned with getting new franchisees into

the business. You may get quite carried away with how

much money you think you can make. But the first few

franchisees will probably just help you to recoup your initial

investment in terms of what you had to spend and invest,

just to get the franchise going in the first place. After your

first few franchisees are on board, your attention will

probably soon turn to performance. Don’t be surprised if a

lot of your time and energy is consumed by performance‐

related issues.

This is where a supervisor can come in handy, because

they’ll be on hand to encourage the franchisees

performance. Remember, no one will ever be as dedicated as

you were when you first started your business. It is unlikely

that anyone will ever match your level of passion, energy

and enthusiasm! I remember when I first started my

business I would work through the night one day per week! I

had that much to do, but I was never tired. My energy was

boundless. However, don’t ask me to do this now. I’m too


105

tired. And your new franchisees (many of whom will

probably be coming from employment) have probably never

ever had to work through the night (unpaid).

One of the biggest challenges you face may be to do with

their mindset. If they have an employee mindset, they’ll be

thinking ‘time for money’. So they’ll expect to work limited

hours and still get paid. Sadly, business doesn’t work like

this. So, newcomers may need more encouragement and

handholding than you ever did. They need to be encouraged

to put in the time and effort – even if ‘initially’ the payback

isn’t instant.

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Marketing the product/service

When it comes to service based businesses, one of the

biggest issues business owners have, is that generally,

they’re terrible at marketing. Your marketing support is

what they will really need. And in instances whereby they’re

expected to do some or most of the marketing for

themselves, they really need training, otherwise they’ll only

struggle, and possibly quit. Think very carefully about how

you will help your franchisees to find new business. There

will often be a cost associated for new business acquisition.

Some franchise owners cost this into their initial joining fee

and promise to help support the franchisee for the ‘first five’

customers. Others will allow for it in a separate monthly fee

which is purely and solely for marketing that franchise

territory on its behalf.

You, as the head office may do ‘national’ marketing on the

franchises behalf, you may run TV or radio campaigns or

newspaper campaigns which they can replicate locally (you

give them all the artwork or place the ad on their behalf). Be

mindful of how your brand is being represented if you don’t

provide company‐approved branded materials because it

can be very damaging if one creative franchisee goes off on


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their own and decides to do things their own way. You don’t

want this. Your way should be the only way they use and

ever need!

You must maintain the integrity of the business. Quality

control guidelines should be put in place and a system for

identifying and correcting any breach must be implemented.

Operations

The franchisors organization needs to continue to operate,

and you just have to be mindful that the launch of a new

franchise business doesn’t drag down the initial business.

The strain can be huge in the early days as the new business

is launched and you have to ‘lend’ staff to the new franchise

business to get it going. Eventually, you will want to employ

staff independently to operate the franchise unit, but this

can only really be done when the franchise is viable and

bringing in revenues that support additional staff.

Remember that the franchise business income shouldn’t be

used to support the original existing company owned units.

When franchises have fallen into hard times and have had to

close, franchisees have sued, asking for the records of the

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franchise to be investigated, because its funding was used to

prop up the company owned units! If the original company

owned unit invested time and resources into getting the

franchise off the ground, maybe raise invoices from one

company to another, so that when the franchise company

takes off, then it can repay what it ‘borrowed’ when first

setting out. It can be a tricky area, but expect franchisees to

ask questions about where their royalty fees are going and

how the money is being spent.

Maybe not in the beginning, but over time, as their

confidence grows, they may start to challenge you and your

authority and this is the bit that may come as the biggest

surprise, because most small business owners aren’t

thinking that far ahead – to how the franchisor / franchisee

relationship develops over time, but you should. And this is

why getting in agreeable people at the beginning, will help

prevent headaches later on.


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14

The Franchisor / Franchisee

Relationship

In the beginning when people first start thinking about how

to franchise their business, their thoughts are normally on –

how can I grow this business quickly? How do I make more

money using other people’s time and energy instead of just

my own? They may be thinking about how best to enter new

markets and the franchise route comes to mind. And in the

beginning most people who approach you will probably be

new, fresh, no‐business experience people who are keen to

start up.

Best analogy – parent / child

The best analogy I can give you when thinking of how the

franchisee / franchisor relationship is, is to compare it to

that of one similar to a parent and child. IN THE BEGINNING

when the child is born, it is dependent upon its parent for

everything for survival. It learns how to eat, walk, and talk –

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through training and a process of socialization. And then he

or she hits their teenage years – and it all changes. Then they

think they know it all, and that they no longer need the

parental guidance and advice, and this is where things can

become difficult. Teenagers usually will grow out of this

phase (and they may leave home in the process), but it’s not

a pleasant or easy time for either party concerned. That is

the typical parent‐child relationship.

Evolving nature

With franchising, the relationship is forever evolving,

developing, growing. You, as the franchisor will need to

adopt good communication methods with the franchisee

because you want to give them the guidance and support.

However, at renewal stage (around the end of year 5 for

most franchise agreements), this is decision time. They need

to decide whether they want to renew, or whether they want

to go it alone. Now, depending on the type of business and

wording you have in your contract – (say it’s a service‐based

business, like a cleaning franchise), you will know whether

or not any client ‘belongs’ to the franchise or is at liberty to

follow the franchisee to a new location. The contract may

have a non‐compete clause which states that the franchisee


111

cannot operate a similar type of business within x business

miles, and within x time frame – so that provides you (the

franchisor) with some limited protection, but they are

allowed to work and earn themselves a living.

It could be that for 5 years your team work diligently to

support the franchisee with systems, teaching them

everything that they need to know, and then they don’t

renew their contract and they go off (possibly to another

part of the country) to establish their own business (doing

the same thing, but in their own name).

Some franchisees have joined networks simply for the

systems and the training, and have no real intention of

running the franchise as a business… they just want the

skills and knowledge to take away and apply themselves at a

later stage – which is why I say BE VERY WARY of someone

who is running an existing similar business but is failing, and

wants to come to you. Study their motives carefully. Do they

really want to ‘join’ you, or are they just struggling and

looking for a quick fix?

Now you might think it’s a silly idea to buy into a franchise,

(what a waste of money) to do that and not be prepared to

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operate it properly, but others will be more than happy to

make that ‘investment’ to get the training and the know‐

how. I remember watching one program based on American

‘entrepreneurs’ and there was a rather successful lady on

there who ran a restaurant business. What they quietly told

you was that her husband used to run a (insert name of very

well know international restaurant business) – and I

couldn’t help but think, he (no doubt) joined the franchise,

learned all he could, showed or taught his wife who applied

it to her own business and made an amazing success of it. He

then left his franchise owned business and helped her to

focus on her restaurant business. This isn’t ‘illegal’.

If his wife was already running a restaurant business and he

wanted to do something for himself, and he declared this to

the franchise at the offset, and they knew … then technically

speaking, he hasn’t broken any legal agreement. And if he

didn’t set up a restaurant in immediate competition to them

when he left his franchise, then he’s still within the law.

Does your contract say that the franchisees spouse must not

be running a similar type of business? Maybe it should, if

you think this could be an issue. Some people play the long

game. Perhaps they’re not married (yet), and they met their


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future spouse AFTER they joined your franchise. You can’t

really take a franchise off him or demand his/her partner

stop working because it’s a potential conflict of interest!

(But you can try)! Or write that as a clause into your

contract. A franchise solicitor can advise on this.

Issues

Generally, ‘in the beginning’ everything is normally great.

You will be spending a lot of time ‘investing’ in the

franchisees – especially the first few, so they may get a lot of

your personal time and attention which later franchisees

may not receive. Normally, new franchisees will listen to

what they’re told and they’ll follow the rules. However,

general issues tend to pop up after a while. They are (in no

particular order) often due to familiarity breeding contempt.

Royalty fee – resentment

In the beginning (and I know I say this a lot, but it’s like a

honeymoon period – it wears off!), the royalty isn’t normally

an issue. The franchisee will accept it because they can see

what they’re getting and the initial support and training is

usually gratefully received… but after a while of paying this,

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they may come to resent having to ‘share’ their dinner

(profits) with you because as far as they’re concerned, they

are doing all the work, and you are just sitting there

‘sponging’ off them.

Rarely, do they see the fact that you have invested in them,

and that this royalty is simply a reward to you, of helping

them generate business that they wouldn’t have otherwise

been able to generate!

You’ll know if royalties are becoming an issue if they

suddenly stop, slow down, or just are generally withholding

them from you. You need to talk about any underlying issues

of resentment. And if you can get your royalties automated

from the beginning – some sort of monthly recurring fee set‐

up, then as soon as a payment is missed, you’ll immediately

know that you have a potential problem on your hands.

Time – they (think) they know more than you

Over time, as the franchisee runs their business, learns the

ropes and becomes increasingly confident (and competent),

they may begin to feel as though they don’t need you, and

that they can do it all by themselves! Again, the importance


115

of communication must be highlighted here. It’s a good idea

to have a company newsletter. In which you highlight

success stories, and national activities that you as the

franchisor are doing. Include press releases and new

product development stories. You never ever want your

franchisee to think that they can do this without you!

You must always be showing them how much you are doing

for them (for you both), behind the scenes, by reinvesting

resources into the business. And if you want to be open with

the financials and how their royalties are being spent, that

can help to encourage confidence if they see that there is a

‘pot’ that is looking after them, and you aren’t just spending

all the royalties on yourself. But even if you were (spending

all the royalties on yourself), it is your prerogative to do so!

You must never let your relationship get so comfortable that

they disrespect your hard work and efforts. You deserve

those royalties.

Complacency – they get lazy

The franchisee may have joined your franchise with an

income target in mind. Met it (exceeded it even), and now

they’re complacent. They may not try harder. They’ll just

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cruise along. And this can be an issue for the franchisor who

may think that a certain territory isn’t being fully exploited

because the franchisee is just sitting on it, and not doing

much.

There are a few ways around this. At renewal time, you

wouldn’t let them renew it. You could set targets for each

area (sales figures or customer numbers), at the start of the

territory being allocated, so that they would know what is

expected of them. Or, you could just simply buy it back off

them and put someone else in there if you didn’t think that

they were performing at their optimum. It all depends on

what your contract says.

Competent experienced franchisees

Some franchisees that join you from the off‐set may stay

with you for two or three terms. The longer they are with

you, the more they will come to understand your business.

As the relationship evolves, some may feel they need to

branch off, but others could be ripe for more development.

They may want to take on another unit (maybe at a sharp

discount), or they may want to take on more responsibility

in general. The way to keep this relationship alive and


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fruitful is to ask them what they want. Regular surveys for

feedback are important. They may want to sit on the

management board or be part of a ‘franchisee panel’ that are

consulted on major decisions – and there’s nothing wrong

with a franchisee taking a keen interest in the business and

in its future.

However there is a thin line and you must always make sure

that they know and respect your decision as final. Feedback

is welcome, but you will make the final decision. You don’t

mind the input and the feedback, but you want them to

always know that you are running the business. Good, loyal,

long term franchisees are an asset to any business and you

don’t want to lose them.

Take care

If franchisees do leave – there is a resale opportunity. Just

like a share in a part‐ownership housing project, the housing

association has a database of interested parties that it can

market the flat to, or the owner of the flat can go out and

find a buyer for themselves. It’s much the same with a

franchise. Obviously, you don’t want just any buyer – you

want someone who will follow the systems, and there will be

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a cost involved in training the new incoming franchisee into

your methods and systems.


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15

Final Thoughts How to franchise your business

We’ve looked at what is franchising, the different ways you

can possibly grow your business and why franchising may

be the best option. We’ve looked at why people buy into a

franchise – and what you as the franchise owner need to

offer them, for your business to be attractive because no

doubt there are similar alternatives on the market. We

looked at creating a pilot operation to test your concept, the

operations manual (how to draw one up, the possible

contents), the potential financials of the operation,

marketing the franchise, selecting your franchisees and the

franchise contract.

Taking all of the above into account, if you still want to do

this then start with the pilot operation. You will need at least

one willing ‘guinea pig’ who will know that they’re a guinea

pig and you can prove your concept. As this is all going on,

it’s worth continuing to run your own company unit, as well

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as observe, get feedback, make changes as you go along to

the operations manual wherever necessary.

You will need the operations manual ready (version 1) in

order to start your pilot, as this will also act as the basis for

the training program. You need to develop a training

program. Think about the period of time needed, what you

need to cover. Will it be 10 days straight? Will it be over a

period of time? What is the best way to train someone in

your method? Will it be practical? Can they do part of it at

home? Will it involve shadowing?

You need to launch the pilot, test what works, measure the

results, tweak what you need to and record the outcomes –

the good, the bad and the ugly. The whole piloting exercise

could take up to a year.

In the meantime as all of this piloting is going on, you need

to be researching the market for franchises like your own.

Who is out there? What do they offer? How long have they

been going? How many franchises have they sold? What sort

of training do they give? What promises do they make their

franchisees? Are they fulfilling these promises? What is the


121

term of the contract? What is the upfront joining fee? What

do they charge for the royalty?

Using your findings, write a business plan for the franchise

business. Estimate the set up costs, how many franchises

you need to sell to break even, look at who can write the

contract and what the costs will be, who can do territory

mapping and the costs for this, creating a new website which

is expandable to add new franchisees to it and add

timescales. The franchise business is a new business within

itself. Seek legal advice and speak to your accountant, think

about the business vehicle, but it may be worth setting up a

completely new and separate limited company for this

enterprise.

Legal and Intellectual Property Issues

Think about whether the logos, brand name and proprietary

systems are trademarked by the franchise company or

another entity. The Franchisor’s Intellectual Property does

require protection. Use a suitably qualified Intellectual

Property solicitor for this. Consider the long term plans –

and whether international expansion is an idea, and in what

country your trademark will be protected.

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In addition consider what internet domain names will be

required and take steps to acquire them – particularly the

.com version (if you don’t have it already). The objective

here is to protect the brand being developed and avoid

cyber squatting. All purchased domain names should be

redirected to the domain name that will be used to market

and develop the brand nationally and internationally. It’s not

recommended to publish different content on each site as

over time it will become a challenge to maintain. Plus it will

dilute the value of the brand and increase marketing costs.

As you are working on the business plan, start marketing the

franchise. Attend trade shows, start looking in franchise

magazines, attend a few meetings and seminars and get a

feel for the business and market, the competitors and the

industry in general. Always bearing in mind that this is a

completely new and separate entity and business

opportunity from the company owned outlet.

Create a new organisational chart of who will be the key

players in the franchise operation. You will need a CEO, a

Franchise Manager, and a Marketing Assistant. Draw the

family tree (organisational structure). Give each function on

the tree a job title, a person specification and a job


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specification. Even if you name is in every single role to

begin with – that’s fine. It gives you an outline as to who to

look for when the time is right to grow the business beyond

you. You will want to get a Franchise Manager in place to

help do the legwork of attending exhibitions etc., and to be

following up with the leads which your marketing will now

be generating.

Give each role a salary and start looking at the cashflow or

the finance you’ll need to raise, to get the business going.

