NURSING & HOME CARE Global SPECIAL Franchise WIRE MASTER, REGIONAL AND INTERNATIONAL FRANCHISING

TAKE YOUR CARE CONCEPT OVERSEAS

 FIND THE MASTER FRANCHISEE YOU’LL NEED

SHELLY SUN: HOW TO MAKING HOME FINANCE YOUR CARE WORK FOR NURSING & BRIGHTSTAR CARE CARE BUSINESS

GOING GLOBAL P4 MASTER FRANCHISING P28 MARKETING P32

Cover - WIRE 4.indd 1 14/11/2018 14:18 Welcome

CARE AT HOME OFFERS A PARTICULARLY ATTRACTIVE PACKAGE TO THE USER AND ITS OVERHEADS ARE LOWER THAN A BRICK [ CONTENTS ] AND MORTAR CARE HOME BUSINESS”

As the population of so many countries IN THIS REPORT continues to grow older, the market for care 4 homes and for care at home increases. Care HOW WOULD YOU at home offers a particularly attractive FRANCHISE HOME CARE? package to the user and its overheads are, This latest Wire report focuses on of course, lower than a brick and mortar care the growing care at home franchise home business. Concepts in this line have market. Why would you franchise in mushroomed in Western countries and some home care? How would you expand of the more successful brands have begun a brand abroad? How do you know dipping toes in what could be an equally when you are ready for an international receptive market overseas. For those expansion move? These and other considering such a move, Global Franchise questions are answered in this digital Wire offers food for thought and some special issue from the publishers of Global Franchise magazine. expert advice to help you along the way.

4 IS YOUR HOME CARE BRAND 6 Ross Gilfillan READY TO GO GLOBAL? Editor You may be established in the Global Franchise domestic market, but it can be a [email protected] different matter doing that overseas. Brian Duckett navigates the world of overseas expansion THE BUSINESS START-UP MAGAZINE ISSN 1744-6988

02 EXPERT 06 EXPERT ADVICE 9 771744 698037 ADVICE * Brand profiles * Brand profi les * Interviews 1366-2295 * UK-based start-ups Industry news Industry trends Making 771366 229039 * * ISSN What 9 Business plans * Franchise directory *

Money £3.3.2525 JUNE 17 * £3.99Franchise VOLUME 13 ISSUE 2 www.startupbusinessuk.net

www.what-franchise.com* SENIOR THE BUSINESS START-UP MAGAZINE SUCCESS STORIES Got what it Ready to You’re never too old TAKES? to be a franchisee 6 WHY FRANCHISE HOME CARE? The skills you’ll ROLL MORE BANG need to become The pros and a successful cons of buying a FOR YOUR franchisee franchise resale MOVERS BUCKS & SHAKERS How to get the most out of local newspaper With the ageing populations on Western Artisan crafted advertising gourmet food meets TRAIN TALKING cutting edge logistics to gain SHOP Training and The benefits of a support is the retail franchise bedrock of over starting countries increasing yearly, there has success from scratch Make Money Proven profit potential Online at Home never been a better time to franchise in Joscocare founder offers franchisees three tried and tested revenue streams with Simon Coulson of The Internet Business School

PAGE SHOUT PAGE FUNDING PAGE HIT THE JUNE 2017 PAGE OUTSOURCING PAGE JOIN 400,000 PAGE CHOOSE 11 ABOUT IT 8 YOUR FUTURE 6 HIGH ROAD 32 FOR PROFIT 12 ENTREPRENEURS 16 SUCCESS How PR can get Expert advice on how to Common myths about 7 top tips to focus your Opportunity knocks in the How informed decisions your brand noticed secure the right deal van-based franchising business strategy Direct Selling sector infl uence your future this booming sector, says Ed Texeira 28 11 HOW TO FINANCE A HOME CARE FRANCHISE Home Care is a growth area and demand www.globalfranchisemagazine.com for franchises in increasing. But what is the best way to fund your purchase? ADVERTISEMENT SALES DIRECTOR DESIGNER Sukhdeep Dehal QFP advises Mark Forsyth 44 (0)1323 471291 Luke Rogers [email protected] CREDIT CONTROL GROUP ADVERTISEMENT MANAGER Sue Carr 18 FRANCHISING HOMECARE: Richard Davies 44 (0)1323 471291 44 (0)1206 505903 CHALLENGES AND OPPORTUNITIES [email protected] PUBLISHER Edward ‘Ned’ Levitt assesses the SENIOR ACCOUNTS MANAGER Matthew Tudor Neil Phillips 44 (0)1323 471291 market for those wanting to ‘surg [email protected] the silver tsunami’. SENIOR ACCOUNTS MANAGER Follow us on twitter: Tom Hepton 44 (0)1206 505487 @globalfranmag 32 [email protected] 28 HOW TO FIND YOUR ACCOUNT MANAGER MASTER FRANCHISEE Craig Bartlett 44 (0)1323 471291 [email protected] Expanding your homecare service EDITOR overseas will normally require the services Ross Gilfillan of a master franchisee, says Carl Reader [email protected] ART DIRECTOR Lee Whiteford 32 HOW TO MARKET YOUR EXPANDING FRANCHISE Published by Aceville Publications Ltd Marketing your home-grown success The Boatshed, Sovereign Harbour, Eastbourne, East Sussex, BN23 6JH. overseas may require a change of Printed in England © Aceville Publications Ltd methodology, says Tamara Smith.

