The seminar was meant for business owners who are considering franchising as a route to expansion and professionals who wanted a better understanding of how franchising works and how it could benefit their clients.

I was supported by three of Ireland’s most successful franchisors – Nik Healy of Cartridge Green, suppliers of printing solutions and supplies to both home and business users, and Anne Marie and Maurice Byrne, founders of Fitkids, who operate fun gymnastic classes for children. While I talked about the theory of franchising, my guests gave insightful, anecdotal and practical information on the industry and what it takes to develop a business successfully through franchising.

It was a great night. If you missed it don’t worry. I’ll be running another seminar in September.

Both franchises are well-established in Ireland and are now aiming at international expansion. Nik and business partner Niall McConnell set up Cartridge Green in 2007. Both had previous experience in franchising. They now have 13 stores in Ireland with a further 18 in preparation. Their first UK store opens in Maidstone next month.

Fitkids was created in 2003 after extensive research into children’s fitness programmes in the US and Australia. Maurice and Anne-Marie launched their franchise 18 months ago after  running a successful pilot operation. They now have 20 franchises throughout Ireland are currently negotiating master license agreements in Europe and Asia.

Both franchises have been short-listed for awards in the Irish Franchise Association’s 2012 Awards competition which highlights and acknowledges  industry successes.

They will be imparting insightful, anecdotal, and practical information on the industry and, more importantly, what it takes to develop a business successfully through franchising. Their experience in franchising, exhibitions, and business shows they have their fingers on the pulse of franchising in Ireland.

Learn and be inspired!

• This seminar is specifically for owners of successful businesses who want to expand through franchising and professionals who want a better understanding of how franchising works and how it might benefit their clients.

Spaces are limited, and I won’t be running another seminar until the Autumn.

Don’t miss out! To register go to www.franchiseyourbusines.ie/seminar

See you there!

Tony Fitzpatrick,
Managing Partner
www.franchiseyourbusiness.ie

My guest speakers will be two Irish entrepreneurs who have successfully franchised their own businesses. We’ll show you how, through franchising, you can develop your business nationally—and even internationally—quickly and without huge bank borrowings or having to give away equity in your company.

What you can expect

You will get an insider’s look into all aspects of franchising, including:

The benefits of franchising.  How franchising works. How you make money from franchising. The market for franchisees.  Is your business ready to franchise?

Who should attend

• Successful business owners who want to expand through franchising.
• Professionals who want a better understanding of how franchising works and how it could benefit their clients.

About your host

I am an experienced franchise consultant and the managing partner with Franchise Your Business.ie. I provide a complete consultancy service to both start-up and established franchisors. I am familiar with both the theory and practice of franchising, having managed my own master franchise before creating and developing franchises for many other entrepreneurs. I am a member of the Board of the Irish Franchise Association and the author of a book “How to Franchise a Business.”

I have a passion for SME entrepreneurs and I’m a firm believer in the franchise model for business growth. As a recognised authority on the industry, I regularly share my expertise in emerging franchise markets in Europe and Asia.

Check my video: “See how YOU can explode your earnings through franchising”

http://www.youtube.com/watch?v=F6ybkVk_6Tw

What others say about my services

Don’t take my word for it, check my testimonials! www.franchiseyourbusiness.ie/testimonials

Don’t miss out!

I have clients who have doubled, trebled, and in one case quadrupled their earnings in just one year of franchising. Seriously….what you can learn at this seminar could change your life.

The seminar is being held in the Merrion Suite at the Stillorgan Park Hotel, Dublin, from 17.00 to 19.00 on Thursday April 19. Free parking is available at the hotel. Come along early to meet other attendees over coffee.

Places are limited so please book early. You can register for the event here - or if you are on LinkedIn see:  http://linkd.in/GDPMI9

Regards,

Tony Fitzpatrick
Managing Partner
www.franchiseyourbusiness.ie
t: 0872449186

Franchisees enjoy a success rate over two and a half times that of stand alone businesses. While the temptation to start a business from scratch can sometimes seem hard to resist, many small to medium enterprise (SME) business owners and potential entrepreneurs find that relying on a tried and tested business method which franchising offers is less of a risk when the economic climate remains difficult.