Develop relationships with banks so that they’re familiar

with the business model. Some have special franchising

departments. This will speed up the process of approving

loans to franchisees seeking to finance their new business.

Decide on territories. What is the best way to divide up the

territories that you will allocate? Get some mapping or

territory assistance done. Get the franchise contract done. A

good franchise lawyer can usually be found at your law

society. They may ask for the contents page of the

operations manual.

Be very clear in your mind as to who the ideal franchisee

might be and select accordingly against set criteria. Choose

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your franchisees carefully. Don’t rush! Outline and stick to

the process of application, interview and choosing who you

want to work closely with for the next five or more years

carefully. And make sure that you get the franchise

infrastructure in place so that your business can grow with

your network.

You can always start the process off, and if you need help,

consultancy and support along the way then do contact your

local franchise association body who will no doubt have a

long list of consultants who can help you to franchise your

business successfully. They’ll be able to offer direction and

encouragement and even introduce you to key decision

makers within the Franchise Industry.

Thank you for reading the book. Good luck with the

franchising. Do let me know of your success stories at

[email protected].


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APPENDICES Appendix 1 – Financial Modelling Franchisor

Use the example below. Input your own assumptions to create your own financial model.

Initial Set up costs

Step 1: Look at Appendix 4 and cost each phase Eg: Your costing Feasibility Study £ 4,800 Strategy & Management £ 7,000 Operating System £ 5,600 Legal £ 4,000 Company Internet & Marketing Collateral/Strategy £ 5,000 Recruitment Process £ 7,200 Training & Support £ 4,200 Franchisor Support £ 2,400 £ 40,200 Step 2: Decide on your Franchise Cost Eg: Franchise Cost: e.g. £9,475 ____________ Step3: Calculate the Break even point: Set up Costs = £40,200 = 4.2 ___________ = ______ Franchise Fee £9,475 The end result is, you will have to sell approx 4 franchises to ‘break even’ and recuperate the cost of franchising your business.

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Read below, to see the assumptions made, to estimate these costs. Note that in reality, the ‘initial set up costs’ may actually COST you less in hard currency – but you will pay in ‘time’ instead. As time is money, it’s all been factored in. Assumption 1 – the rate paid is £25 per hour, there are 8 hours per day, and the estimated days for each part of ‘setting up’ the franchise initially have been estimated at £200 per day. Take this as a guide, and use it to adapt to your circumstances to figure out the real cost of franchising your business.

Phase One: COST Days COST Days

Feasibility Study Initial Review & Audit of Your Business

1,000 5

Competitor Analysis: Franchise & non Franchise Systems

1,000 5

Decide on investment needed to improve Corporate Image & Infrastructure (for example: Company Internet Site, IT/Customer Relationship Management System, etc.)

400 2

Financial Modelling: Franchisor & Franchisee Forecasts

1,000 5

Defining/Clarifying the Franchise Offering

600 3

Confirm cost from 3 rd party providers for: territory mapping, legal, etc

400 2

Develop Project Plan 400 2

4,800


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Phase Two: COST Days COST Days

Strategy & Management Develop Detailed Franchise Business Plan factoring in:

Territory Mapping 4,000 20

Finalised Initial and On‐Going Royalty Fee Structure for various levels

1,000 5

Hiring/assigning existing staff member to support development of Franchise

2,000 10

Operating System Design & Preparation of franchisor Operations Manual: Outlining the support to be provided to the franchisees

600 3

Design & Preparation of franchisee Operations Manual: Company Description, Equipment/Administration/Insurance Requirements, Operating Procedures, Accounting Procedures, Pricing Policy, Sales & Marketing Procedures, Standard Forms, Company Directory, etc.

5,000 25

Legal Advise on Protection of Intellectual Property: Company Name, Logo/Patents, Trademarks, Domain Names, etc.

2,000 10

Draft Franchise Agreement defining Terms between Franchisor & Franchisees

2,000 10

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Company Internet & Marketing Collateral/Strategy COST Days COST Days Redevelopment of Company Internet Site

1,400 7

Adding Franchisee Recruitment Materials to Company Internet Site

400 2

Design & Preparation of Franchisee Prospectus & other Advertising/Marketing Collateral

1,000 5

Implement Marketing & PR Strategy: Traditional & Social Media

2,000 10

British Franchise Association Provisional Registration

200 1

21,600

Phase Three:

Recruitment Process Develop Franchisee Lead Generation Strategy

400 2

Hiring or Assigning Existing Staff Member to be Franchisee Development Manager

1,000 5

Defining Preferred Franchisee Profile

400 2

Defining Franchisee Recruitment & Selection Process

600 3

Design & Preparation of Franchisee Business Plan (should they need to seek bank funding)

800 4

Managing Recruitment process from initial contact through to contract signing

4,000 20


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COST Days COST Days

Training & Support Design & Preparation of Franchisee Training Program

1,400 7

Coaching & Mentoring of Franchisees

2,000 10

Development of Ongoing Support Programme for Franchisees including: Intranet Site, Monthly Calls, Annual Conference, etc.

800 4

11,400

Phase Four:

Franchisor Support Assistance with Monitoring the first 12 Franchisees

1,200 6

Growth Management (namely ongoing advice from people who have done it before)

1,200 6

2,400

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Calculating Ongoing Royalties – from franchisor

perspective

Deciding upon how to cost the franchise (possibly based on

recuperating the initial franchise outlay costs) quickly, is

one thing, but on an ongoing basis, the royalties generated,

need to support the ongoing costs of operating the franchise.

Step 1: Calculate the ongoing costs of operating the

franchise. Example – annual estimate

Example Estimate

Franchise Area Manager £ 26,000

Franchise Recruitment

Manager £ 26,000

Office costs £ 24,000

£ 76,000

Step 2: Set the royalty rate.

If you then set the royalty at ‘10%’ – the target annual

turnover from your franchisees will be £760,000 minimum

(that’s your fixed costs of £76,000 x 10).


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Step 3: Calculate the sale turnover goal per franchisee.

If you have ‘8’ franchisees in your network, then your

managers’ goal, will be £95,000 per franchise unit (£760,000

divide by 8).

This is all JUST TO BREAK EVEN.

Step 3: Calculate the expected franchisee annual sales

turnover figure.

If, an average franchisee is expected to be able to turnover

“£60,000” (and you’ll know the figure from your business

model and how your pilot did) – and your terms are 10% of

the sales turnover, then you need to aim to have £76,000

(fixed costs) divided by £6,000 (average expected royalty) =

12.6 franchisees in your network – to break even each year.

These figures are just looking at the costs from a franchisors

perspective. If they work, great. If not, it’s then worth

calculating royalties from a franchisee perspective, and then

cutting our cloth accordingly.

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Calculating Ongoing Royalties – from franchisee

perspective

Let’s assume every franchisee can do at least £12,000 in

sales turnover every year.

Step 1: Take the turnover “£12,000” and times that by the

royalty set e.g. 8% (£12,000 x 8%) = £960 – gives you a

figure to work with.

Step 2: We then immediately take out “10%” and use this

for advertising the franchise nationally (£960 x 10%) = £96 ‐

(£960 ‐ £96 = £864).

Step 3: Set aside a further 10% for ‘profits’ ‐ (£960 x 10%) =

£96 and another 10% for ‘contingency’ – this leaves: £960 –

(3 x 96) = £672.

Step 4: The remainder is what is used for the ‘Franchise

Manager salary’. At “£24” per hour, we can get (£672 divide

by 24) = 28 hours per annum. We could divide this into ‘4’

and say that every quarter, the franchisee gets around 1 day

of the franchise managers time – undivided attention to

work with them on their business.


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Or, we could split this £672 differently. We could allocate

some of this ‘budget’ to training (group) and less 1‐2‐1 time.

It all depends on how many people are in the network,

where they are based, and what their needs are.

The purpose of franchising isn’t about just sitting back and

collecting royalties (although no doubt many would like

that). Royalties need to be reinvested back into the business

for running costs, marketing the franchise to get more to

join, supporting the franchisees that do join to perform

better and improving upon business systems.

Once the initial start‐up costs have been recuperated (in our

example above this is £40,200 (recuperated after 4

franchisees paying approx £9,475 to join)…. Then we need

to remember that franchisee number 5, when they join, that

£9,475 fee is literally all yours!!

For this reason, you may wish to play with the figures…

Things to Think About

When carrying out your competitor analysis, you need to

decide where to position yourself in regards to everyone

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else. Do you want to be the cheapest? Or the most

expensive? Remember that pricing conveys a perceived

value.

Your strategy might be to go in high (£9,475) – and

recuperate your initial set‐up costs quickly with 4

franchisees, and perhaps drop the price later. Not

necessarily to be recommended because you don’t want to

foster annoyance with the initial franchisees who paid more.

That said, the first few franchisees will probably get a lot

more of your personal time than the later ones do, so you

can always justify a price drop with that. But, you don’t want

to send a mixed message to the marketplace. There’ll be

people out there who ‘think’ about joining your franchise for

years. You don’t want to project a message that you’re

desperate for joiners (so you’ve dropped the price!)

Or, you may think that going in low (£4,750) and selling 8

franchises will be better. Once you’ve sold your eight, you

have now recovered your initial start‐up costs, and now you

can increase the fee. Remember, the more franchisees in

your network, the more value that network has… so you’d

certainly be justified in raising the price. However,

experience has certainly taught me it’s just as much effort to


135

sell at “£5k” as it is at “£10k” (if not more!) and

unfortunately because the lower price is more affordable to

many, you may well increase your number of enquiries, but

not necessarily your number of sales, so don’t be too keen to

drop the price. Your offer has value, and your franchisees

need to find the money to take part. This is why bank loans

and having banking contacts with access to finance who can

assist them with the initial start up cost is very important.

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Appendix 2 – Financial Modelling Franchisee

Use the example below. Input your own assumptions to

create your own financial model for the franchisees business

plan. Remember, the figures need to work for both parties.

You may want to build various “scenarios” for your

franchisees, so that they have an idea of what might be

possible with your system. Not everyone is the same. Some

may do remarkably well, other just ‘average’ – so it’s useful

to have ‘best case’ scenarios – just to inspire them a little.

Never ‘exaggerate’ claims. Make sure than the figures are

based on what you or your pilot has experienced.

You may want to use some of your illustrated figures in your

prospectus, because prospective franchisees always want to

know what their earning potentials are.

Estimate of Costs to establish & run your

franchise

Be clear in your own mind, exactly WHAT the franchisee will

get as part of their initial joining fee, and what will be extra.

Bearing in mind (and also lets assume) that the franchisee


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has absolutely no clue of what it takes to run your type of

business – you must be very clear on what they will need, so

that the can make a true full assessment of what they’ll need.

Example – Bookkeeping franchise

What is included in the franchise fee:

Initial training (3 days, full time)

Accounting software (QuickBooks desktop)

Initial starting materials (be specific)*

* The Starter pack includes: 1000 business cards & 500

letterheads, printed operations & marketing manual, 100

brochures, 1000 complimentary slips, 5000 postcards and

other start up documents.

Whatever you include, needs to be ‘enough’ for them to start

up. Think about what you need to run your business type,

cost it up, and get quotes. This information will affect the

franchise joining fee that you set.

It’s important to state assumptions at all points. Tell them

what they will need e.g. a printer, a laptop with a

spreadsheet software e.g. Excel, internet, a mobile phone

etc.,

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Establishing Costs may / may not include:

BNI /other business networking annual

membership £700

Office Equipment (laptop with software e.g.

Microsoft Office, back up & anti virus) £800

Fax / Copier / Printer / Scanner £200

Insurance Premium (Professional Indemnity,)

Public Liability) £200

Total Costs per annum: £1,900

Ongoing Running Costs may / may not include:

• Office salaries, rent, telephone £7,800

• Marketing, Printing & stationery £5,300

• Travel, Fuel, Vehicle maintenance £2,000

• Bank Charges £120

• Membership to professional bodies £200

Total Costs per annum: £15,420

Income Potential Scenarios

The following are estimates and are based on current

bookkeeping performance from experience. One would

expect to covert around 60% of leads. The ABC Franchise

Head Office will pass leads on, and the franchisee


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themselves will have a number of referrals and self‐

generated leads.

Assumptions:

Sales are £17per hour

Bookkeepers wages is £9 per hour

Training is £40 per hour

In your area this may be more/less, but the overall ratio will

be similar. Therefore, the majority of the sales income, is

from bookkeeping service sales. Training rates are generally

double the normal rate, and thus are a good source of

income.

Many franchisees can charge more (depending on the area

of the country). We do encourage franchisees to negotiate a

fixed fee for services. Suggested price guides is an area

covered in the training.

Scenario One:

A part time bookkeeper charging 12 – 15 hours per week:

‐ 6 clients per month ‐ £9,588 pa (6 clients x £17ph x 2

hrs pw x 47 wks)

‐ With training (2 day pm) – (6hr days x 2 pm X £40ph

x 12) ‐ £5,760 pa – Making a total £15,348 per year

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‐ 9 clients per month ‐ £11,985 per year

‐ With training (2 day pm) : £17,745 per year

Scenario Two:

A full time business owner charging 20 to 30 billable

hours per week:

‐ 10 clients per month ‐ £19,975 pa ÷ 47 wks ÷ 17 =

25 hrs

e.g. Could be 5 clients x 5 hrs pw; or 10 clients x 2 ½ hrs pw –

but the idea, is billing for 25 hours per week.

‐ With training (1 day pm): £22,855 pa

‐ With training (2 days pm): £25,735 pa

Scenario Three:

A full time business owner charging 35 billable hours per

week plus 35 casual staff:

Income – 25 clients per month.

Potential Earnings £63,000 pa (not including ongoing costs

– management service charge)

e.g. £210 per client pm (12.3 hrs) total hrs: 12.3 x 25 = 307 ½

hrs pm

35 x 4.2 = 147 billable hours pm for the business

owners [307.5147=160.5] plus 160.5 hrs pm for casual


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staff. 160.5 pm ÷ 4.2 = 38.2 hrs per week… over 3 staff

– that’s 3 staff doing 12.8 (2 days) per week

‐ 35 clients per month

Potential Earnings £94,500 pa (not including ongoing costs

– management service charge)

‐ 50 clients per month

Potential Earnings £141,000 pa (not including ongoing

costs – management service charge)

Other assumptions:

The working year is 47 weeks per year

The time, income and skills one has, will vary during the

time.

Earnings Potential

Step 1: Decide what is included in the franchise fee.

Step 2: Calculate what is not included – items and costs.

Step 3: Decide on what the ongoing costs are to ‘run’ the

business.

Step 4: Develop ‘3’ earnings scenarios for the franchisee (as

above), so that they can decide what they want to aim for. In

this example above, it’s suggested that there are 3 ways to

run a ‘bookkeeping service business’ – the first way is part

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time, the second way is full time by yourself, and the third

(more profitable way) is full time with staff, or at least 3

scenarios – best case, worst case, average case – to give the

some idea of what is possible.

What you can then do, is put these cases onto a spreadsheet

which you can then send to them, so that they can

experiment with the numbers themselves.