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IS YOUR HOME CARE BRAND READY TO GO GLOBAL?

It’s one matter to have successfully established your care business in the domestic market, but it can be quite another to try replicating that success overseas. Brian Duckett navigates the world of overseas expansion

he first point to make is offer package has to be defined; the arise in both cases when it comes to that the most important franchisee profile has to be dealing with different cultures and thing to be sure of is that established; candidates have to be communicating with people for THE EASIEST AND the owners and managers attracted and recruited; successful whom English is their MOST COST-EFFECTIVE Tknow what they’re getting into. ones have to be inducted, trained second language. WAY TO BE READY ‘Global’ might be a bit ambitious at and managed. The opportunities are immense IS TO ENGAGE WITH this stage but even the first few steps If the business in question but think carefully if the trigger has EXPERIENCED into ‘international’ need to be taken franchises in its home market then it been an approach from an unknown CONSULTANTS WITH with caution. will be familiar with all of the above; person in another country. That’s not GLOBAL CONTACTS In many ways it can be argued that if it doesn’t franchise at home then it a reason to start doing it but it is a WHO CAN HELP WITH international franchising is similar to will also have to learn and acquire the reason to start thinking about it. The THE DEVELOPMENT growing a domestic network. The skills of franchising. Complications next step is to get as much advice as OF THE PLAN AND ITS possible from people who have been IMPLEMENTATION there and done it, preferably across WHEN IT COMES many business sectors and in many TO FINDING different markets. FRANCHISEES” One of the fundamental truths of international franchising is that will take a lot longer and cost a lot more than anyone thinks. The more experienced input that goes into the preparation of the business plan and budget the better. It doesn’t matter how long it will take or what it will cost provided the necessary investment of human and financial resources is available and it will provide an acceptable return. For me the first thing to find out is why the client wants to do it. Is it a whim or an ego-trip; is it because all their competitors are doing it; is it because they think it’s a route to overnight riches; or is it part of a considered strategy to grow a business which is nearing capacity at home? I prefer the latter. Another fundamental truth is that every other country will do something differently to the way it’s done in the home market. In the care business this will especially involve all sorts of legal and regulatory issues, not to mention the cultural

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is your Home Care brand ready.indd 4 14/11/2018 12:41 differences that affect how the elderly domestic duties to provide services in Today, international franchising are looked after within their families. other countries. offers great opportunities for building The list of target countries will need Gone are the days, long ago, when global brands - provided it is done to be refined to minimise any big international franchising was about properly. Being ready involves having changes so ‘being ready’ will involve finding someone far away, with more a the right Vision; knowing what a great deal of research. money than sense, who would pay a ‘properly’ means; and being prepared All of that research will evolve into big upfront fee but hopefully never to stick to those principles. the business plan to which the have to be seen again. stakeholders then have to be totally committed. Part of that commitment involves putting someone in charge of that plan, providing them with the resources to see it through, and letting them get on with it. There have been many examples of someone being ‘called back’ from international duties to ‘put out fires’ at home which have resulted in the whole international opportunity being wasted. The easiest and most cost-effective way to be ready is to engage with experienced consultants with global contacts who can help with the development of the plan and its implementation when it comes to finding franchisees. However, after that, the ongoing relationship between the franchisor and the franchisees in other countries must be managed internally, especially as the best care business have many unique skills and processes which must be effectively transferred. That means being ready also involves having a team of trainers and support staff who can be released from

ABOUT THE AUTHOR

Brian Duckett is chairman of The Franchising Centre, Europe’s leading firm of franchise consultants. He has made his living from franchising since 1976, initially as a franchisee, then a franchisor and for the last twenty years as a consultant to potential and practising franchisors. His firm co-ordinates an informal network of franchise practitioners, which has representation in more than 40 countries worldwide. He can be contacted by e-mail [email protected]

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WHY FRANCHISE HOME CARE?