All franchises offer profitable career opportunities for anyone who is willing to make a commitment and work hard. But which one will they choose? Food and drink franchises will always be top of the wish list but the market for big brand burger restaurants and coffee shops is increasingly crowded. The likes of McDonald’s, Subway, Starbucks and Costa Coffee leave a big footprint. Perhaps this is a perfect time for Irish entrepreneurs to think outside the box and come up with a new franchise concept.
Here are five potential business concepts just waiting for your time and investment.

1: Chinese takeaway

The Irish love of Chinese takeaway is fast becoming a national tradition. Yet for all the hundreds of ‘Moon Dragon’s and JustEat.ie enabled operations around the country, not a single Chinese takeaway franchise has been established here. The concept is not without precedent: PF Chang’s Chinese Bistro, an American dim-sung and Asian food operation, now trades in over 200 outlets around America and the world.

2:  Sports Bar

‘The Claw’s very own entertainment complex, the Peter Clohessy’s Sports Bar, was one of the first major sports bars to hit Ireland. Despite the venue’s popular appeal, though, it has never emigrated beyond its only trading station in Limerick. Why not a sports bar in every city?

3: Sleep pods

Fast becoming part of life in big cities across America, sleep pods are essentially rented sleep enclosures where jaded executives and young professionals catch a little shut-eye during lunch hour. NYC Metro Naps, with a flagship location in the heart of the Empire State Building, is but one successful example. Dublin City Snoozes?

4: Tea
Ireland’s love of tea puts us right at the top of the world’s tea consuming nations. In fact, depending on whom you ask, our average annual per capita consumption of over 3kg makes us either the second or third biggest tea consumer in the world. Oddly, this hasn’t spurred the beginnings of a national tea-shop chain here. American success stories included Teavana which now boasts fashionable outlets in most major cities in America. Tea shops must be a franchise waiting to happen in Ireland.

5: Vegetarian fast food

Movies and books like Fast Food Inc and Supersize are making people reconsider their eating habits. A “full Irish” every morning no longer seems like such a good idea and vegetarianism is on the increase. Vegetarian fast food outlets are already popular on the continent and in the US. The hugely popular Moaz is a European franchise that has since spread to the US. A new franchise on these lines could be equally as popular here in Ireland.

Food for thought?

Together with two guest speakers–both successful franchisors—I’m offering an insider’s look into all aspects of franchising including:

The benefits of franchising.  How franchising works. How you make money from franchising. The market for franchisees.  Is your business ready to franchise?

I’ll be showing you how, by franchising, you can develop your business nationally—and even internationally—quickly and without huge bank borrowings or having to give away equity in your company.

The seminar is meant for successful business owners who want to expand through franchising and also professionals who want a better understanding of how franchising works and how it might benefit their clients. What you will learn could change your life!

The seminar is being held in the Merrion Suite at the Stillorgan Park Hotel, Dublin, from 17.00 to 19.00 on Thursday April 19. Free parking is available at the hotel. Come along early to meet other attendees over coffee.

Places are limited so if this event is of interest please book early. To register go to  http://linkd.in/GDPMI9 or email info@franchiseyourbusiness.ie

They have three options: they can move into another territory to set up a branch there. But the cost could be high, the language and culture may be much different to their own, and the logistics of managing a business in another country from their home base can be considerable.

They could buy a similar business, or perhaps a chain of similar businesses, and re-brand. Again, they would be confronted by the same issues.

Or they could look to expand their business through franchising. This can be achieved very successfully by issuing Master licenses. A master franchise agreement gives someone the right to operate, sell, and service franchised units in a defined territory using a form of franchise agreement approved by the franchisor and requires the master franchisee to enforce its franchisees’ obligations under such an agreement.

In short, running a master franchise involves replicating in a country or region (a country with a large population may be divided into several regions) which the franchisor has already created in his own patch. They’ll need to hire staff, establish support structures, and promote the business to attract suitable franchisees. It’s a role for an entrepreneur, and certainly not someone who is risk averse.