Example – 5 year forecast (which basically takes all of the

scenarios into account) – following on from the example

above: Year 1 Year 2 Year 3 Year 4 Year 5 Bookkeeping sales & training 28,000 42,000 63,000 94,500 141,750 Credit Charges ‐ late payers 12 18 27 41 61 Bank Interest Received 4 6 9 14 20 Software 520 780 1,170 1,755 2,633 28,536 42,804 64,206 96,309 144,464

Purchases

Software for resale 390 585 878 1,316 1,974

Royalty – 8% ABC 2,240 3,360 5,040 7,560 9,923

Assumptions:

The franchisee starts slowly – working in the

business themselves, before taking on staff in year 2


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Interest and credit charges – low, due to low interest

rate environment

Sell 2 accounts software per annum at a 25% profit

ABC takes an 8% royalty, which drops to 6% when

the turnover is over £100,000

Figures increase by 50% per year

Year 1 was what the pilot achieved

Expenses Year 1 Year 2 Year 3 Year 4 Year 5

Gross wages 14,364 21,546 32,319 48,479 72,718 Office salaries ‐ 2,808 5,616 8,424 11,232 Rent 104 104 1,040 1,300 1,560 Telephone 1,080 1,080 1,080 1,080 1,080 Travel & Entertainment 600 600 600 600 600 Printing & Stationery 300 300 300 300 300 Professional Fees 500 500 500 500 500 Marketing 1,500 3,000 5,000 6,250 7,500 Bank Charges & Interest 120 120 120 120 120 Bad Debts 560 840 1,260 1,890 2,835 General Expenses 520 520 520 520 520 Training Costs 300 300 300 300 300 Insurance 225 338 506 759 1,139 Refreshments & Kitchen 520 520 520 520 520 Membership ‐ professional bodies 190 190 190 190 190 ‐ ‐ ‐ ‐ 23,513 36,711 55,789 80,108 113,011

PROFIT / SALARY FOR FRANCHISEE

5,023

6,094

8,417

16,201

31,453

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Assumptions:

Staff are paid at £9ph which included holiday pay

Office salaries is 1 day per week at £9ph, starts in

year 2, does 3 days in year 3, 18 hours pw in year 4

and 24 hours per week in year 5

An allowance for Bad Debts is set at 2% of turnover

Note that with these example figures, IF the franchise fee

was £9,475, then it would mean that the franchisee would

(using the profit) take approx 2 years to recuperate their

investment.

That’s not to say that they wouldn’t have ‘earned’ anything,

because if they were working IN the business, invoicing

clients for the work that they’ve done, in year 1 they would

have drawn a salary of approx £14,000 and in year 2 it’d be

around £21,000. IF the franchisee had loan of ‘£10,000’ to

start up to invest in this business, then this sales forecast

shows that they would comfortably be able to afford the

loan repayments from the profits.

Remember, out of the SALES TURNOVER, we (the

franchisor) take a percentage for royalties. This is what we

use to run the franchise operation.


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The Franchisee need to pay the expenses for running their

business (including paying themselves a salary), plus have

some ‘profit’ left over.

When you present various sales forecast scenarios to the

franchisee (in the meeting), its then up to them to decide

whether or not they feel the investment is worth it. They’re

likely to compare it to what they’re earning now, and also to

compare it to what they might be able to do, should they ‘go

it alone’ without a franchise.

Your offer must be attractive. It’s not just the potential

earnings capacity that a potential franchisee is considering,

it’s the help, the support, the training, the know‐how, the

reduced risk, the brand, the safety of the company umbrella.

Joining your franchise should always add more value to

them, then the price you charge. It has to be deemed ‘worth

it’.

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Appendix 3 – Franchise Contract

DATED THE 3RD DAY OF JULY 2016

‐‐‐‐‐‐‐‐‐‐‐‐

Between:

ABC LIMITED

and

PARTY 2

AND

[NAME OF INDIVIDUAL]

BOB JONES

FRANCHISE AGREEMENT


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CONTENTS

1. Interpretation 149 2. Rights granted 153 3. Term Error! Bookmark not defined. 4. Fees Error! Bookmark not defined. 5. Representations and warranties 156 6. Franchisor's initial obligations 156 7. Franchisor's continuing obligations 156 8. Franchisee's obligations 157 9. Employees 158 10. Training 158 11. Accounting records 159 12. Advertising 159 13. Insurance 159 14. Intellectual property 160 15. Sale of business 161 16. Death or incapacity of individual 162 17. Confidentiality 163 18. Termination 163 19. Consequences of termination 165 20. Restrictions 165 21. Individual's guarantee and covenants 166 22. Entire agreement 168 23. Further assurance 168 24. Indemnity 168 25. Data protection 168 26. Assignment 170 27. Third party rights 170 28. No partnership or agency 170 29. Set‐off 171 30. Default interest 171 31. Severance 171 32. Variation 171 33. Waiver 172 34. Expert 172 35. Alternative dispute resolution 172 36. Counterparts 173 37. Notices 173 38. Governing law and jurisdiction 173

Schedules

Schedule 1 The Trade Marks

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FRANCHISE SCHEDULE

Details of Franchisee [Name] of [registered address of company] or [sole trader’s address] Bob Jones 18 St. Annes Street | Brighton BN5 58E

Details of Individual [Name] of [residential address] Bob Jones 18 St. Annes Street | Brighton BN5 58E

Initial Term of Franchise 5 (five) years from Start Date: 3rd July 2016

Initial Fee £9,475 plus VAT in two equal instalments – first payment due on 4th July 2016, the second payment due on 4th October 2016.

Management Fee

6% on invoices the Franchisee Services themselves. Plus the Gross cost of bookkeeping staffs salaries (if any)

Payment Schedule

Invoices raised from 1st – 31st on Month 1, will be payable by the Franchisor to the Franchisee by the 5th of Month 3. All Bookkeeping staff are paid directly, monthly by the 25th.

Territory

Brighton


149

THIS FRANCHISE AGREEMENT is dated 4th July 2016 BETWEEN:

(1) ABC LTD a company incorporated in England whose registered office is at registered office address: 230 Anytime Avenue, London, EC1V 2YY and (hereinafter referred to as “the Franchisor”);

(2) [FULL FRANCHISEE NAME] incorporated and registered in [COUNTRY OF INCORPORATION] with Franchisee number [NUMBER] whose registered office is at [REGISTERED OFFICE ADDRESS] Franchisee as set out in the details of the Franchise Schedule; and

(3) [NAME] of [ ADDRESS] Individual as set out in the details of the Franchise Schedule.

BACKGROUND

(A) The Franchisor, as a result of practical business experience, has developed the Business, which is carried on under the Trade Name.

(B) The Franchisor has built up a reputation and goodwill in the Trade Name, which is associated with high standards of service. The Franchisor is the exclusive owner of all rights in the Trade Marks.

(C) The Franchisor has developed specialised Services to be used in the Business.

(D) The Franchisor is the owner of Intellectual Property rights in the System.

(E) The Franchisor has the Trade Marks which are associated with Services.

(F) The Franchisee wishes to acquire from the Franchisor the right and franchise to operate the Business in accordance with the terms of this agreement.

AGREED TERMS

1.1 The definitions and rules of interpretation in this clause apply in this agreement. Business: the business of providing bookkeeping and associated services to the small to medium‐sized business sectors, carried on using the System.

1 Interpretation

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Client: a person who engages the Franchisee to provide Services under a Client Agreement. Client Agreement: the agreement entered into between a client and the Franchisee engaging the Franchisee to provide the Services to the client on such terms which shall be substantially in the form as set out in the Manual. Confidential Information: any information which is disclosed to the Franchisee by the Franchisor pursuant to, or in connection with, this agreement (whether orally or in writing and whether or not such information is expressly stated to be confidential), or which otherwise comes into the hands of the Franchisee in relation to the Business, the Franchisee's Business, the System, the Services other than information which is already in the public domain (otherwise than as a result of a breach of any obligation of confidentiality).

Disclosed: fully, accurately, clearly and fairly disclosed (with sufficient details to identify the nature and scope of the matter disclosed) that may affect or relate to a warranty under Clause 5 of this agreement including any information provided to the Franchisee prior to or at the time of signing of this agreement.

Existing Client: a person who is a client of the Franchisee prior to the date of this agreement and who has consented to the Franchisee continuing to provide the Services under this agreement within three(3) months of the date of this agreement.

Expert: a person appointed in accordance with clause 34.

Financial Package: the finance and accounting software package to assist the Franchisee in its bookkeeping and record keeping requirements which may be updated or changed from time to time in the sole and absolute discretion of the Franchisor’s as it deems necessary for the Business subject to Clause 4.3 below;

Franchisee's Business: the Business as carried on by the Franchisee under this agreement within the Territory.

Franchise Schedule: the schedule providing the specific details of the agreement between the parties as set out in the schedule entitled “Franchise Schedule” which maybe varied, amended or modified from time to time by the parties in accordance with the terms of this agreement.

Gross Monthly Sales: the gross turnover of the Franchisee's Business in respect of the Services supplied by the Franchisee in each month of the Term starting on the Start Date, excluding all value added tax and without deducting any sales rebates or discounts and determined in accordance with clause 0.

Initial Fee: the sum of £[franchise fee] plus VAT payable in accordance with clause 4.set out in the Franchise Schedule.

Initial Term: the term referred to in clause 3.1 the Franchise Schedule.

Intellectual Property: patents, rights to inventions, copyright and related rights, trade marks, trade names and domain names, rights in get‐up, rights in


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goodwill or to sue for passing off, rights in designs, rights in computer software, database rights, rights in confidential information (including know‐how and trade secrets) and any other intellectual property rights, in each case whether registered or unregistered and including all applications (or rights to apply) for, and renewals or extensions of, such rights and all similar or equivalent rights or forms of protection which may, now or in the future, subsist in any part of the world relating to the Services, Business and the System, owned by the Franchisor and acquired by the Franchisor from time to time.

Management Fee: [ %] of the Gross Monthly Sales payable by the Franchisee to the Franchisor in accordance with clause 4.4 or £[amount], whichever is the higher.the fee payable as set out in the Franchise Schedule.

Manual: the manual setting out the operations and procedures for running the Business compiled by the Franchisor, as updated from time to time by the Franchisor which may be made available in CD format, hard copy or provided by online access.

Products: the Financial Package and all other items that are referred to in the Manual.

Renewed Term: any term of this agreement following a renewal under the provisions of clause 0.

Restricted Business: any business of the Franchisor or any other franchisee of the Franchisor that is similar to the Franchisee's Business.

Restricted Customer: any firm, company or person who, during the 12 (twelve) months prior to the date of termination of this agreement, was a customer of the Franchisee.

Services: the specialised services developed by the Franchisor to be used in, or supplied by, the Franchisee's Business as described in the Manual.

Start Date: the date following the completion of the training referred to in Clause 10 or such earlier date as the parties may agree.

Stationery: all letterheads, invoices, order forms and other documents approved by the Franchisor from time to time to be used by the Franchisee for the purpose of the Franchisee's Business including any flyers and promotional material bearing the Trade Marks.

System: the distinctive business format and method developed and implemented by the Franchisor in connection with the Business using the Intellectual Property, Confidential Information, operational procedures, methods, management, marketing and advertising techniques part of which are contained in the Manual.

Term: the Initial Term of this agreement and any Renewed Term under clause Error! Reference source not found..

Territory: the United Kingdomarea that the Franchisor has agreed to grant a franchise to the Franchisee as set out in the Franchise Schedule.

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Trade Marks: the trade marks and service marks set out in {xxx} and any other trade marks registered by the Franchisor in relation to the Business from time to time during the Term. Trade Name: the name “ABC”, under which the Business is carried on. Training Fee: the fee payable for the initial training required under Clause 10 of £[amount] plus VATany additional ongoing training that the Franchisee may require as set out in Clause 4.2. VAT: value added tax chargeable under the Value Added Tax Act 1994 and any similar replacement or additional tax. 1.2 Clause, schedule and paragraph headings shall not affect the interpretation of this agreement. 1.3 A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality) [and that person's legal and personal representatives, successors and permitted assigns]. 1.4 The Schedules form part of this agreement and shall have effect as if set out in full in the body of this agreement. Any reference to this agreement includes the Schedules. 1.5 Words in the singular shall include the plural and vice versa. 1.6 A reference to one gender shall include a reference to the other genders. 1.7 A reference to any party shall include that party's personal representatives, successors or permitted assigns. 1.8 A reference to a statute, statutory provision or subordinate legislation is a reference to it as it is in force from time to time, taking account of any amendment or re‐enactment and includes any statute, statutory provision or subordinate legislation which it amends or re‐enacts; provided that, between the parties, no such amendment or re‐enactment shall apply for the purposes of this agreement to the extent that it would impose any new or extended obligation, liability or restriction on, or otherwise adversely affect the rights of, any party.

1.9 A reference to a statute or statutory provision shall include any subordinate legislation made from time to time under that statute or statutory provision.

1.10 A reference to writing or written includes faxes and e‐mail except where provided to the contrary.

1.11 Documents in agreed form are documents in the form agreed by the parties and initialled by or on behalf of them for identification.

1.12 A reference to a document is a reference to that document as varied or notated (in each case, other than in breach of the provisions of this agreement) at any time.


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1.13 References to clauses and schedules are to the clauses and schedules of this agreement; references to paragraphs are to paragraphs of the relevant schedule.

1.14 Any phrase introduced by the terms including, include, in particular or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms. Where the context permits, the words other and otherwise are illustrative and shall not limit the sense of the words preceding them.

1.15 Any obligation in this agreement not to do something includes an undertaking not to permit that thing to be done.

In consideration of the payments agreed to be made in clause Error! Reference source not found., the Franchisor grants the Franchisee a non‐exclusive licence to:

(a) operate the Franchisee's Business; and

(b) use the Intellectual Property in respect of the Franchisee's Business;

in accordance with the System, within the Territory, during the Term and in accordance with the provisions of this agreement.

3.1 The Initial Term of the agreement is [five (5)] years from the Start Date (is [five (5)] years from the Start Date (may be subject to earlier termination in accordance with clause 18)). 3.2 The Franchisee may, by notice in writing to the Franchisor, give not less than six months before and not more than eight months before the end of the Initial Term or any Renewed Term, request the term of this agreement to be renewed for a period of five (5) years after the end of the Initial Term or any Renewed Term. If the Franchisor intends to renew this Agreement, the Franchisor shall, by notice in writing to the Franchisee, give not less than four months before the end of the Initial Term or any Renewed Term, accepting a renewal of the term of this agreement, if: (a) at the end of the Initial Term, there are no outstanding material breaches by the Franchisee or the Individual of this agreement and there are no grounds on which the Franchisor has a right to terminate this agreement under clause 18; and (b) the Franchisee and Individual have at all times performed their obligations under this agreement to the reasonable satisfaction of the Franchisor and the Franchisee's Business meets the Franchisor's requirements as set out in the Franchisor's then current form of franchise agreement and Manual.

