ABOUT US

If you’ve got a business that you are thinking aboutexpanding as a franchise then we can provide the helpand advice required to create a robust and successfulfranchise model. Our support is flexible and covers allareas of developing and launching a new franchise orexpanding an existing network. We’re here to give you thebenefit of our experience and make the process as smoothand time efficient as it can be.

About Us

The Franchise Company was established in 1991. We’re a specialistfranchise consultancy firm affiliated to The British Franchise Association.We’re experienced, professional and easy to work with. Our consultantshave direct personal experience in all aspects of franchising and haveworked as main board directors in a variety of franchise systems andsectors.

Over the last 25 years we’ve helped hundreds of businesses both in the UKand abroad to develop successfully and avoid the mistakes that are easy tomake without the experience and knowledge that we bring.

Our services and standards reflect the BFA’s code of ethics and bestpractice. We also have extensive professional contacts throughout the UKfranchise industry including the high street banks.

Over the last few years we have expanded our business internationally andnow have offices in Turkey, Latvia and Saudi Arabia providing domestic andinternational franchise consultancy services.

Julie Waites - PartnerJulie is one of the most experienced

franchise consultants in the UK.She set up The FranchiseCompany in 1991 and is one isone of partners. Since formingThe Franchise Company Julie

has worked on many successfulfranchising projects for clients in a broadrange of sectors. She is a Member of theChartered Institute of Marketing and is aguest speaker for the British FranchiseAssociation on workshops for franchisors.She has extensive expertise in the practicesand principle of franchisee recruitment andhas helped clients to recruit many hundreds(or even thousands) of franchisees.

Ken Rostron - PartnerFormer Managing Director of the

Prontaprint Group and anexperienced CEO, Ken hasmany years’ experience in theday to day operation offranchised businesses, including

recruitment of new franchisees,litigation matters, company floatation andre-launching and re-branding a number offranchised businesses. Ken became apartner in The Franchise Company in 2002and has worked on a wide range offranchise and license business modelsincluding large, blue-chip corporations. Kenhas extensive international experience andhas helped a large number of clients exporttheir franchise models via masterfranchising.

Mashud Choudhury - Franchise ConsultantMashud (‘Mash’ to his friends) joined The

Franchise Company in 2000. Hehas a background in marketingand has a broad and variedexperience of franchising withnumerous successful franchisors.

He has a sound understanding offranchising and marketing principles andhis projects have included businesses fromretail to job format franchises, bothdomestic and international. Mashudspecialises in operations manuals andfranchisee recruitment and spends manyhappy hours keeping up to date with thelatest online and social media trends in thisarea for the benefit of all clients.

Our Approach

Our focus is on clear, concise and practical advice that is based on actualday to day franchise experience. Our approach combines our experienceof franchising with our clients knowledge of running the business todevelop the franchise model with the highest possible chance of successin the market.

Our project approach is flexible and projects are structured and carried outin line with our client’s needs. Either we can carry out the bulk of thefranchise development work required or we can work as project managersto “add value” to development work that is carried out internally.

Our range of services includes:• Feasibility studies/Franchise package development• Franchise fee structures and financial models• Franchisee profiling• Territory analysis• Franchise agreements• Operating manuals• Franchisee training and support programmes• Trade mark registration• Franchisee recruitment • Setting up and running pilot operations• Franchise network management• International franchising• Franchise seminars and training for the franchise team explaining how

franchising works and developing internal skills in franchising

The FranchiseCompany Team

franchisecompany.co.uk

Ongoing Support

Some clients want a long term relationship that varies as their franchise businessgrows and develops and we are happy to provide this as required through all of thestages as detailed above and then ongoing.

Franchise Recruitment

As part of our ongoing support services we can provide active and ongoingsupport with franchisee recruitment and franchise network management support fornew and existing franchisors.

Potential Rewards

Franchisors usually generate revenue from their franchise operations in thefollowing ways:

Franchise Package Fee: A one-off, up-front fee paid by franchisees for the initialproducts and services provided by the franchisor to enable them to set up andbegin trading.

• License Fee: A one-off, up-front fee paid by franchisees for the rights grantedunder the franchise agreement

• Franchise Management Fees: On-going fees paid by franchisees, either anagreed fixed monthly fee or, more commonly, a % of their monthly turnover(typically 5-15%)

• On-going sale of products and/or services to franchisees

In addition, franchising normally significantly increases the capital value of abusiness and some franchised businesses have sold recently for very significantcapital amounts - much greater than could have ever been achieved from companyowned expansion.

Franchise Development Process

The chart below illustrates the normal process that a business will go through when developing a franchise model.Our service list above covers all of the work required to take you through this development process.

THE STAGES OF FRANCHISE DEVELOPMENT

Develop thebusiness model andprove overallviability in one ormore areas

Design the franchisemodel

Confirm feasibility

Produce franchiseeand franchisorfinancial models

Fee structures

Territory analysis

Pilot the franchisemodel in 1-3 areas

On-going monitoringand review

Feedback loop toimprove systems

Accelerate rollout

Provide on-goingsupport to existingfranchisees

Ongoingdevelopment andinnovation

Franchise Prospectus

Operations Manual

Franchise Agreement

Franchise marketingstrategy and materials

Franchise recruitment,training and supportsystems

ExpandProve Design theFranchise Model

ProduceDocumentation

Pilot theFranchise

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Time Scales

Various factors will influence how quickly we could prepare you to launch your franchiseoperation and it is impossible to give a precise prediction of this here. As a guide youcould be ready to begin seeking the pilot franchisees 3-4 months from the commencementof the project.

The Costs Involved

The precise investment required from you in order to franchise your business depends on anumber of factors including the complexity of your business model. We will be able to giveyou a Project Proposal and an itemised breakdown of the costs once we’ve discussed thisfully with you and obtained a detailed brief. Here’s a guide:

Consultancy Fees

Stage 1: Designing the model:£5000 - £8,000 + VAT

Stage 2: Franchise documentation: £5,000 - £8,000 + VAT

Stage 3: Piloting and ongoing depends on our input but fees can be linked to franchisee recruitment

What’s Next?

If you’ve got a business that you’re thinking about franchising (or have an existingfranchised business that you’d like some help with) then simply get in touch for an initialdiscussion. Once we know a bit more about you and your business we can give you someinitial guidance and advice about how to proceed and tell you a lot more about how wecan help. We look forward to hearing from you.

Other Costs

Legal fee franchise agreement: £3,000 - £5,000 + VAT

Franchise prospectus: £500 - £1,000 + VAT

UK trade mark registration: £200 - £800 + VAT

Franchise recruitment launch budget - TBD

LONDON OFFICE: 0207 000 1018Communications House 26 York Street London W1U 6PZ

NORTHERN OFFICE: 01325 251455Regency House 51 Coniscliffe Road Darlington Co. Durham DL3 7EH

Email: info@franchisecompany.co.uk