The key to international marketing is research. Before you move into a new territory do your due diligence. Understand the market you are going into. Research the market properly—this will impress your potential buyer and you could get a better price for the license. Every country is different, and what works in your own country may not work in another.

Research the business culture there. For example–and this is very important–will your slogan make sense in another country? Will there be any import restrictions on the products you are supplying or could there be supply chain issues?

Have an investment mindset—you are in this for the long term, not a quick kill. Commit to developing a sound foundation. Write a business plan. Create a marketing entry strategy. Make sure your trade marks are registered properly and get legal advice. Look for a partner with a skillset that compliment yours—I mean operational skills and financial capability.  Spend time getting to know that person. Ideally, open a pilot operation there in conjunction with your partner. Develop a relationship that will endure.

A Master franchise is a major undertaking for anyone. It will usually be much more expensive than the cost of a local or “unit” franchise and a master franchisee will need deep pockets to promote it properly. Equally important, the prospect will need to convince you that he has the management capability to run the business.

The financial outlay might be high, but the rewards can be worth it. While a unit franchisee might be happy to make a “comfortable” living, the master franchisee may be looking for really big profits when his network is firmly established.

The master agreement should always include a development schedule–a performance clause—which stipulates the minimum number of units you expect him to sell each year. Are the targets realistic? Be reasonable and don’t expect him to sign up to the impossible.

The operation of both master and unit franchises is carried out according to operation manuals prescribed by the franchisor. Both the master franchise agreement and unit agreement are integral to each other.  They must be consistent and enforceable.

While the initial term of a unit franchise is usually five years, a master license may be granted for 20 years with an option to renew. Such a lengthy term is necessary since it could take several years before the master franchisee’s network is established and his investment pays off.

Buying a master franchise is potentially a good idea for someone who is an experienced manager with sales and marketing skills and has run a multi-unit business in the past. He would be building an asset which can fetch a substantial price when he comes to sell. The franchisor’s brand may be well established and systems are in place. But how sure can he be that the business will work in his country? Cultures differ, and success in one country doesn’t guarantee success in another.

While you will have given him your best advice, he will need to research the market thoroughly himself before making a decision. He will be asking if the business got “legs”? Will it survive in the long term? Unless the brand is big enough to have potential franchisees clamoring to sign up before the concept is proven in his region he may consider opening a “pilot” franchise himself. It could be a useful showcase for franchise sales.

Apart from the fee you get for the master franchise, it is normal for you, the franchisor, to receive a fair share of the fee the Master franchisee gets from the sale of each local franchise and also a portion of the monthly management fees that he collects from his franchisees. This is not unreasonable, since you will be training his franchisees and he will have the benefit of your systems and ongoing support and the pulling power of the brand you may have spent  lot of money creating.

Remember, all franchising is about relationship building. It’s not always the man with the biggest cheque book that is going to be successful. Choose your master franchisees just as carefully as you would choose your own “local” franchisees.

I’ve been a member of Linkedin for years and frequently complained to anyone who would listen that I never got a single lead from it. But Linkedin got a new lease of life when—at the invitation of specialist Bob Flynn—I formed a Group called The Irish Franchise Forum. I told my 400-odd Linkedin contacts about it and Bob weighed in by inviting contacts of his own. Within weeks I had more than 700 members! The membership base will be a useful resource when I stage seminars during the year.

I enjoy contributing to the discussions, but managing a group like this and being a member of other groups on Linkedin is not easy. It needs my attention on a daily basis. My inbox is constantly filling with notices, blogs and newsletters some of which drag me into discussion threads which is time consuming and sometimes distracting. But I’ve convinced myself the effort is going to be worth it. Well, everybody knows you must use SMM…

It’s a different story with Facebook and Twitter. I have a business page on Facebook but rarely use it. Facebook is great for keeping in touch with friends and sharing photos (provided it doesn’t get too personal—you never know who’s watching)– but I don’t think it can benefit my business. Same with Twitter. I can see how Twitter can be useful if you sell ice cream and have a new flavor to promote, or if you want to start a revolution. But I’m in franchising, where nothing happens instantly and announcements are not an everyday event. I confess I’m not really interested in hearing what people are having for breakfast or what new tricks their dog can perform.