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3.3 Any renewal under this clause 3 shall be effected either by confirmation in writing signed by or on behalf of the parties or, if required by the Franchisor, by the parties entering into a new agreement, which shall be in the Franchisor's then current form of franchise agreement, provided that, on such renewal: (a) the Franchisee may be liable to pay the Initial Fee (or the equivalent of it under the new agreement); (b) the Franchisor will not be under any obligation to perform the obligations under clause 5 or any equivalent obligations under the new agreement; and (c) the provisions of clause 3.2 and clause 3.3, or any equivalent provisions under the new agreement, shall apply in the Renewed Term. 3.4 Unless the parties agree otherwise in writing, any renewal under this clause 3 shall be without prejudice to any rights or obligations of the parties outstanding at the end of the Initial Term. 3.5 Unless it is terminated earlier under clause 0, this agreement shall terminate at the end of the Term. 3.6 If the Franchisee continues to carry on the Franchisee's Business after the end of the Term, but without having agreed a Renewed Term with the Franchisor, then it will be deemed to do so on the terms and conditions of this agreement (or any agreement entered into by the parties under clause 0), save that the Franchisor will be entitled to terminate this agreement on giving to the other three (3) months’ written notice of termination.

4.1 On the date of this agreement, the Franchisee shall pay the Initial Fee. The Initial Fee shall cover all the Franchisor's obligations under clause 6 which shall include: (a) the Financial Package subject to Clause 4.3 below; (b) initial Stationery agreed to be provided as part of the Initial Fee; (c) a customer relationship manager software package free for one year from the date of this Agreement and monthly charges shall apply following the first anniversary of this Agreement and a customer relationship manager software package free for one year from the date of this Agreement and monthly charges shall apply following the first anniversary of this Agreementany initial training courses that the Franchisee shall be required to undertake; and (d) a contacts page on the nationally recognised website of the Franchisor’s, when available. The 4.2 f the Franchisee requires any ongoing training or additional training, the Franchisee shall pay to the Franchisor the Training Fee at least 30 (thirty) days prior to the date of training. The Training Fee shall be at the prevailing prices at the date of training. 4.3 The Franchisor may, in its sole and absolute discretion, charge for any upgrades or changes to the Financial Package provided and/or require renewal fees to be paid by the Franchisee on an annual basis for the Financial Package provided. The Franchisor further reserves the right to change the Financial

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Package either in part or in whole where it considers it necessary for the effective management of the Franchisee’s Business. 4.4 The Franchisee shall pay the Management Fee monthly in arrears, with effect from the Start Date. The Management Fee shall be paid on the 28th of each month. Unless the Franchisor otherwise notifies the Franchisee in writing, the Franchisee shall make all payments by BACS to the designated account as the Franchisor shall specify from time to time. All fees due under this agreement are exclusive of VAT, which shall, where applicable, be paid by the Franchisee at the prevailing rate on the due date for payment or receipt of the relevant invoice from the Franchisor (as may be).The Franchisee shall submit details of all new clients to the Franchisor within 7(seven) days of the Clients signing the Client Agreement. 4.5 The Franchisee shall submit a statement of the total time that the Franchisee has incurred under each Client Agreement on the 15th and 30th of each month. 4.6 Subject to Clause 4.5, the Franchisor shall invoice and collect all monies due from the Clients under the respective Client Agreement for and on behalf of the Franchisee on a monthly basis. 4.7 Upon successful collection of the monies due under Clause 4.6 above, the Franchisor shall be entitled to deduct the Management Fee due to the Franchisor prior to any remittance of the balance of monies received to the Franchisee subject to Clause 4.10 below. 4.8 In the event that the Franchisor is unable to collect the monies due from any Client, the Franchisor shall be entitled to a reimbursement of any fees and expenses that it incurs in taking such action as is necessary to recover the fees from the Client. Such reimbursement shall be a deduction from any monies collected by the Franchisor. 4.9 Subject to Clause 4.8 below, the Gross Monthly Sales shall be determined as follows: (a) within seven (7) days of the end of each month, the Franchisee shall prepare, and deliver to the Franchisor, a statement of the Gross Monthly Sales for the month; (b) within seven (7) days after the Franchisee has delivered the statement of Gross Monthly Sales, the Franchisor shall either confirm in writing that it agrees with the statement or give notice that it does not; (c) if the Franchisor does not agree with the statement, the parties shall endeavour to resolve all matters in dispute as soon as practicable. If they fail to do so within 14 days of the notice, either party may refer the dispute for resolution to an Expert appointed under clause 34; and (d) any payment, additional payment or refund to be made as a result of any decision of the Expert shall be made within 14 days of receipt by the parties of the decision of the Expert. 4.10 [For the initial two year period starting from the date of this Agreement (“the Initial Period”),Notwithstanding Clause 4.8 above, the Franchisor agrees that the Gross Monthly Sales will be calculated from sales to new clients or sales

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of new services to existing Existing clients Clients of the Franchisee as of the date of this Agreement. For the avoidance of doubt, Gross Monthly Sales for the Initial Period Term shall not include any services provided to existing Existing clients Clients of the Franchisee prior to the date of this Agreement which continue to be provided by the Franchisee during that Initial Period.] 4.11 Each party shall bear its own legal costs and any other professional fees relating to this Agreement.

5.1 Each party warrants to the other parties that, in entering into this agreement and the documents, it does not rely on any statement, representation, assurance or warranty of any person (whether a party to this agreement or not) other than as expressly set out in this agreement or those documents. 5.2 The Franchisee and the Individual shall be deemed to have knowledge of the information which is Disclosed or otherwise provided to it and/or its agents and/or advisers and shall be deemed to have knowledge (actual, constructive or imputed) of all matters relating to this franchise and agreement, or which could have been discovered (whether by investigation made by the Franchisee and the Individual or made on its behalf), and shall not be entitled to make any claim there under based on such information. 5.3 The Franchisee and the Individual agrees that any information Disclosed or supplied by the Franchisor or any of the franchisees of the Franchisor or by or on behalf of any of the employees, directors, agents or officers of the Franchisor and any of its existing franchisees (Officers) to the Franchisee, the Individual or their advisers in connection with the Warranties, shall not constitute a warranty, representation or guarantee as to the accuracy of such information in favour of the Franchisee. 5.4 The Franchisor is not liable for any claim to the extent that the claim : (a) relates to matters Disclosed; or (b) relates to any matter specifically and fully provided for in the accounts by the Franchisor or any of the Officers.

The Franchisor shall within a reasonable period provide: (a) general advice on how to set up the Franchisee's Business; (b) training to the Franchisee in the operation of the System as set out in Clause 10 below; (c) a copy, on loan, of the Manual; and (d) the Financial Package on the terms of the licence set out in the Manual.

The Franchisor shall at all times during the Term either itself or through a supplier authorised by the Franchisor: (a) provide the Franchisee with such know‐how, advice and guidance relating to the Business as it thinks fit;

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(b) provide email support backed by a telephone helpline during normal business hours in connection with any problems in the System and “normal business hours” shall mean 9.30am to 5pm on a business day which shall exclude public holidays, Saturdays and Sundays; (c) update the Manual and System from time to time and inform the Franchisee of all such updates; (d) supply the Products and Stationery to the Franchisee subject to availability, on the Franchisor's standard terms and conditions applicable at the date of placing the order and assist the Franchisee in obtaining the Products and Stationery from third parties on the best available terms.

The Franchisee shall start trading on the Start Date or such other date as the parties shall agree and, at all times during the Term, in relation to the Franchisee's Business shall: (a) operate the Franchisee's Business in accordance with the Manual and highest standards and not do anything that could bring the Business into disrepute or damage the reputation of the Business; (b) obtain the necessary certification from the Institute of Certified Bookkeepers or an equivalent qualification which is of a standard acceptable to the Franchisor within a reasonable period or as soon as it is practicable and shall maintain this certification at all times on a regular basis; (c) use its best endeavours to promote and extend the Business; (d) provide all services on the basis that time is of the essence; (e) devote the whole of its time and attention to the Franchisee Business except where the Franchisor has given prior written consent to operate another non‐competing business; (f) obtain, maintain and comply with all necessary licences and consents and comply with all relevant legislation in relation to the Intellectual Property and the Franchisee's Business; (g) obtain and maintain such business and professional indemnity insurance shall be required to operate the Franchisee Business as required under Clause 13 below, a copy of which shall be provided to the Franchisor annually ; (h) use its best endeavours to protect and promote the goodwill in the Business; (i) only use Stationery and Products which are supplied by the Franchisor or a (j) supplier that has been approved in writing by the Franchisor; (j) supply services to end users only on the standard terms and conditions of sale set out in the Manual and not on any other terms and conditions; (k) comply with ordering, invoicing and accounting procedures as required by the Franchisor and set out in the Manual; (l) not offer credit except in the ordinary course of business to customers without the prior written consent of the Franchisor; (m) pay all third party suppliers promptly in accordance with the terms of supply agreed with them and not enter into any arrangement or agreement to factor, charge or otherwise deal with the debts of the Franchisee's Business without the prior written consent of the Franchisor;

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(n) not licence any other person to operate the Business under the Trade Name; (o) without delay, inform the Franchisor of any improvement or modification to the Business or System or business opportunity which comes to its attention; (p) promptly give the Franchisor any information that the Franchisee may obtain in relation to potential sales or any matter that could affect sales favourably or unfavourably for the Franchisor and/or any of its franchisees;; (q) supply the Franchisor with such information relating to the Franchisee's Business in such form and at such times as the Franchisor may from time to time require; (r) introduce any improvements or modifications into the Franchisee's Business when requested by the Franchisor; (s) at the request of the Franchisor, provide potential franchisees with information as reasonably requested; (t) attach any notices that the Franchisor requires to Stationery; (u) comply with the Business Names Act 1986, the Companies Act 1986 and the Companies Act 2006 (and all legislation replacing them), and give such notices in such places as the Franchisor may require to the effect that the Franchisee is operating the Franchisee's Business under licence from the Franchisor.

In relation to the Franchisee's employees who are engaged in the Franchisee's Business, the Franchisee shall, at all times during the Term employ sufficient number and quality of employees to fulfil its obligations under this agreement.

10.1 The Franchisor shall: (a) provide an initial training programme for the Individual and the Franchisee shall procure that the Individual shall train any employees it may have to work in the Franchisee’s Business; and (b) provide further training programmes for the Individual and such number of the Franchisee's employees at such cost as the Franchisor shall determine when the Franchisee may reasonably require. Such training shall take place at such time and place as the Franchisor shall specify. 10.2 The Franchisee shall: (a) not start the Franchisee's Business until the Individual referred to in clause 0 have, in the reasonable opinion of the Franchisor, successfully completed the initial training ; (b) not allow any employee to work in the Franchisee's Business until they have, in the reasonable opinion of the Franchisor, successfully completed training; (c) if any employee does not successfully complete training, ensure that such training is repeated until it has been successfully completed; (d) ensure that all employees attend such further training as the Franchisor may reasonably require. Such training shall be charged for by the Franchisor at such cost and shall take place at such time and place as the Franchisor shall specify.

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The Franchisee and/or its appointed accountant shall: (a) maintain records of all sales and Gross Monthly Sales and submit to the Franchisor a statement of them on the 7th 15th and 30th day of each month. Such records and statement shall be in the form approved by the Franchisor; (b) deliver to the Franchisor a copy of the full annual accounts of the Franchisee which shall include, without limitation, the profit and loss statements and balance sheets of the Franchisee Business, within six months of the relevant accounting year end; (c) deliver a letter of confidence in a format to be provided by the Franchisor which has to be issued and signed by the Franchisee’s appointed accountant; (d) retain its accounting and financial records for at least six years after the end of any accounting year to which those records relate; (e) allow representatives of the Franchisor to enter the Premises and investigate the Franchisee's records and take copies of the Franchisee's accounts and records on reasonable notice, during usual business hours during the Terms and for a period of six years after the termination of this agreement; and (f) supply to the Franchisor copies of all VAT returns (if any) and any other financial and fiscal information which the Franchisor may reasonably request.

12.1The Franchisor shall: (a) promote the Trade Name and Business in the UK in such manner and at such times as it shall in its absolute discretion think fit; and (b) provide the Franchisee with such promotional literature as it, in its absolute discretion, thinks fit from time to time. 12.2 The Franchisor shall promote and advertise the Franchisee's Business in the Territory in accordance with the Manual and the Franchisor's instructions using any materials supplied by the Franchisor and co‐operate with the Franchisor in relation to any special promotion or advertising campaign as the Franchisor may require.

13.1 The Franchisee shall take out and maintain an all‐risk insurance policy with a reputable insurance company (or companies) with such amount of cover as the Franchisor may, in its absolute discretion, require from time to time. Such policy (or policies) shall include: (a) liability for employees and third parties; (b) public liability; (c) professional indemnity cover; (d) loss of profits and interruption of the Franchisee's Business; and (e) any other cover which the Franchisor may, in its absolute discretion, specify. 13.2 The Franchisee shall not breach, or allow any breach of, such policies. 13.3 The Franchisee shall provide the Franchisor with copies of all such policies and renewals.

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13.4 The Franchisee shall promptly pay all premiums for such policies and immediately provide the Franchisor with evidence of payment of premiums. 13.5 If the Franchisee fails to take out and maintain such policies, the Franchisor may do so and the Franchisee shall reimburse the Franchisor for all costs and expenses incurred in doing so.

14.1 The Franchisor warrants that it is not aware of any reason why it might not be entitled to license the Intellectual Property and why the use of the Intellectual Property by the Franchisee in accordance with the terms of this agreement would constitute an infringement of any third party's intellectual property. 14.2 The Franchisee shall be granted a non‐exclusive licence to use the Trade Marks and Trade Names of the Franchisors and shall, at all times, comply with any conditions on that licence that may be imposed by the Franchisor from time to time. 14.3 The Franchisee acknowledges that: (a) it does not have any right, title or interest in the Intellectual Property or any updates or improvements to it, save as specifically set out in this agreement, the Manual and any licences granted with respect to the Trade Marks and Trade Names; and (b) any goodwill (and any other rights) in the Trade Marks which result from the use by the Franchisee of the Trade Marks shall vest in the Franchisor. 14.4 If the Franchisee learns of any threatened or actual infringement of the Intellectual Property, or of any circumstance which suggests that the use of the Intellectual Property may infringe the intellectual property of a third party, it shall immediately inform the Franchisor, giving all such details as the Franchisor requests. 14.5 The Franchisor shall have conduct of any proceedings relating to the Intellectual Property and may take whatever action it, in its sole discretion, decides in respect of any infringement or alleged infringement of it, or arising from its use. Any rights that the Franchisee has under section 30 of the Trade Marks Act 1994 are excluded. The Franchisee shall co‐operate with the Franchisor in taking such action and the Franchisor shall meet any reasonable expenses of the Franchisee in doing so. 14.6 The Franchisee shall: (a) not apply for registration of any of the Intellectual Property (or any intellectual property that is confusingly similar to the Intellectual Property) in its own name, in any part of the world; (b) comply with the Manual and all requests by the Franchisor as to the use of the Intellectual Property and the © and ® symbols in relation to the Intellectual Property; (c) give assistance to enable the Franchisor to register its Trade Marks; (d) not license (or purport to license) any other person to use any of the Intellectual Property; (e) not use the Intellectual Property other than as specifically permitted by this agreement (once it comes into effect) and the Manual;

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(f) not use any intellectual property that is confusingly similar to the Intellectual Property; (g) not do anything that may adversely affect the Intellectual Property or the Franchisor's right or title to it; and (h) immediately stop using any advertising or promotional material or packaging on receipt of a request by the Franchisor to do so.