With the ageing populations of Western countries increasing yearly, there has never been a better time to franchise in this booming sector, says Ed Texeira

ome care franchises These results reflect arguably the FAST-GROWING INDUSTRY are doing just fine, most healthy and dynamic franchise Over the past twenty years home care thank you, and the facts category in all of franchising with has been one of the fastest growing speak for themselves. little possibility of abating. There are industries in the United States. THE BUREAU OF HFranchise market research firm, over 6.500 franchise locations and This growth has been replicated LABOR STATISTICS, Franchise Grade reports that since 91 home care and senior care in the franchise industry by home PREDICTS THAT 2010 home care franchises have franchise brands in the U.S. Most of care franchises. In 2011 one-third PERSONAL CARE AND grown by 62% and average franchisee these franchise brands provide non- of the home care agencies were HOME-HEALTH AIDES turnover has gone from 9.6% to 7.31%. skilled or companion type private franchises, but in 2016 about half WILL REPRESENT In addition, in 2016, 60% of franchises pay home care services. Some predict were, according to market research ONE IN EVERY 10 did a Financial Performance that more home care franchise brands firm Home Care Pulse LLC. As the NEW JOBS DURING Representation under Item 19 and for will migrate to providing skilled United States population continues THE NEXT 10 YEARS” 2017 the number increased to 74%. nursing services. to age, it’s predicted that health-care

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Why franchise Homecare_ADVICE.indd 6 14/11/2018 12:44 employment will continue to surpass other sectors of the U.S. economy. In fact, health care has recently surpassed manufacturing and retail sector employment, becoming the largest source of jobs in the U.S. The cost saving benefits of home care is a major driver of growth and the more franchises that provide skilled nursing government reimbursed services the greater opportunity for growth. Federal and state funding for health-care means that health-care employment is insulated from swings in the economy. As an example, health care employment increased during the Great Recession. The Bureau of Labor and other healthcare providers. Several U.S. home care franchises Statistics, predicts that personal care Franchises may include medical begin their international franchise and home-health aides will represent staffing as part of other home care program by franchising directly into one in every 10 new jobs during services or as a separate franchise a small country or a country close to the next 10 years. operation. The number of medical their U.S. Operation, such as Canada As the population continues to age, staffing franchises is quite low. or Cost Rica. the demand for home care services The prognosis for the home care will continue to grow. For individuals Medical equipment: Include franchise sector is excellent based seeking to own and operate a franchise both durable medical equipment such upon aging populations throughout for a reasonable investment, a home as patient ramps, specialized vans the industrialized countries and care franchise can be a good choice. In and wheel chairs and home medical the cost saving benefits of home the case of Senior Care, a franchisee equipment which are companies that care services. can tap into a market that continues provide supplies, oxygen breathing to grow and operate a business that is devices and other supplies for home uncomplicated and straightforward. care patients. In addition, the demand for home ABOUT THE AUTHOR care services has encouraged more WHY A HOME OR SENIOR entrepreneurs to launch home care CARE FRANCHISE MIGHT Ed Teixeira, is COO of franchise programs. BE RIGHT FOR YOU: Franchise Grade, LLC and a Has a lower average royalty contributor to Forbes.com. Ed FOUR TYPES OF HOME CARE rate than other personal services has spent over 35 years in the Home health care: Services franchise categories and the overall franchise industry, including 15 provided in the home by nurses, franchise industry. years in the franchised home home health aides and companions. Operational simplicity healthcare sector. He served as Payment for these services includes Many franchises have software a senior executive for a publicly Medicare, Medicaid, Insurance and programs that aid franchisees to traded home care franchisor Private Pay. A limited number of operate more efficiently as well as franchisee of a franchises provide these services. Reasonable investment between multi-million-dollar home care $122,064 - $359,908 operation with six locations. Senior care: Often referred to Stable and growing market He was also Chief Operating as private duty, companion care or An opportunity for expansion into Officer of a franchised medical unskilled home care involves basic other services staffing company. During his services such as meal preparation, tenure, Teixeira was directly compliance with medication, INTERNATIONAL responsible for executing assistance with housekeeping and OPPORTUNITIES international licensing agreements to include companionship. Most home care In the mid-90’s, I completed master the first home healthcare franchises provide senior care franchise agreements in several franchise license in Japan and services which are usually paid for countries including the first home agreements in Spain, Indonesia by private pay or in some cases care master franchise in Japan. Since and Brazil. He is the author of special insurance. that time, many home care franchises The Franchise Buyers Manual including Right at Home, Home and Franchising From The Medical staffing : Is the Instead, Interim and Bright Star, Inside Out. temporary staffing of health care have been successful in exporting personnel to hospitals, nursing homes their home care franchise overseas.