Having said that, I do use Twitter. I tick the box to make sure my Linkedin posts also go to  Twitter (and Facebook) and occasionally I’ll think of something outside my blog or Linkedin that’s worth a separate Tweet. My good friend Kevin Bambury advises me on my Twitter strategy. I have 237 followers and I’m following 217 Tweeters. Kevin was able to tell me recently that I am in the Top 50 Franchise Experts on Twitter. Wow! That’s really something. Well done, Kevin.

Having someone handling SMM for you is considerably cheaper than paying for SEO which is another imponderable.

In a recent survey more than half (55 per cent) of marketers said they will increase SMM spend in 2012. On the whole, are they getting the basics right? Not according to Daniel Rowles of online consultancy Target Internet. “Right now, most companies are in a mess with social media,” says Daniel. “We’re still in the experimental stage. Objectives and measurement aren’t always clear and knowledge is in short supply.”

I can see my journey is just beginning!

Now open to all Service leavers, regardless of the date of their discharge, the scheme offers start up grants and loans for any business model of up to £7,500 and up to £30,000 in growth funding once the business has been running successfully for six months.

The Legion provides health and welfare to the serving and ex-Service community and their families. Part of the Legion’s resettlement programme for Service leavers and funded by a grant from the UK Department of Business Innovation and Skills, the scheme is delivered by the Legion through experienced business professionals across England, Wales, Scotland and Northern Ireland.

It has had more than 1,000 registrations in its first year of operation, including many people looking at opportunities in franchising. Applicants and their businesses must be domiciled in the UK and existing businesses seeking funds must have traded for no more than two years. They welcome applications from Service leavers who have an injury, long-term health conditions or a disability.

First step is a programme to evaluate your specific needs and assistance in developing a business start up or business growth plan. A funding proposal is then assessed by the Legion’s professional partners. After receiving funding, the applicant benefits from ongoing mentoring along with period business health checks.

Under the new scheme the government will take 75% of the residual risk, while the bank is in for 25%. While this move is certain to be welcomed by the hard-pressed SME sector—starved of even basic funding from banks since the start of the economic downturn– it doesn’t mean that every application will be approved.

It will apply only to viable trading businesses and there are certain sectorial exclusions, such as agriculture and wholly exporting companies. The government is relying on the banks to screen the applications.

And there won’t be any 100% loans: the applicant will be expected to put up some of the investment required. Just how much an individual borrower can get has yet to be announced, but expect loans from €10,000 to €250,000 and up to €1 million in certain circumstances. This is the level of funding that franchisees were used to getting in the good old days–before the banks ran out of money. Bank staff are currently being trained and readied for the expected demand.

For the first time a common loan application form has been agreed: participating banks such as Ulster Bank, Bank of Ireland, and AIB will want exactly the same information about you, the people behind the business, your financial projections, and timelines.

There’s hope, too, for budding entrepreneurs who don’t qualify under the scheme. Anyone who has been declined by a bank because they can’t offer the required security can apply for a loan from the Social Finance Foundation which is administering €10 million provided by the government to fund projects that do not meet the banks’ usual lending criteria.

Again, terms and conditions have yet to be announced, but the expectation is that qualifying applicants should be able to borrow up to €25,000 on foot of an unsupported personal guarantee.

Not everyone is happy with these proposals: many people say they’re too restrictive. While the scheme won’t solve everybody’s cashflow problems it will put more money in circulation and go some way towards getting the country moving again.

But it wasn’t all doom and gloom. Franchising still thrived as everyone faced up to the challenges. I made time to launch a new website, write an eBook on how to franchise a business (you can download for free!) filmed 17 short videos for my YouTube channel and took up invitations to speak at franchise seminars through Europe and Asia.

I also set up the Irish Franchise Forum, which attracted more than 600 members in less than a month. And to kick off the New Year I’m starting a monthly Newsletter which will keep subscribers up to date on industry developments.

Here’s to 2012—let’s make it a good one!