15.1 The Franchisee shall not sell, transfer or otherwise dispose of part or all of the Franchisee's Business to a third party purchaser (or purchasers), unless it has first served notice on the Franchisor of its intention and offered to sell the Franchisee's Business to the Franchisor for the same amount and on the same terms as any bona fide offer from such third parties. 15.2 Where the Franchisee has a bona fide offer from a third party purchaser (or purchasers), it shall submit to the Franchisor copies of all proposed purchaser's written offer[s], together with such additional information as to the offer and the proposed purchaser[s] as the Franchisor may, in its absolute discretion, require. 15.3 The Individual shall not and shall procure that his other partners who are shareholders in the Franchisee shall not, at any time during the Term, sell, transfer or otherwise dispose of any shares in the Franchisee, and shall procure that the Franchisee shall not issue any new shares other than to the existing shareholders in proportion to their existing share holdings, unless: (a) the Individual has first served notice on the Franchisor of its intention and offered to sell all of his shares to the Franchisor, and procures that the members of his family who are shareholders in the Franchisee offer all of their shares in the Franchisee; or (b) the Franchisee has first served notice on the Franchisor of its intention and first offered all such new shares to the Franchisor, for the same amount and on the same terms as any bona fide offer from a third party purchaser (or purchasers). 15.4 If the Franchisor gives notice of acceptance of the offer referred to in clause 15.3 within 28 days of receipt of the notice of offer, the Individual or the Franchisee (as may be) shall sell, and the Franchisor shall buy, such shares on such terms and the sale and purchase shall be completed within twenty‐eight (28) days of the receipt of the acceptance of the offer, or, if later, immediately following ascertainment of the purchase price in accordance with clause 15.2 or such later date as those parties shall agree. 15.5 If the Franchisor does not give notice of acceptance of an offer to buy the Franchisee's Business or the shares within 28 days of receipt of the notice of offer, the offer shall expire and the Franchisee or the Individual (as may be) shall be free, within three (3) months of such expiry, to sell, transfer, issue or otherwise dispose of part or all of the Franchisee's Business or shares in the Franchisee to any single third party, subject to the prior written consent of the Franchisor (such consent not to be unreasonable withheld, conditioned or delayed) if the following conditions have been complied with:

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(a) the Franchisee and the Individual have both substantially complied with all the terms and conditions of this agreement; (b) there are no subsisting [material breaches of this agreement; (c) the prospective franchisee which, in the case of a limited Franchisee, includes its shareholders and directors meets the Franchisor's current minimum standards with respect to prior business experience, financial standing and recruitment criteria; (d) the Franchisee agrees to pay the Franchisor's reasonable costs of investigation, whether or not the sale goes ahead; (e) all monies due to the Franchisor have been paid; (f) the proposed Franchisee has entered into a new franchise agreement with the Franchisor on its then current terms and conditions for a period of not less than the outstanding Term of this agreement, save that the proposed Franchisee shall not be obliged to pay a sum that is equivalent to the Initial Fee but shall reserve the right to charge the Training Fee if the Franchisor considers it necessary and the Franchisor shall not be required to perform any obligations that are equivalent to those set out in clause 5, for which the Franchisor will be paid at its then current rates by the Franchisee. 15.6 If the Franchisor consents to the sale of such shares or the Franchisee's Business in accordance with clause 0, the Franchisor is appointed by the Franchisee and the Individual, and may act for them as non‐exclusive agent for the sale of the Franchisee's Business or shares in the Franchisee respectively and the Franchisee or the Individual (as may be) shall procure that the proposed purchaser pays the full purchase price to the Franchisor or its solicitors, as agent for the Franchisee (or Individual, as may be). The Franchisor may deduct from it any sums which are payable, or may become payable, by the Franchisee or the proposed Franchisee to the Franchisor and a [10% (ten per cent)] fee and its expenses for this service and shall instruct its solicitors accordingly. The balance shall be remitted to the Franchisee (or Individual, as the case may be) within fourteen (14) days of such receipt.

16.1 If the Individual dies during the Term, his personal representatives shall, within three months of his death, inform the Franchisor of his death, and offer to sell the Individual's shares in the Franchisee to the Franchisor. In such circumstances, the terms of clause 0, clause 15.4, clause 15.415.5 and clause 15.515.6 shall apply as if references in them to the “Individual” were to the Individual's personal representatives and “the third party purchaser” were the Franchisor or such third party as the Franchisor may elect to sell the franchise to and the “Franchisee” shall mean either the beneficiary or beneficiaries of the shares in the Individual's will, or under the rules on intestacy, or, if such beneficiaries do not want to become the registered holder of such shares, any other third party specified in the notice by the personal representatives. 16.2 In the event of the death of the Individual or if the Individual is, in the reasonable opinion of the Franchisor, unable to a material degree to operate the Franchisee's Business to the standard required by the Manual, the Franchisor may appoint a manager of the Franchisee's Business who shall have full powers

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to operate the Franchisee's Business and to take all steps to ensure that the Franchisee complies with the terms of this agreement at the expense of the Franchisee until such time that the Franchisor is able to sell the franchise and/or Clause 16.1 shall be deemed to apply.

17.1 The Franchisee and the Individual undertake that they shall not at any time during and following the termination of this agreement, copy, use or disclose to any person any Confidential Information, except as permitted by this agreement. 17.2 The Franchisee and Individual may disclose Confidential Information: (a) to the employees, officers, representatives or advisers of the Franchisee who need to know such information for the purposes of carrying out its obligations under this agreement. The Franchisee and Individual shall ensure that the employees, officers, representatives or advisers of the Franchisee to whom the Confidential Information is disclosed comply with this clause 17; and (b) as may be required by law, court order or any governmental or regulatory authority. 17.3 No party shall use the Confidential Information for any purpose other than to perform its obligations under this agreement.

18.1 The Franchisor may terminate this agreement with immediate effect (or following such notice period as it sees fit) without prejudice to any of its rights or remedies, by giving written notice to the Franchisee and the Individual if: (a) the Franchisee or Individual fails to pay any amount due under this agreement on the due date for payment and remains in default not less than seven days after being notified in writing to make such payment; or (b) the Franchisee or Individual commits a material breach of any term of this agreement (other than failure to pay any amounts due under this agreement) and (if such breach is remediable) fails to remedy that breach within a period of 14 days after being notified in writing to do so; or (c) the Individual or the Franchisee's employees fail to successfully complete the initial training referred to in clause 10; or (d) the Franchisee does not start trading by the Start Date; or (e) the Franchisee or Individual repeatedly breaches any of the terms of this agreement in such a manner as to reasonably justify the opinion that its or his conduct is inconsistent with having the intention or ability to give effect to the terms of this agreement; or (f) the Franchisee or Individual gives to the Franchisor any false or misleading information, or makes any misrepresentation in connection with obtaining this agreement or during the Term, in connection with the Franchisee's Business; or (g) persistent, valid complaints continue to be made to the Franchisor about the quality of the service provided by the Franchisee and the Franchisee, having received notice of such complaints, fails to improve such service to the reasonable satisfaction of the Franchisor; or

17 Confidentiality

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(h) the Franchisee or the Individual, in the reasonable opinion of the Franchisor, does, or permits to be done, any act which might jeopardise or invalidate the registration of the Trade Marks or does any act which might assist, or give rise to, an application to remove the Trade Marks, or which might prejudice the right or title of the Franchisor to the Trade Marks; or (i) the Franchisee or the Individual purports to assign any of the rights or licences granted under this agreement; or (j) the Franchisee fails to obtain any written approval or consent of the Franchisor as expressly required by this agreement; or (k) the Franchisee or Individual suspends, or threatens to suspend, payment of its debts or is, or is deemed to be, insolvent (in the case of the Franchisee), bankrupt (in that case of the Individual), unable to pay its or their debts as they fall due for payment, or admits inability to pay its or their debts OR deemed unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 (in the case of the Franchisee); or (l) the Franchisee or Individual commences negotiations with all or any class of its or their creditors with a view to rescheduling any of its or their debts, or enters into any composition or arrangement with its or their creditors generally; or (m) an order is made, a resolution is passed, or a notice is issued convening a meeting for the purpose of passing a resolution, or any analogous proceedings are taken, for the winding‐up, administration or dissolution of the Franchisee; or (n) the Individual is the subject of a bankruptcy petition or order; or (o) any liquidator, trustee in bankruptcy, receiver, administrative receiver, administrator or similar officer is appointed over, or in respect of, the Franchisee or Individual or any part of its or their business or assets; or (p) a creditor or encumbrancer of the Franchisee or the Individual attaches or takes possession of, or a distress, execution, sequestration or other such process is levied or enforced on or sued against, the whole or any part of its or their assets and such attachment or process is not discharged within 14 days; or (q) any event occurs, or proceeding is taken, with respect to the other party in any jurisdiction to which it is subject that has an effect equivalent or similar to any of the events mentioned in clause 0 to clause 0 (inclusive); or (r) the Franchisee suspends or ceases, or threatens to suspend or cease, to carry on all or a substantial part of the Franchisee's Business; or (s) subject to clause 16, the Individual dies or, by reason of illness or incapacity (whether mental or physical), is incapable of managing his or her own affairs or the court has made an order or appointed a deputy under section 16 of the Mental Capacity Act 2006 in respect of the Individual; or (t) there is a change of control of the Franchisee; or (u) the Individual is convicted of a serious criminal offence. 18.2 The parties acknowledge and agree that any breach of clause 2, clause 8, clause 14, clause 15, clause 17 shall constitute a material breach for the purposes of this clause.


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19.1 Any termination or expiry of this agreement shall not affect any rights or liabilities that have accrued prior to such termination. 19.2 On termination or expiry of this agreement for any reason, the Franchisee and the Individual shall: (a) immediately pay the Franchisor the full amount of all sums due from the Franchisee to the Franchisor together with any interest payable in accordance with clause 30; (b) cease to operate the Franchisee's Business and System and to trade under any of the Trade Marks, and not hold the Franchisee out as a franchisee of the Franchisor or do anything that may indicate any relationship between them and the Franchisor; (c) immediately stop using the Intellectual Property, including the Trade Marks; pass all enquiries, and full details of potential customers, to the Franchisor; (e) give all customer lists and full details of contracts with customers to the Franchisor; (f) cease to use the Financial Package and other software supplied to the Franchisee by the Franchisor, and return (without copying) all elements of it, including all software, hardware and documentation relating to it; (g) return all copies of the Manual, Stationery, and other Products or materials bearing the Trade Marks; (h) pay all debts owing to creditors of the Franchisee's Business; (i) cease to use the telephone numbers and not make or receive any telephone calls, faxes or e‐mails in connection with the Business, and take all steps that the Franchisor requires to transfer all listings of the telephone numbers in any directory to the Franchisor or as it may direct; and (j) assign to the Franchisor all domain name registrations and rights in web site content owned or used by the Franchisee in the Franchisee's Business. 19.3 If the Franchisee fails to fulfil its obligations under this clause 19 within a reasonable time, the Franchisor may, at the expense of the Franchisee, immediately and without notice, enter onto the Franchisee's premises and take such steps as it thinks fit to fulfil any outstanding obligations.

20.1 In order to protect the Confidential Information, trade secrets and business connections of the Franchisor and the Franchisor's other franchisees, the Franchisee and the Individual covenant with the Franchisor that they shall not: (a) during the Term or for twelve (12) months after termination or expiry of this agreement, solicit or endeavour to entice away from the Franchisor or any other franchisee of the Franchisor the business or custom of a Restricted Customer with a view to providing goods or services to that Restricted Customer in competition with any Restricted Business; or (b) during the Term or for twelve (12) months after termination or expiry of this agreement, in the course of any business concern which is in competition with or similar to the Business or any other franchisee of the Franchisor or any Restricted Business, offer to employ or engage, or otherwise endeavour to entice

19 Consequences of termination

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away, any employee of the Franchisor or any other franchisee of the Franchisor or who could materially damage the interests of the Franchisor or any other franchisee of the Franchisor, and with whom the Franchisee or the Individual dealt in the twelve (12) months prior to termination of this agreement; or (c) during the Term, or for twelve (12) months after termination or expiry of this agreement, be involved as agent, consultant, director, employee, owner, partner or shareholder with any business concern which is (or intends to be) in competition with any Restricted Business in the Territory; or (d) during the Term, or for twelve (12) months after termination of this agreement, be involved with the provision of goods or services to (or otherwise have any business dealings with) any Restricted Customer in the course of any business concern which is in competition with any Restricted Business; or (e) at any time after termination of this agreement, represent himself as connected, in any way, with the Franchisor. 20.2 None of the restrictions in clause 20.1 shall prevent the Franchisee or Individual from: (a) being engaged or concerned in any business concern insofar as their duties or work relate solely to geographical areas where the business concern is not in competition with any Restricted Business; or (b) being engaged or concerned in any business concern, provided that their duties or work relate solely to services or activities of a kind with which they were not concerned to a material extent in the twelve (12) months prior to termination of this agreement. 20.3 The restrictions imposed on the Franchisee and the Individual by this clause 20 shall apply to them acting: (a) directly or indirectly; and (b) on their own behalf or on behalf of, or in conjunction with, any firm, Franchisor or person. 20.4 Each of the restrictions in this clause 20 is intended to be separate and severable. If any of the restrictions are held to be void, but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective.