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HOW A LAWYER CAN SAVE YOU LEGAL FEES If you equate hiring a lawyer with spending money, it may be time to think again, says Melissa Murray

urchasing or selling a you can check include Who’s It is common in franchise deals franchise is a substantial Who Legal, Legal 500 and that lawyers are brought into the investment of time and Chambers & Partners which all deal too late. Take the example of a funds yet some people rank lawyers depending on a client who signs a binding letter of Pare hesitant to involve lawyers, or number of specialisms. intent but who no longer wants to only involve them at a late stage. Most proceed (this happens more than you franchisors are aware of this issue 2) SCOPE OF ADVICE AND would expect). With this example, and therefore specifically require a SCOPE OF SERVICES if the client had sought immediate franchisee to warrant that they have It is also important to set out clearly initial legal advice on the received independent legal advice with your lawyer what they will and unsigned letter of intent prior to entering into the franchise will not do for you and what their prior to signing, this agreement. It can be tempting to look advice is to cover – i.e. the scope could have avoided to free internet-based advice. However, of their advice. Many lawyers can further additional this can cause issues later down the give a fee estimate, some will give fees on advices line as, more often than not, parties a fee cap and some will give a fixed around strategies do not know the full extent of legal fee with certain conditions should to attempt to issues and services needed until it is the required work change from the extract them too late. When looking for a lawyer, initial advice. These items will be from the deal it is essential to take the following set out in an engagement letter so and extensive into consideration: you know what the fees are and negotiations what advice you will be receiving around 1) EXPERIENCE for such fees. It is important to find out from your proposed lawyer their level of 3) WHEN TO APPROACH A experience with similar franchise LAWYER – THE EARLIER deals. Do they represent mainly THE BETTER franchisors or franchisees? Have Most lawyers and law firms they done any franchise deals in offer a free initial meeting your specific sector – whether or call. This can help you that be retail, food & beverage or work through the issues services-based franchises. If your and help you decide as matter involves a dispute, are they to whether you want specialized in such franchising move forward with that disputes? Although specialized lawyer and/or the advice. lawyers can have a higher chargeable Experienced lawyers hourly rate, they can often complete can spot issues that their tasks quicker than non- you haven’t thought of, specialised lawyers which can in explain to you fully your turn save you fees in the long run. rights and obligations There are many independent legal under the agreement and directories where lawyers are ranked draw on their experience by clients/peers and where you can with similar deals to let check the experience of the lawyer. Of you know what is or course, a personal recommendation what is not can always help. Legal directories that market standard.

