This business aims to help you expand as a franchise
Who are you?
Peter Finlay, MD and founder of Franchise Doctors.
What do you do?
A business will come to us and we’ll investigate to see if it’s franchisable. If it is, the client will then outsource to us the development, implementation and management of its franchise network. This is based on a five-year contract, so we should build a long-term relationship. The client would still manage its core business, but we would manage the franchising aspect. Ultimately, we get paid on how successful the franchisees are.
Why should I care?
Organic growth can be expensive and time-consuming. If you have systems and strategies that can be repeated, growing the business as a franchise is far more profitable because you’re growing it on the back of franchisees investing in their own businesses. It’s a cost-effective and stable way of growing your business. That said, running, for instance, two or three coffee shops is totally different from managing 150 franchisees. Not only would we recruit and develop the franchisees, we would manage them from then on. Our job is to grow the franchisees’ businesses, rather than look after the franchisor.
What can you do for me that I can’t do for myself?
If you franchised the company yourself, you would take your eye off the ball from running your core business. Franchising is a completely different discipline. If you called in traditional consultants, you’d pay for things like manuals and franchisee contracts, but you’d then be left to do it all on your own. We do everything in-house – we even have our own barristers. We manage that whole process and get paid based on the results of the franchise network.
What mistakes will you prevent me from making?
A common mistake when a business recruits franchisees is that they take on the wrong type of people. It can also be very tempting to take the franchise fee and not provide any support afterwards. We’re very careful in picking franchisees for clients because we get paid on the long-term results of those franchisees. We help implement the strategy in finding the right franchisees for each one of our clients.
How else will you save me money?
We’ve had clients who’ve paid £100,000 to so-called franchise consultants, only to be left to do the job on their own. Our clients would save money on these unnecessary consultancy fees and on recruiting franchisees because we find franchisees on their behalf. It’s a complicated process – we have up to 40 enquiries a day from people wanting to buy franchises, who we then marry-up with our clients.
Give me an example of one business you’ve worked with this year.
Cloudy 2 Clear, a Blackpool-based double glazing company. We took them from a standing start to recruiting their first franchisees within 10 weeks. They now have 17 areas sold within the last four months. All of the franchisees have expanded their own businesses. We’re looking to bring in up to 100 franchisees in the next 12 months. If a business can prove three things – it is reputable, profitable and has systems that can be reproduced – then we can work with it.
Building a website for your business idea is easier than you might think. Our online tool ranks the top website builders that offer free trials.
Why should I trust you?
We’ve been in the business for 25 years. Secondly, we have a guarantee in place that if the client isn’t happy during the first four months, we’ll return the retainer. Thirdly, and most importantly, we get paid on results, so it’s in our interests that the franchise network is successful. We’re accountable. If it doesn’t work, we don’t get paid.
OK, so how much will it cost me?
A one-off retainer fee of £25,000, which is paid over four months and is fully refundable. We then take a portion of what the franchisor has earned from the franchise operation, which usually amounts to 30%.
Company: Franchise Doctors
Description: Development and management of franchise systems
Coverage: UK-wide (there are 58 ?franchise doctors? across the country)