21.1 In consideration of the Franchisor entering into this agreement with the Franchisee, the Individual, as primary obligor, irrevocably and unconditionally as separate and independent obligations: (a) guarantees the full, prompt and complete performance by the Franchisee of each of its obligations under this agreement e; (b) guarantees the punctual payment of all sums payable by the Franchisee under this agreement or in consequence of any breach of the provisions of this agreement; (c) undertakes, immediately on demand, to perform or procure the performance of all the Franchisee's obligations referred to in clause 21.1(a) and clause 21.1(b); and (d) undertakes to pay to the Franchisor, immediately on demand and unconditionally, such sum to make good all losses, damage, costs and expenses

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arising out of the Franchisee's failure to perform such obligations, or pay such sums on the due date, or the Individual's failure to comply with the provisions of clause 21.1(a), clause 21.1(b) and clause 21.1(c). 21.2 Before making a demand under clause 21.1, it shall not be necessary for the Franchisor to have made a demand on, taken out proceedings against, or taken any action to enforce any security against the Franchisee or any other person. 21.3 The Individual's liability under this clause 21 shall not be reduced, discharged or adversely affected in any way, by: (a) any unenforceability, invalidity, irregularity, frustration or discharge by operation of law of any of the Franchisee's obligations under this agreement; or (b) any legal limitation, disability, incapacity or other circumstances relating to the Franchisee or any other person; or (c) the Franchisor compromising, varying, extending, dealing with, renewing, releasing, refusing or neglecting to perfect or enforce any right, remedy or security against the Franchisee or any other person in respect of this agreement or any other document or security; or (d) anything which, but for this provision, might discharge, reduce or extinguish any of the Individual's liabilities under this clause 21.1 21.4 The Individual's guarantee is a continuing guarantee and shall continue in effect until the Franchisee has paid and performed all sums and all obligations under this agreement. 21.5 The Individual shall not, until all of the Franchisee's obligations under this agreement have been finally performed and paid in full, exercise any right: (a) of subrogation and indemnity; or (b) to take the benefit of, share in or enforce any security or other guarantee or indemnity for any of the Franchisee's obligations; or (c) to prove in the liquidation of the Franchisee, other than in accordance with the Franchisor's instructions. 21.6 If the Individual exercises any of the rights referred to in clause 0, he shall: (a) hold any amounts recovered on trust for the Franchisor; and (b) pay them to the Franchisor on demand. 21.7 During the Term, the Individual shall: (a) procure that the Franchisee performs all its obligations under this agreement; (b) devote his full time attention and effort to the Franchisee's Business; (c) be a director of the Franchisee; and (d) hold, in his own name, more than 50% of the issued voting capital of the Franchisee. During the Term of this agreement, the Individual may not divest his shareholding resulting in a loss of majority control without the prior written consent of the Franchisor. 21.8 The Individual may not assign or transfer any of his rights or obligations under this agreement.

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22.1 This agreement constitutes the whole agreement between the parties and supersede[s] any previous arrangement, understanding or agreement between them relating to the subject matter of this agreement. 22.2 If there is a conflict between the terms of this agreement and the Manual, or any other documents, the terms of this agreement shall prevail. 22.3 Each party agrees and undertakes to the other parties that the only rights and remedies available to it arising out of, or in connection with, this agreement or its subject matter shall be solely for breach of contract, in accordance with the provisions of this agreement. 22.4 Nothing in this clause shall limit or exclude any liability for fraud.

The Franchisee and Individual shall each (and shall use all reasonable endeavours to procure that any necessary third party shall) (at their own expense) promptly execute and deliver all such documents, and do all such things, as the Franchisor may, from time to time, reasonably require for the purpose of giving full effect to this agreement.

The Franchisee shall indemnify the Franchisor against any loss, cost, or expense incurred by the Franchisor arising from any act, neglect or default of the Franchisee, its agents, employees, licensees or customers.

25.1 The Franchisee agrees that it shall, in relation to personal data processed in connection with this agreement (Franchise Data): (a) process the Franchise Data in accordance with the Data Protection Act 1998 (1998 Act) and any other applicable data protection legislation; (b) process the Franchise Data only so far as is necessary for the purpose of performing its obligations under this agreement; (c) pay such fees as are necessary to the data protection officer; (d) not disclose Franchise Data to or allow access to it other than by employees or third parties engaged by the Franchisee to perform the obligation imposed on the Franchisee by this agreement, and ensure that such employees or third parties are subject to written contractual obligations concerning the Franchise Data which are no less onerous than those imposed on the Franchisee by this agreement; and (e) use all reasonable efforts to assist the Franchisor to comply with such obligations as are imposed on the Franchisor by the 1998 Act. This includes the obligation to: (i) provide the Franchisor with reasonable assistance in complying with any subject access request served on the Franchisor under section 7 of the 1998 Act; (ii) promptly inform the Franchisor about the receipt of any subject access request received by the Franchisee;

22 Entire agreement

23 Further assurance

24 Indemnity

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(iii) not disclose or release any Franchise Data in response to a subject access request without first consulting with and obtaining the consent of the Franchisor; and (iv) inform any individual whose personal data may be processed under this agreement (including prospective customers as well as those with whom the Franchisee enters into contracts) of such processing. This includes informing such individuals that, on the termination of this agreement, personal data relating to them (including personal data contained in any customer list) shall be retained by or, as the case may be, transferred to the Franchisor. In addition, the Franchisee shall obtain any necessary consents for such processing under the 1998 Act. To ensure that the Franchisor's obligations under the 1998 Act are complied with, the Franchisee agrees to allow the Franchisor to approve and, if the Franchisor deems necessary, amend any such notice. 25.2 Process and processing mean obtaining, recording or holding personal data or carrying out any operation or set of operations on the personal data, including: (a) organisation, adaptation or alteration; (b) retrieval, consultation or use; (c) disclosure by transmission, dissemination or otherwise making available; and (d) alignment, combination, blocking, erasure or destruction. 25.3 Insofar as the Franchisee acts as a person or organisation which processes personal data on behalf of a data controller (Data Processor), or on behalf of the Franchisor in relation to the Franchise Data, the Franchisee agrees to comply with the obligation placed on the Franchisor by the seventh data protection principle (Seventh Principle) set out in the 1998 Act, which shall include: (a) maintaining technical and organisational security measures sufficient to comply at least with the obligations imposed on the Franchisor by the Seventh Principle; and (b) only processing Franchise Data for and on behalf of the Franchisor for the purpose of performing its obligations under, and in accordance with, this agreement and only on written instructions from the Franchisor to ensure compliance with the 1998 Act. 25.4 The Franchisee agrees to provide the Franchisor with contact details of the Franchisee or at least one employee for the Franchisor to provide in relation to enquiries about the Franchisee and to display on the Franchisor's website. The Franchisee agrees to ensure that, for this purpose, any notices and/or consents required for the Franchisor to comply with the 1998 Act shall be provided to or acquired from such employee[s] by the Franchisee on behalf of the Franchisor. 25.5 The Franchisee shall indemnify the Franchisor against all claims and proceedings and all liability, loss, costs and expenses incurred by the Franchisor as a result of any claim made or brought by an individual or other legal person in respect of any loss, damage or distress caused to them as a result of the Franchisee's unauthorised processing, unlawful processing, destruction of and/or damage to any Franchise Data processed by the Franchisee, its employees or agents.

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25.6 In this clause data controller and personal data shall have the same meanings as set out in the 1998 Act.

26.1 This agreement is personal to the Franchisee and the Individual, who, subject to clause 15 and clause 16 may not, without the prior written consent of the Franchisor (such consent not to be unreasonably conditioned, withheld or delayed), assign, transfer, mortgage, charge, declare a trust of, sub‐contract, delegate or deal in any other manner with: (a) this agreement or any of their rights and obligations under it [(or any document referred to in it); or (b) the Franchisee's Business, or purport to do any of the same. 26.2 The Franchisor may, at any time, assign (absolutely or by way of security and in whole or in part), transfer, mortgage, charge or deal in any other manner with the benefit of any or all of any other party's obligations or any benefit arising under this agreement. 26.3 If there is an assignment pursuant to clause 26.2: (a) the Franchisee and Individual may discharge their obligations under this agreement to the Franchisor until they receive written notice of the assignment; (b) the assignee may enforce this agreement as if it were a party to it, but the Franchisor shall remain liable for its obligations under this agreement; (c) the liability of the Franchisee and Individual to any assignee cannot be greater than their liability to the Franchisor; (d) notwithstanding clause 0, the Franchisor may disclose to a proposed assignee any information in its possession that relates to this agreement or its subject matter, the negotiations relating to it and the other party which is reasonably necessary to disclose for the purposes of the proposed assignment; and (e) any disclosure pursuant to clause 0 shall only be made after notice of the identity of the proposed assignee has been given to the Franchisee and Individual. 26.4 Each party to this agreement is acting on its own behalf and not for the benefit of another person.

A person who is not a party to this agreement shall not have any rights under or in connection with it by virtue of the Contracts (Rights of Third Parties) Act 1999 except where such rights are expressly granted by clause 26, but this does not affect any right or remedy of a third party which exists, or is available, apart from that Act.

Nothing in this agreement is intended to, or shall be deemed to, constitute a partnership or joint venture of any kind between any of the parties, nor

26 Assignment

27 Third party rights

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constitute any party the agent of another party for any purpose. No party shall have authority to act as agent for, or to bind, another party in any way except as expressly provided in clause 0.

29.1 All amounts due under this agreement from the Franchisee to the Franchisor shall be paid in full without any deduction or withholding other than as required by law. The Franchisee shall not be entitled to assert any credit, set‐off or counterclaim against the Franchisor in order to justify withholding payment of any such amount in whole or in part. 29.2 The Franchisor may, at any time or times, without notice to the Franchisee, set off any liability of the Franchisee to the Franchisor against any liability of the Franchisor to the Franchisee, in either case, whether under this agreement or otherwise and whether any such liability is present or future, liquidated or unliquidated. Any exercise by the Franchisor of its rights under this clause shall be without prejudice to any other rights or remedies available to it under this agreement or otherwise.

30.1 If the Franchisee fails to pay any amount payable by it under this agreement, the Franchisor may charge the Franchisee interest on the overdue amount. The Franchisee shall pay the interest immediately on demand, from the due date up to the date of actual payment, after as well as before judgment, at the rate of five per cent (5%) per annum above the base rate for the time being of Barclays Bank. Such interest shall accrue on a daily basis and be compounded quarterly. 30.2 The Franchisor reserves the right to claim interest under the Late Payment of Commercial Debts (Interest) Act 1998.

31.1 If any provision of this agreement (or part of any provision) is found by any court or other authority of competent jurisdiction to be invalid, unenforceable or illegal, the other provisions shall remain in force. 31.2 If any invalid, unenforceable or illegal provision would be valid, enforceable and legal if some part of it were deleted, the provision shall apply with whatever modification is necessary to give effect to the commercial intention of the parties.

No variation, waiver or agreed termination of this agreement or of any document referred to in it shall be effective unless it is in writing and executed by the parties (or their representatives) in the same manner as this agreement.

29 Setoff

30 Default interest

31 Severance

32 Variation

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No failure or delay by a party to exercise any right or remedy provided under this agreement or by law shall constitute a waiver of that (or any other) right or remedy, nor preclude or restrict its further exercise. No single or partial exercise of such right or remedy shall preclude or restrict the further exercise of that (or any other) right or remedy.

34.1 The parties shall agree on the appointment of an independent Expert. 34.2 If the parties are unable to agree on an Expert within seven days of either party serving details of a suggested expert on the other, either party shall then be entitled to request the President for the time being of the Institute of Chartered Accountants in England and Wales to appoint a chartered accountant of repute with experience in the valuation of franchises as Expert. 34.3 The Expert is required to prepare a written decision and give notice (including a copy) of the decision to the parties within a maximum of three months of the matter being referred to the Expert. 34.4 All matters under this clause must be conducted, and the Expert's decision shall be written, in the English language. 34.5 The parties are entitled to make both written and oral submissions to the Expert and will provide (or procure that others provide) the Expert with such assistance and documents as the Expert reasonably requires for the purpose of reaching a decision. 34.6 To the extent not provided for by this clause, the Expert may, in his reasonable discretion, determine such other procedures to assist with the conduct of the determination as he considers just or appropriate, including instructing professional advisers to assist him in reaching his determination. 34.7 Each party shall, with reasonable promptness, supply each other with all information and give each other access to all documentation and personnel as the other party reasonably requires to make a submission under this clause. 34.8 The Expert shall act as an expert and not as an arbitrator. The Expert shall determine the matter referred to him which may include any issue involving the interpretation of any provision of this agreement, his jurisdiction to determine the matters and issues referred to him or his terms of reference. The Expert's written decision on the matters referred to him shall be final and binding in the absence of manifest error or fraud. 34.9 Each party shall bear its own costs in relation to the reference to the Expert. The Expert's fees and any costs properly incurred by him in arriving at his determination (including any fees and costs of any advisers appointed by the Expert) shall be borne by the parties in such other proportions as the Expert shall direct.

35.1 If any dispute arises in connection with this agreement, the parties shall attempt to settle it by mediation in accordance with the CEDR Model Mediation Procedure. Unless otherwise agreed between the parties, the mediator shall be

33 Waiver

34 Expert

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nominated by CEDR. To initiate the mediation, a party shall give notice in writing (ADR notice) to the other part[y] to the dispute requesting a mediation. A copy of the request should be sent to CEDR. 35.2 The mediation shall start not later than 60 (sixty) days after the date of the ADR notice.

This agreement may be executed in any number of counterparts (but shall not be effective until each party has executed at least one counterpart), each of which, when executed and delivered, shall be an original and which together shall have the same effect as if each party had executed and delivered the same document.

37.1 Any notice given under this Agreement may be delivered by hand, or by prepaid first class post (or prepaid airmail if appropriate), to the relevant Party at its address set out at the start of this Agreement (or such other address as that Party may have notified to the other Party in accordance with this Clause 37 for the purpose of receiving notices). 37.2 Any notice given in accordance with this Agreement will be deemed to have been given upon delivery to the relevant address if delivered by hand and two days after posting if sent by first class prepaid post to and from an address in the United Kingdom (or five days after posting if sent by prepaid airmail). 37.3 In proving service by post, it will be sufficient to show that the notice was properly addressed and posted in accordance with this Clause 37.

38.1This agreement, and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non‐contractual disputes or claims), shall be governed by and construed in accordance with the law of England and Wales. 38.2 The parties irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim that arises out of, or in connection with, this agreement or its subject matter or formation (including non‐contractual disputes or claims).

This agreement has been entered into on the date stated at the beginning of it.

Signed by [NAME OF DIRECTOR]

for and on behalf of ABC Limited

36 Counterparts

37 Notices

38 Governing law and jurisdiction

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Signed by [NAME OF DIRECTOR]

for and on behalf of [Franchisee]

Director

Signed by [Individual ]

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Appendix 4 – Franchising Road Map

The overall steps that will need to be taken at each phase to

franchise the business are outlined below in the road map.

Franchising Road Map ACTION PLAN WHO WHEN COST

Phase One: Feasibility Study Initial Review & Audit of Your Business Competitor Analysis: Franchise & non Franchise Systems

Decide on investment needed to improve Corporate Image & Infrastructure (for example: Company Internet Site, IT/Customer Relationship Management System, etc.) Financial Modelling: Franchisor & Franchisee Forecasts Defining/Clarifying the Franchise Offering Confirm cost from 3 rd party providers for: territory mapping, legal, etc Develop Project Plan Phase Two: Strategy & Management Develop Detailed Franchise Business Plan factoring in: Territory Mapping Finalised Initial and On‐Going Royalty Fee Structure for various levels Hiring/assigning existing staff member to support development of Franchise

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WHO WHEN COST Operating System Design & Preparation of franchisor Operations Manual: Outlining the support to be provided to the franchisees Design & Preparation of franchisee Operations Manual: Company Description, Equipment/Administration/Insurance Requirements, Operating Procedures, Accounting Procedures, Pricing Policy, Sales & Marketing Procedures, Standard Forms, Company Directory, etc. Legal Advise on Protection of Intellectual Property: Company Name, Logo/Patents, Trademarks, Domain Names, etc. Draft Franchise Agreement defining Terms between Franchisor & Franchisees Company Internet & Marketing Collateral/Strategy Redevelopment of Company Internet Site Adding Franchisee Recruitment Materials to Company Internet Site Design & Preparation of Franchisee Prospectus & other Advertising/Marketing Collateral Implement Marketing & PR Strategy: Traditional & Social Media British Franchise Association Provisional Registration


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WHO WHEN COST Phase Three: Recruitment Process Develop Franchisee Lead Generation Strategy Hiring or Assigning Existing Staff Member to be Franchisee Development Manager Defining Preferred Franchisee Profile Defining Franchisee Recruitment & Selection Process

Design & Preparation of Franchisee Business Plan (should they need to seek bank funding) Managing Recruitment process from initial contact through to contract signing

Training & Support Design & Preparation of Franchisee Training Program Coaching & Mentoring of Franchisees

Development of Ongoing Support Programme for Franchisees including: Intranet Site, Monthly Calls, Annual Conference, etc.