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proceeding with the deal but on AT A GLANCE altered terms and conditions. A Melissa Murray is head of the intellectual property simple quick check of the LOI and team for Bird & Bird’s Middle East offices located advice on its terms and conditions in Abu Dhabi and Dubai. Qualified in Australia, could have saved thousands in she has practised law in the UAE for the past legal fees in dealing with the 11 years and specializes in assisting international consequences after signing. Further brands expand into the Middle East. She is ranked with potential disputes, if you as an international specialized franchising lawyer involve a lawyer early in the process, in many legal directories including Legal 500, they can help protect your position, Chambers and Partners and Who’s Who Legal. ensure that you do not make any statements or provide information that may impact your position later (B) Business Transactions and independent contractor incorrectly in the dispute, and at times can help the Franchise Agreement can result in your business paying you to resolve the dispute without Understanding all of the terms of penalties. Entering into third party going through costly litigation. an agreement can be challenging, agreements with entities such as AN EXPERIENCED An experienced franchise lawyer especially when the other party UberEats to outsource delivery FRANCHISE LAWYER can help you not only with the provides you with their standard services, can result in breaches of CAN HELP YOU franchise agreement, but also with a form agreement. Some legal terms your franchise agreement. Hiring a NOT ONLY WITH number of related matters which can and conditions can be difficult to lawyer will ensure you’re adhering to THE FRANCHISE all help you save money in the long understand or the impact of such all labour laws and the franchisor’s AGREEMENT, run. For example: conditions may not be obviously requirements, avoiding costly BUT ALSO WITH clear. Your lawyer will work on mistakes down the road. A NUMBER OF (A) Legal Structure For your behalf to ensure you RELATED MATTERS Your Business (D) Lease Agreements WHICH CAN ALL Selecting the correct legal entity understand all the terms and Most franchised businesses operate HELP YOU SAVE for your business can be one of the conditions and that negotiations are from leased space. Understanding MONEY IN THE most important decisions you will in line with your needs. Disputes are not only expensive, but they are also the complexities of entering a lease LONG RUN” make. From sole proprietorship agreement is important especially and partnerships to a Limited very time and energy consuming. Investing in a lawyer to help you as a commercial lease is typically Liability Company (LLC), there are drafted on landlord friendly terms review, understand and negotiate numerous options to choose from and for an extended period which your agreement can help protect when establishing your business. may not match the term granted to your interests and hopefully avoid Each structure has its own pros and you under a franchise agreement. any future disputes. cons and the type of legal structure A lawyer will ensure you understand you choose can influence such what your business is agreeing to things as your exposure to liability (C) Employment Practices before you sign the lease and help Labour laws can be complex and, and how much you will pay in taxes. ensure you don’t agree to any over- Selecting the wrong legal entity for particularly in the franchising sector, reaching terms that may negatively your business can cost you greatly are changing rapidly. When hiring or impact your future success. in the long run. A lawyer will help firing employees and independent The above list provides only a you choose the most beneficial legal contractors, you need to ensure you few examples of how a lawyer can entity to ensure you accomplish protect your business and make sure save you money. An experienced your goals in the most profitable your employment processes and lawyer will protect your interests manner possible while policies are in accordance with the from costly litigation and liability, simultaneously protecting requirements set by the franchisor. and help your business succeed your long term interests. Classifying an employee as for the long term.

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HOW TO FINANCE A HOME CARE FRANCHISE Home Care is a growth area and demand for franchises in increasing. But what is the best way to fund your purchase? Lloyds Bank Franchise Development Manager Sukhdeep Dehal QFP advises

he Domiciliary Care manager. The bank’s franchise experts the franchise fee, equipment costs sector has experienced will be able to give you an indication and professional fees such as CQC significant growth in recent of the possible finance available and registration. Franchise banks are years with a number of funding options for the brands you FRANCHISE BANKS able to support your purchase by Tnew providers opting to franchise are interested in, even before you’ve CAN ALSO LOOK AT lending between 50% - 70% of as their growth vehicle, alongside made your final decision. Their OFFERING CAPITAL these costs, with the remainder experienced franchisors increasing experience of working with franchisees REPAYMENT HOLIDAYS needing to be input from your their recruitment across the UK. in the past will give them confidence IN THE EARLY MONTHS own personal savings. The demand for care has supported to be able to lend on more favourable OF BUSINESS TO Another factor to consider will the growth with the ever-increasing terms for your proposed purchase, as ALLEVIATE THE be the potential need to provide ageing population and subsequent they will have confidence in your security. If you are looking to borrow PRESSURE ON THE strain on the public sector to provide ability to replicate the success. in excess of £25,000 it is likely that CASH FLOW. THE quality care, leading to more clients the bank will require you to put up seeing the benefits of using services INVESTMENT COSTS LENGTH OF TIME personal assets as security for any from franchisees. So when looking When looking to raise finance for a THAT THIS IS OFFERED loan agreed. This could be in the form to raise funds for the purchase of care franchise, one of the first factors FOR WILL RANGE of taking a charge against property care franchises, where is the right to consider would be to ensure that FROM BRAND TO with sufficient equity. However if you place to go? you can afford the business. Most BRAND BUT BANKS don’t have property available, this Banks with a specialist franchise franchisors will be able to advise WILL BE ABLE TO doesn’t necessarily exclude you from team, such as Lloyds, are an excellent you of the total investment costs ADVISE YOU OF borrowing more than £25,000. If you starting point. For expert support and including the proposed working THIS BEFORE YOU have a strong business plan but don’t guidance contact the bank’s Franchise capital needed to set up the business. COMPLETE have any personal assets to support Department directly, not your local This total cost would also include YOUR PLANS” the lending then the bank may be able

