Irish Franchise Blog

Irish Franchise Skillnet, which is supported and endorsed by the Irish Franchise Association, is proposing to create a Certificate course in Franchising through a Dublin university next year.

The course will be scheduled for a minimum of five days over several months. Depending on its success, this may be followed by a Diploma course run over a longer period. The Certificate will be funded through the Skillnet and the overall cost of training for participants will be reduced by up to 50%. The proposal has been approved in principle by the Steering Committee of the Irish Franchising Skillnet.

The course content for the Certificate is currently being prepared by experienced trainers with specialist expertise in the franchise business in Ireland and the UK. In order to deliver content to meet their requirements, Irish Franchising Skillnet have asked Franchisors for their suggestions about the type of training they would like to see included in this programme.

Network Manager of the Irish Franchising Skillnet is Siobhan O’Callaghan.
Email: siobhan@paramounthr.ie or phone 01 2911963.

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Franchising your business is like setting up a new business. You’ll need a proper plan, proper management, and proper funding.

We’re assuming here that you have a business that’s suitable for franchising. Ask yourself these questions:

Have you run a successful business for at least one year? Have you proven your concept? Will it survive in the long term? Is it profitable? Can you produce audited accounts? Do you operate in a niche market or offer something different in an established field? Can your business be replicated and easily taught? Can you offer leadership, strong management, motivation and support?

And can you offer a franchise at a cost that is good value for money and can make a decent return on investment in the short to medium term and a good living for its owner?

If you can answer yes to most of these questions you may have a business that can be franchised. [Read the rest of this entry...]

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The Operations Manual is the ‘bible’ of the franchised business and forms a significant part of the franchise contract. It is the Franchisee’s primary source of information and guidance and should contain a detailed description of the Franchisor’s system and how to operate it on a daily basis.

Essentially, it will specific to the needs and requirements of the system such as regulating opening hours, product description, stock control stock ordering procedures, handling customer complaints, the payment of fees, and policies in regard to advertising, marketing and promotions.

It will cover set up procedures, including advice on researching the market, business and tax registration, insurance, opening bank accounts, cash security, site set up, and the preparation of a marketing plan.

But it will also refer to building brand awareness, human resources, health and safety matters and basic accounting procedures, such as VAT returns and the observance of other statutory obligations. [Read the rest of this entry...]

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Franchising is not for everybody and it is important that you know what the drawbacks are before making any sort of commitment.

It can be an inflexible method of doing business as each Franchisee is bound by the franchise contract to operate in the business in a certain way. The Franchisor has created a brand and developed a system and to protect it he needs the Franchisee to observe the rules he has set.

You’re an independent business owner operating under the Franchisor’s umbrella.

But you have to follow the rules. You’re part of a team now. You’ll sell exactly the same product or service, probably from shops of offices that look the same and, in some cases, wear the same uniforms as everyone else in the network. There’s little freedom to be creative.

You will also be restricted to a defined location—perhaps a town (or part of one) or a broader territory defined on a map. You will be able to operate there exclusively but not outside it, unless the neighbouring territory is available and you get agreement to work it until it is sold. [Read the rest of this entry...]

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The franchise contract (or agreement) is perhaps the most important document in the franchise process.   Once signed, both parties are bound by it, so it’s worth studying in detail.

The agreement outlines the responsibilities of both Franchisor and Franchisee and should be well balanced in terms of rights and obligations. It should also be exactly the same for every franchisee in the network.

The agreement should achieve three fundamental objectives:

First: in the absence of specific franchise legislation in Ireland it should contractually bind both parties and accurately reflect the terms agreed.

Second: It should seek to protect for the benefit of both the Franchisor and the Franchisee the Franchisor’s brand, reputation, and intellectual property.

Third: It should clearly set out the rules to be observed by the parties, such as: [Read the rest of this entry...]

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The winners of the Irish Franchise Awards 2008  were announced at a black-tie ceremony presented in Dublin by the inimitable Marty Whelan. The awards, sponsored by Ulster Bank, recognise excellence in franchising and top honours went to The Streat, Home Instead Senior Care, Abrakebabra Investments, Pristine.ie, O’Brien’s Sandwich bars, and David Zebedee. Michael Bradley, former CEO of the Irish Franchise Association, received a special award for his outstanding contribution to Irish franchising.

It was also a special occasion for the Irish Franchise Association as it celebrates its 25 th anniversary.  Continued membership growth underlines strength of the franchise sector in spite of uncertain economic times. According to Chairman John Green, the Association has maintained strong growth with a membership increase of almost 10% over the past 18 months.

[Read the rest of this entry...]

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Interested prospects can kill you in the franchise sales business. That’s why the salesman always needs to maintain an active pipeline. It is normal for people thinking about buying a franchise go through several layers of interest. This chart shows the levels of progression:

4. Commitment
3. Active interest
2. Passive interest
1. Curiosity

This chart is inverted because it is a ladder that the prospect must climb. They start out as curious, and as long as the franchise salesman is willing to feed them information about this wonderful, lucrative, not-to-be-missed, world-class opportunity they will be willing to take up his time. It’s up to you to move them up the ladder—or move on yourself! [Read the rest of this entry...]

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OK, we’re in a recession and prospects are not good. But are we downhearted? I don’t think so—not if attendance at last month’s Irish Franchise Exhibition in Dublin is anything to go by.

While the exhibitors were fewer than the previous year, the number of visitors was well up—a sign of the times. I was a speaker at an exhibition seminar. My subject was “Understanding the Franchise Contract.”

I said this wasn’t the most exciting document in the franchise process (it’s a legal document so by necessity it has to use words such as “whereas” and “wherefore” etc. and it can be double-dutch to anyone who hasn’t seen such a document before ) but is arguably the most important, since it sets down the responsibilities of both franchisor and franchisee. [Read the rest of this entry...]

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Businesses that are suitable for franchising should be able to answer “yes” to most of these questions:

• Have you run a successful business for at least one year?
• Is it profitable?
• Can you produce audited accounts?
• Have you proven your concept? Will it survive in the long term?
• Do you operate in a niche market or offer something different in an established field?
• Can your business be replicated and easily taught? [Read the rest of this entry...]

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No-one should enter into a franchise agreement thinking they can walk away from it. It is not as easy at that. You don’t have the right to quit when it suits you. A franchise agreement is a contract like any other. Before signing, both parties make a commitment to work together for an agreed term, usually five years. The Franchisor will have invested time and money into the recruitment process and also into the training of the Franchisee.

They want to see the franchisee put in whatever effort is necessary to make the franchise a success. And they will expect the Franchisee to honour his commitment to pay royalties or management fees due under the agreement during the term. Should you want to terminate the agreement before it expires you would be in breach of contract and the Franchisor could sue for the amount he would have earned had you continued to be a franchisee. This sum could be substantial. [Read the rest of this entry...]

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