Phase Four:

Franchisor Support Assistance with Monitoring the first 12 Franchisees Growth Management Ongoing advice from experienced mentors

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Appendix 5 – Expression of Interest Form Example

APPLICATION FOR INTERVIEW YES ABC! I would welcome an opportunity to meet you to discuss owning an ABC Franchise. Full Name: ………………………………………………………………………………… Male / Female

Home Address: ………………………………………………………………………………………………..

………………………………………………………………........... Post Code: ……………………………….

Home Tel No (include STD Code): …..…..…….……. Mobile Tel No……….……...…………..

E‐mail address: ………………………………………………………………………………………………

Date of birth: ……..………….… Marital Status………..………. Dependants:…………………

To which advertisement (if any) are you responding?

How did you first hear about ABC Franchise Ltd ? (Please be specific) ………………..

What is your highest academic qualification? …………………………………………………….

Please state current membership of any Professional Bodies: ……………………………

Current Occupation: ………………………………

Your current income level–(please tick) Up to £25k.… £25‐£40k.… £40‐£60k.…

£60k+pa ….

My previous Business/Commercial/XXXX Experience:

………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………..

If you are currently acting as a freelance XXXX at the moment, approx how many

clients do you have? 1‐5….. 5‐10 ….. 10‐15 ….. 15‐20 ….. 20+ …..

You may need up to a total of £5,000 to start the business and for costs during

the first 12 months. Certain lenders will lend up to 70% of the 1st years

requirement. I have £………………………………………………… cash available to invest.

Will you be raising finance to acquire the Franchise ? Yes [ ] No [ ]

Will this be secured against your own home? Yes [ ] No [ ]

Are you in good health? Yes [ ] No [ ]


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Do you have a current clean driving licence ? Yes [ ] No [ ]

Do you have your own Car? Yes [ ] No [ ]

Have you had experience of employing staff ? Yes [ ] No [ ]

Are you confident you can sell yourself in front of clients? Yes [ ] No [ ]

Do you have a personal computer at home? Yes [ ] No [ ]

What software packages do you have experience of ? ………………………………………

………………………………………………………………………………………………………………………...

Our business model involves client acquisition & customer satisfaction. Which of

these areas are you more comfortable with? ……………………………………………………

Why I am interested in a XXXX Business Opportunity: …………………….........................

………………………………………………………………………………………………………………………...

………………………………………………………………………………………………………………………...

What appeals to me most about an ABC Franchise is:

………………………………………………………………………………………………………………………...

………………………………………………………………………………………………………………………...

Possible area(s) I wish to consider: …………………………………………………………………

………………………………………………………………………………………………………………………...

Please advise here if there are any areas of concern that you would like to

discuss further: ………………………………………………………………………………………………..

………………………………………………………………………………………………………………………...

………………………………………………………………………………………………………………………...

………………………………………………………………………………………………………………………...

I will be able to start, if mutually agreeable, on: …………………………………………………

The best time to contact me to arrange a meeting is: …………………………………………

Signed: …………………………………………………………………….Date: ……………………………

Please return this form to:

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ABC Franchise Ltd – Franchise Manager

Applications Dept

5th floor, 230 City Road, London EC1V 2TT

or Fax: 020 1234 5678

or email: [email protected]

This form is for information only and will help us to assess your suitability to own

an ABC Franchise. It is in no way binding to either party and will be treated in the

strictest confidence. Your details will not be sold or passed onto a third party.

We are committed to building our franchise network regardless of

ethnicity, age, gender, disability, religion or sexual orientation.

Please consider seriously if you match our brand values and are the sort of

capable, friendly, enthusiastic, hard working business builder

we are looking for before returning this form to us ☺


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Appendix 6 – NonDisclosure Agreement Example ABC Franchise Limited CONFIDENTIALITY AGREEMENT (Single) To be used where only ABC is providing the confidential information and the other party is being bound by the confidentiality covenants. ABC is not required to comply with the confidentiality terms.

CONFIDENTIALITY AGREEMENT

THIS CONFIDENTIALITY AGREEMENT is entered into as of this [ ] day of [ ] 20___ (hereinafter referred to as the “Effective Date”)

BETWEEN: (1) ABC FRANCHISE LIMITED, a company incorporated under the laws of England and Wales registered under number [12345678], and having its registered offices @The Bakery, 5th floor, 230 City Road, London EC1V 2TT, United Kingdom (“ABC”);

(2) [Individual], an individual resident in the United Kingdom, and having its residential address at [ ] (“Individual”)/[Company A ] Limited, a company incorporated under the laws of [England and Wales] registered under number [ ], and having its registered offices at [ ] (“[Company A]”).

WHEREAS, in connection with the evaluation of a potential acquisition of the right to operate a franchised business (the “Transaction”) by and between ABC and [Individual/Company A], [Individual/ Company A] has requested and ABC will provide certain information relating to its business.

NOW THEREFORE, the Parties agree as follows:

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1. Definitions

“Affiliate” means, as appropriate, ABC’s subsidiary, direct or indirect holding company or any subsidiary thereof;

“Information” means any information concerning ABC or any of its Affiliates, which is furnished by ABC or any of its Affiliates, or their respective directors, officers, employees, advisers, or other agents (collectively, “Representatives”) in any form to [Individual/Company A] or any of the [Individual/Company A]’s Representatives, regardless of whether specifically identified as “confidential,” together with analyses, compilations, studies or other documents prepared by [Individual/Company A] or its Representatives, which contain or otherwise reflect such information, or their review of, or interest in the ABC or any of its Affiliates.

The term “Information” shall not include any information which (i) was or becomes generally available to the public other than as a result of a disclosure by [Individual/Company A] or any of its Representatives, or (ii) was available to [Individual/Company A] on a non confidential basis prior to its disclosure by ABC or its Affiliates, or (iii) becomes available to [Individual/Company A] on a non confidential basis from a source other than ABC or its Affiliates, provided that such source was or is not known by [Individual/Company A] to be prohibited from disclosing such information by a contractual or legal obligation to ABC or its Affiliates, or (iv) was developed by [Individual/Company A] or any of its Representatives independent of any reference to the Information and independent of the participation of any person who had access to the Information;

“Party” means either ABC and its Affiliates, or [Individual/Company A] and it’s Affiliates; and “Parties” means both ABC and [Individual/Company A] and their respective Affiliates.


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2. Scope

As a condition to furnishing the Information, [Individual/Company A] agrees to treat such Information as confidential in accordance with the provisions of this Agreement.

3. Protection of Confidentiality

3.1 [Individual/Company A] hereby agrees that the Information will be used solely for the purpose of evaluating the Transaction and not for any other commercial purpose and that such Information will be kept confidential by [Individual/Company A] and its Representatives and will not be disclosed or divulged by [Individual/Company A] or any of its Representatives without the express prior written consent of ABC. [Individual/Company A] is permitted, however, to disclose the Information to those of its Representatives (other than any such person or entity whom [Individual/Company A] knows or suspects to be a direct competitor of ABC or a director, officer, employee or a substantial investor in a direct competitor of ABC) who need to know such Information for the purpose of evaluating the Transaction. [Individual/Company A] agrees, however, that such Representatives shall be informed of the confidential nature of such Information, shall be directed to treat such Information as confidential and shall agree to be bound by the provisions of this Confidentiality Agreement.

3.2 [Individual/Company A] undertakes to ABC that it shall not copy, reproduce or reduce to writing any part of the Information except as may be reasonably necessary for the Transaction and that any copies, reproductions or reductions to writing so made shall be the property of ABC.

3.3 [Individual/Company A] will be responsible for any breach of this Confidentiality Agreement by its Representatives (including employees who subsequent to the first date of disclosure of information

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hereunder, become former employees). [Individual/Company A] agrees, at its sole expense, to take all reasonable measures, including but not limited to court proceedings, to restrain its Representatives from unauthorised disclosure or use of Information.

3.4 In addition, without the prior written consent of ABC, [Individual/Company A] will not disclose, and will direct its Representatives not to disclose, to any third party the fact that discussions or negotiations are taking place concerning a possible Transaction, or any of the terms, conditions or other facts with respect to any such Transaction or the relationship between the Parties, including the status thereof.

4. NonLiability for Permitted Disclosure

Notwithstanding anything stated to the contrary herein, [Individual/Company A] and its Representatives may disclose any Information to satisfy a legal demand by a competent court of law or the rules, regulations or requirements of any relevant stock exchange, or governmental body, provided however that in the case of a disclosure of Information to satisfy a legal demand by a competent court of law [Individual/Company A] shall advise ABC prior to disclosure so that ABC has an opportunity to defend, limit or protect against such production or disclosure, provided further that [Individual/Company A] shall disclose only that portion of the Information which is legally required to be disclosed and [Individual/Company A] will exercise reasonable efforts to obtain a protective order or other reliable assurance that confidential treatment will be accorded to any Information required to be disclosed.

5. NonExistence of Implied Rights


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[Individual/Company A] acknowledges that it shall not acquire any right, title or licence of use in respect of the Information disclosed by or acquired from ABC.

6. Liability

[Individual/Company A] will be responsible for any breach of this Confidentiality Agreement by its Representatives. [Individual/Company A] agrees, at its sole expense, to take all reasonable measures, including but not limited to court proceedings, to restrain its Representatives from unauthorised disclosure or use of Information.

6.2 If [Individual/Company A] breaches this Agreement, ABC may at its option elect to institute proceedings in court to obtain damages and/or to enforce specific performance of this Agreement.

6.3 [Individual/Company A] further understands, acknowledges and agrees that where in ABC’s sole opinion, monetary damages would not be a sufficient remedy for any breach of this Agreement by [Individual/Company A] or by any of the Representatives, ABC will be entitled to specific performance and injunctive relief as remedies for any such breach. Such remedies shall not be deemed to be the exclusive remedies for a breach of this Confidentiality Agreement but shall be in addition to all other remedies available at law or equity.

7. No Guarantees of Accuracy or Completeness of the Information

Disclosed

7.1 THE INFORMATION IS PROVIDED “AS IS” WITH ALL FAULTS. IN NO EVENT SHALL ABC, ITS AFFILIATES AND THEIR RESPECTIVE REPRESENTATIVES BE LIABLE FOR THE ACCURACY OR COMPLETENESS OF THE INFORMATION.

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7.2 None of the Information disclosed by ABC to each other constitutes any representation, warranty, assurance, guarantee or inducement by ABC to [Individual/Company A] with respect to the infringement of trade marks, patents, copyrights; any right of privacy; or any rights of third persons.

8. No Undertaking to Disclose or Complete the Transaction

This Agreement does not constitute, by itself, any undertaking or obligation on the part of the Parties to carry out the Transaction and/or enter into an agreement thereof in any manner whatsoever.

9. Return of Information, Copies and Documents

Upon written demand by ABC, [Individual/Company A] shall: (i) cease using the Information, (ii) return the Information and all copies, notes or extracts thereof to ABC within seven (7) days of receipt of demand, and (iii) upon request of ABC, certify in writing that [Individual/Company A] has complied with the obligations set forth in this Clause 9.

10. No Waiver

10.1 [Individual/Company A] further understands, acknowledges and agrees that no failure or delay by ABC in exercising any right, power or privilege hereunder shall operate as a waiver hereof nor shall any single or partial exercise thereof preclude any other or further exercise of any right, power or privilege hereunder.

10.2 No waiver or modification of this Agreement will be binding upon either Party unless made in writing and signed by a duly authorised representative of such Party.

11. Governing Law and Jurisdiction


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This Agreement shall be governed by and construed in accordance with the laws of England & Wales. The Parties submit to the non‐exclusive jurisdiction of the Courts of England & Wales for any settlement of any controversy which might result from the execution, interpretation, performance or termination of this Agreement.

12. Term

This Agreement shall subsist from the Effective Date for a period of five (5) years. If the Parties enter into a definitive agreement with respect to the Transaction, then the terms of such agreement shall govern their future obligations with respect to each other’s Information, unless agreed otherwise by the Parties.

13. Entire Agreement

This Agreement supersedes all prior discussions and writings with respect to the subject matter hereto and constitutes the entire agreement between the Parties with respect to the subject matter hereto.

14. Assignment

14.1 Subject to any exceptions set out in this Agreement, neither Party to this Agreement may assign this Agreement nor any interest or obligation under this Agreement in whole or in part without the prior written consent of the other Party and any purported transfer without such consent will be void.

14.2 A Party may impose reasonable conditions upon its written consent to a proposed assignment by the other Party.

14.3 Notwithstanding the provisions of Clause 14.1, either Party may assign (the “Assignor”) this Agreement or any of its interests or obligations under this Agreement in whole or in part to any of its Affiliates, without

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the prior written consent of the other Party to this Agreement, provided that (i) the Assignor shall continue to be bound by its obligations of confidentiality hereunder and; (ii) the Assignor shall give the other Party no less than thirty (30) days prior written notice to any proposed assignment under this Clause 14.3, such notice to contain the name, address, and a brief description of the business of the intended assignee.

15. Miscellaneous

The rights and obligations of the Parties hereunder shall be binding on and inure to their respective heirs, successors and permitted assigns.

The Parties have executed this Agreement by the hands of the duly authorised representatives of the Parties the date and year first above written.

ABC Franchise Limited [Individual/Company A] Limited

Signed: Signed:

Name: Name:

Title: Managing Director Title: Managing Director


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INDEX Accident ...................................51 Accounting .......................... 193 action.....................................196 advertise ..................................85 adverts .....................................50 Amazon...................................... 2 America ..................................... 9 Asia.............................................. 9 Awards ................................193 bonus........................................20 Boogles .............................2, 193 book .............................197, 199 bookkeepers.......................196 brand3, 5, 17, 25, 26, 75, 106, 121 break even....... 9, 40, 62, 121 brochure .................................70 Budgeting................................52 business ..............20, 193, 196 business owners3, 37, 38, 106, 108

Caribbean ................................. 9 cashflow........................64, 123 checklist .......................... 50, 73 Checklists................................72 Chile .......................................195 clients ............................... 49, 74 coaching ..................................62 commissions .........................20 competitors .................18, 122 complaints ..............................50 conflict ..................................113 contracts .............8, 23, 60, 83 costs8, 27, 31, 59, 72, 102, 121 creator .....................................25 Credit control ........................51 customer.................................22 customers18, 21, 22, 23, 25, 74, 106

Database .................................52

delegate ...................................48 discovery days.............. 69, 95 Disney ......................................26 distributors............................19 efficient............................ 29, 33 employee ........................ 23, 48 employees ...............23, 49, 94 employer.................................23 employment ...........39, 83, 88 Employment Contract ........50 energy5, 6, 7, 22, 29, 33, 59, 87, 104, 109, 197

entrepreneur.5, 43, 193, 198 Equipment .............................66 Europe ........................................9 exhibitions ...........8, 102, 123 expensive..............19, 22, 196 experience6, 20, 39, 47, 53, 63, 65, 77, 79, 109

facebook............................... 194 Facebook.............................. 194 fail ...................................... 46, 88 failing .....................43, 95, 111 family...............20, 22, 79, 122 Fax................................................2 fee8, 20, 25, 38, 51, 61, 63, 67, 72, 78, 84, 86, 106, 113, 121

formula....................................32 franchise3, 7, 8, 9, 20, 24, 25, 27, 28, 31, 32, 37, 38, 39, 43, 46, 52, 53, 56, 58, 59, 60, 61, 63, 64, 66, 67, 68, 69, 70, 71, 72, 73, 74, 76, 77, 78, 79, 80, 83, 84, 85, 87, 94, 96, 102, 104, 106, 107, 109, 110, 111, 113, 115, 117, 119, 121, 122, 123, 124

Franchise Manager62, 94, 95, 103, 122

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franchisee3, 4, 17, 28, 39, 42, 43, 47, 56, 57, 60, 63, 65, 67, 69, 70, 72, 73, 75, 76, 78, 79, 84, 85, 86, 87, 103, 106, 108, 110, 111, 113, 114, 115, 117, 118, 123

franchisees5, 8, 43, 44, 47, 54, 58, 59, 60, 62, 63, 64, 65, 67, 69, 75, 78, 80, 83, 86, 94, 103, 104, 106, 107, 111, 112, 113, 116, 117, 119, 120, 121, 124

franchises9, 38, 43, 58, 59, 61, 63, 78, 79, 106, 107, 120, 121

franchising3, 4, 6, 7, 17, 18, 25, 26, 27, 29, 30, 33, 38, 46, 47, 53, 56, 59, 64, 84, 88, 102, 110, 119, 124

franchisor4, 8, 17, 42, 56, 57, 64, 65, 72, 78, 84, 87, 108, 109, 110, 115, 116

goal............................................18 guinea pig ....................... 5, 119 handbook........................ 28, 48 illegal ..............................21, 112 income ..................................197 Insurance ................................51 interview .......... 6, 49, 72, 124 investment4, 40, 46, 60, 102, 104, 112

invoice.......................38, 60, 64 KFC .............................................. 9 Launch .....................................72 legal8, 60, 71, 83, 94, 102, 112, 121

liability........................................2 license .............................. 25, 26 license agreement...............25 Licensing.................................25 loan............................................10 loans ...............................19, 197 logos.......................................121 magazines...58, 85, 102, 122 manifesting.........................193

manual7, 30, 42, 44, 46, 47, 48, 52, 54, 64, 83, 85, 88, 94, 119, 120, 123

marketing7, 17, 20, 22, 24, 26, 39, 42, 48, 50, 60, 61, 62, 66, 72, 77, 94, 102, 106, 119, 122

Marketing ............................ 193 McDonalds ................................9 media................................ 72, 73 MLM..........................................20 model............................3, 19, 37 money4, 19, 21, 23, 27, 31, 33, 39, 41, 56, 59, 65, 71, 76, 102, 104, 108, 109, 111, 193, 197

Multi‐Level Marketing ......19 network6, 17, 20, 21, 22, 23, 24, 63, 72, 76, 124

Network Marketing............19 Non‐Disclosure Agreement70 online ..........................................2 operations7, 30, 42, 44, 46, 48, 64, 83, 94, 119, 120, 123

opportunity20, 22, 23, 38, 58, 66, 68, 69, 70, 78, 87, 95, 103, 117, 122

overdraft.............................. 193 payment ................50, 65, 200 Pension.....................................51 phone .................................... 200 pilot42, 43, 44, 46, 54, 63, 67, 75, 83, 85, 86, 87, 119, 120

Pizza Hut....................................9 premises ..................20, 67, 72 price................... 26, 56, 59, 60 procedures ...............48, 51, 53 process6, 7, 17, 19, 27, 28, 29, 30, 32, 46, 47, 48, 49, 50, 51, 53, 77, 88, 102, 110, 124, 197

product development .... 115 product mix ............................49 programme................7, 31, 42 promote.......................7, 22, 66 published...................................2


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pyramid...................................21 qualification ..........................70 radio.................22, 72, 73, 106 recruit ....................19, 85, 104 recruiting.................21, 94, 96 recruitment 6, 48, 49, 77, 95 renewal.......................110, 116 reputation .........................5, 21 restaurant............................112 review ........................................ 2 risk..................................... 43, 79 royalties61, 64, 65, 103, 114, 115 royalty17, 38, 61, 108, 113, 121 salary.... 38, 41, 62, 103, 123 sales8, 20, 22, 25, 38, 42, 48, 58, 61, 63, 103, 116

school ....................................197 self‐employed.......................67 sell4, 7, 9, 19, 21, 26, 28, 37, 78, 121

service3, 9, 20, 21, 22, 24, 26, 30, 64, 106, 110

Social media...........................51 software ..................................66 solicitor ...................................83 StarBucks.................................. 9 stocks ....................................197 strategy............. 17, 22, 29, 78 stuff ........................................197 subcontractor .......................84 Subcontractors .....................51 SubWay ..................................... 9 success3, 5, 12, 29, 65, 69, 72, 79, 86, 112, 115, 124

successful17, 43, 44, 72, 112 supervise.......................... 19, 47 support3, 5, 17, 23, 45, 60, 61, 65, 73, 79, 103, 106, 107, 110, 111, 113, 124

system2, 17, 20, 24, 26, 30, 32, 43, 46, 47, 61, 63, 65, 79, 80, 84, 88

targets............................63, 116 Taxes .........................................51 technique................................23 Telephone ........................... 200 template......................8, 31, 72 territory24, 25, 75, 106, 116, 121, 123

timescales....................... 7, 121 Timesheet................................51 trademark ..............................17 trademarks .................... 25, 84 training3, 5, 7, 17, 20, 26, 42, 44, 46, 50, 59, 62, 71, 77, 79, 85, 102, 106, 110, 111, 112, 113, 118, 120

Training....................46, 51, 66 twitter ................................... 194 VAT .................................... 51, 63 wages................................ 23, 64 website39, 53, 68, 69, 77, 85, 94, 102, 121

Winnie The Pooh.................26 workshops .......................... 193 writing ........................................2

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ABOUT THE AUTHOR Born in Nottingham, UK, Lisa Newton moved to London to study Accounting with Marketing at Middlesex University. Graduating with a first class honours degree, she then went on to do an MSc in Investment Management at City University. In the same month of the Masters graduation ceremony at City, Lisa formed her first company Boogles bookkeeping with £150. Her mum put in £50, and Lisa used £100 of her overdraft. A strong supporter of women in business and entrepreneurial people, Lisa is an Ambassador for Enterprising Women (the UK campaign to give women confidence and ambition to be enterprising ‐ to have ideas and to make them happen). She is a member of the ICB & AAT. Lisa is a serial entrepreneur and holds various directorships in various industries including telecoms, publishing, hair & beauty as well as finance. She has franchised a business and won various awards in Business including: Young Entrepreneur of the Year Award 2007 with Precious Online and in 2008 Enterprising Business Award and has been nominated and a finalist in numerous others including Boogles being short listed to the final 5, out of 14,500 entries for Best Bookkeeping Practice Lucas Awards in 2009 and 2011 and Boogles being short listed for Best Accounting Franchisor in 2011 by the BKN awards. In 2012 & 2013 Boogles won Best Accounting Franchisor award. In 2015 Boogles won Best Bookkeeping Business London, Accountancy International award. In 2016 Lisa was the recipient of the BE Mogul Award. Lisa coaches and does talks on Cashflow and Money Management. The Constant Cashflow Online Course is available at:


193

www.Udemy.com/Constant‐Cashflow ‐ Use the code CCFFRANBK20 to get 20% off. The How To Franchise Your Business Course is available here: www.udemy.com/franchise‐your‐business ‐ Use the code FRANBK20 to get 20% off. Lisa supports the charity The MS Society. A speaker, consultant and an avid net‐worker, Lisa enjoys meeting people and working on projects with like‐minded individuals. In her spare time, Lisa likes travelling, dancing salsa, writing books and learning languages. More about the author can be found at: www.LisaNewton.co.uk Email me: [email protected] Follow me on twitter: @lisa_newton1 Connect on FaceBook: www.facebook.com/booglesb

http://www.udemy.com/Constant-Cashflow

http://www.udemy.com/franchise-your-business

http://www.lisanewton.co.uk/


http://www.facebook.com/booglesb

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ABOUT THE ILLUSTRATOR Rosie Brooks was born in London. Winning a BBC Blue Peter poster competition at school launched a career and she soon began taking on professional commissions including for Comic Relief whilst at still at school. Rosie studied Music at Durham University, designing wine and port labels for her college then went on to complete a Masters in Children's Book Illustration at the Ruskin School of Art, Cambridge where she was short listed for the Macmillan Children's Book Prize. Since becoming a freelance Cartoonist and Illustrator Rosie has worked to build a long list of international credits. Her clients have ranged from Sir Paul McCartney to the Ministry of Education in Chile, A Suit that Fits (who paid her in a wardrobe of rather divine tailor made items), WaterAid, Ogilvy, M&C Saatchi, Pearson Education, and many, many more. Supported by the UKTI Rosie exhibits every year at the Bologna Children's Book Fair and is a regular contributor to the Campaign for Drawing's Big Draw events. More about the Illustrator can be found at: www.RosieBrooks.com You can contact the illustrator: Email: [email protected] Twitter: https://twitter.com/rosiebrookspics Facebook: www.facebook.com/rosiebrooksillustrator

http://www.rosiebrooks.com/

https://twitter.com/rosiebrookspics

http://www.facebook.com/rosiebrooksillustrator


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OTHER BOOKS BY THE AUTHOR

How To Start Your Own Bookkeeping Business How to start your own bookkeeping business is an action‐packed, tip‐filled, no‐nonsense approach to how to start, what to do, things to look out for, pitfalls to avoid and its guidance will help you to avoid the expensive, painful time‐consuming mistakes which most freelance independent bookkeepers make... ISBN: 978‐1477580660 Constant Cashflow How to make money flow to you every single day. Most workers in the western world are indebted and terrified of losing their jobs. The reason being is that their job is usually their only source of income. Many small businesses suffer the same fate – they are heavily reliant on just one or two key clients. The secret to prosperity is to have CONSTANT CASHFLOW – streams of income flowing in from more than one source – all the time. Forget feast and famine. This book will show you how to make money flow to you every single day whether you are a small business, self employed or employed.

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ISBN: 978‐500601225 Make The Most of Your Money How to budget, save and manage your finances. This book looks at how to make the most of your money. Often the harder you work, the less you have to show for it. This book covers the issue of money. All the stuff you should have been taught in school including income, stocks, bonds, assets, reducing debt, mortgages, loans. ISBN: 978‐1481990639

Cosmic Ordering With Vision Boards Select it. Project it. Expect it. Collect it! You may have heard of

'The Secret´ and ´the law of attraction´. What this book is all about, is applying the law of attraction and manifesting what you want, through placing orders with the universe through vision boards. The book outlines in detail how to create a board, what works, and (very importantly) what to do if you don't achieve the results that you want. There is a process to remove the blocks and to allow the energy to flow. ISBN: 978‐1492113607


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Think And Grow Rich by Napoleon Hill

Originally published in 1937, Napoleon Hill interviewed over 500 of the most affluent men and women of his time, and documented their secrets to wealth. Fast forward to present day and business people, top achievers and entrepreneurs alike still refer to this timeless classic. This exciting and revised edition by Lisa Newton expands on Hill’s work and can be used as a workbook. Newton developed this as an effective tool for her own mastermind circle. Author: Revised and Expanded by Lisa Newton ISBN: 978‐1505889352 How To Write A Book In Two Weeks (or Less)

Do you have a burning desire to write a book, but don’t know how? Have you been thinking about writing a book for a while, but have just never ‘gotten round to it?’ Would you like to get your book completed quickly? Serial entrepreneur and author Lisa Newton explains how to write a book in two weeks (or less) which works particularly well for writing non‐fiction books, business books and self‐help books. ISBN: 978‐1492273554

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To order any of these books please fill in the form below:

Name: _________________________________________________________________

Address: ______________________________________________________________

_________________________________________________________________________ City: _____________________________ Country: _________________

Postcode / Zip: ____________________

Daytime Tel. No./Email: ______________________________________________

(in case of query)

No. of copies Title Price Total Make The Most Of Your Money £ 8.99

97 Ways To Market Your Accountancy Business £ 12.99

How to Start And Run A Telephone Answering Service £ 4.99

How To Start Your Own Bookkeeping Business £ 14.99

QuickBooks Online. The Handbook £ 16.99 Constant Cashflow £ 6.99

How To Write A Book In Two Weeks (Or Less) £ 4.99

The 21st Century Business Model £ 4.99 Cosmic Ordering With Vision Boards £ 6.99 Think And Grow Rich £ 8.99 How To Write A Book In Two Weeks £ 4.99

Money Maths With Boogles: Workbook 1: Getting To Know Your Numbers £ 4.99

For P&P add £2.50 for the first book, £1 for each extra book

GRAND TOTAL £


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Four ways to pay: 1. Telephone the Boogles Hotline on +44 (0) 20 3371 8894. Receptionists are there 24 hours a day, 7 days a week. And leave a message with them ‘I’d like to order’ and we’ll call you back. Please have your card (debit or credit card handy). 2. I enclose a Cheque made payable to Booglez Limited for £ ___________ 3. Please send a payment via paypal to [email protected] (or just email us and ask for a payment request) 4. Please charge my Visa [ ] MasterCard [ ] Amex [ ] Maestro (issue no. _______) [ ] Card number: _ _ _ _ /_ _ _ _ / _ _ _ _ / _ _ _ _ / _ _ _ Expiry date: _ _ / _ _ Start date: _ _ / _ _ Last three digits on back of the card: _ _ _ Signature: _______________________________________ Please return forms to: (Photocopies acceptable) Direct Mail Dept., Booglez Book Publishing, Fitzroy House – 3rd

floor, Abbot Street, Dalston, London, England, E8 3DP Enquiries to: [email protected]

Booglez Limited (directly or via its agents) may mail, email or phone you

about promotions or products. [ ] Tick box if you do not want these from us

www.LisaNewton.co.uk



http://www.lisanewton.co.uk/

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