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to consider financing your plans LOCAL DEMAND and support their franchisees with using the Government - When you select the brand you wish to producing their business plan. Banks can backed Enterprise Finance progress with the franchisor will require provide business planning templates to Guarantee Scheme. you to produce a robust business plan, to assist business owners in writing their This scheme will usually require a outline how you will be successful in your plan; however franchisors will also have slightly larger deposit, but will allow territory. It is important that you research developed templates to support. viable proposals to be supported. your local market. Some business owners Speak to the bank’s Franchise neglect this step and as a result have FURTHER SUPPORT Department for guidance as to little understanding of the local demand, Lloyds Bank has created an online whether you would be eligible for competition and the changing needs of training program with the BFA to this scheme, as you would need to their potential clients before they start up. support your research phase which can ensure that you have fully invested Within the care sector this could completed at your own leisure free of your available assets into the include the number of potential elderly charge. The program covers all aspects business before being eligible. This clients within a territory, level of affluence of buying a franchise including legal would include all of your personal for prospective clients or quality of considerations, financial awareness savings and investments, along with existing competitors. By carefully and testimonials from established any available equity in properties researching all of these areas in addition franchisors. Please feel free to speak to that you own. to others suggested by the franchisor us if you would like any further support you will be able to ensure there will be with your business ambitions. CARE FRANCHISEES sufficient demand for your services and From our experience in supporting maximise your chances of successfully care franchisees we have seen gaining the finance needed to set up the that people sometimes neglect the business. Most franchisors encourage importance of their personal financial situation. This can be particularly crucial in the first year of business as typically a vast proportion of care franchisees will take a number of months to acquire CQC registration and build up a client base in their territory, before being able to service monthly commitments from sales. However, you should ensure that the business has sufficient working capital from the offset to allow you to draw enough cash to meet personal commitments without causing any pressure. Banks will review both the business and personal finances to ensure there won’t be any issues and you should plan to have additional reserves in contingency. Franchise banks can also look at offering capital repayment holidays in the early months of business to alleviate the pressure on the cash flow. The length of time that this is offered for will range from brand to brand but banks will be able to advise you of this before you complete your plans.

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How to fincance Homecare_ADVICE.indd 12 14/11/2018 12:53 BRAND PROFILE

[ BRIGHTSTAR CARE ] MEETING THE DEMAND OF THE UNITED KINGDOM’S AGEING CRISIS The availability of quality elder care is becoming a top priority as the U.K.’s ageing population swells. Franchises such as BrightStar Care provide solutions for senior living and create opportunities for master franchisees in the U.K, says Pete First, Vice President of Franchise Development at BrightStar Care.

he world has reached a expand and diversify their business marketplace limit their service unique time in our history portfolio into an industry that he or she offerings to companion care for where the number of may have not considered before, home seniors, BrightStar Care provides BRIGHTSTAR CARE ageing adults is beginning health care provides a litany of benefits the full range of in-home care IS THE RECOGNIZED Tto outpace the rate of newborns. and opportunities. services ranging from meal prep and LEADER IN THE According to Age UK, there are now BrightStar Care is the recognized light housekeeping to medication HOME HEALTH CARE more people in the United Kingdom leader in the home health care management and infusion nursing. FRANCHISE INDUSTRY, aged 60 and above than there are franchise industry, providing a proven BrightStar Care’s commitment PROVIDING A PROVEN under 18, and by 2040, nearly one in business model, infrastructure, to delivering the highest standard BUSINESS MODEL, four people in the United Kingdom training and ongoing support of care across a wide spectrum of INFRASTRUCTURE, will be 65 or older. These simple necessary to help franchisees launch services is something that other TRAINING AND statistics prove that more British and run successful home care players in the industry simply ONGOING SUPPORT citizens are requiring advanced care businesses. While most home care cannot compete with. To execute NECESSARY TO than ever before. companies competing in today’s this commitment, each franchise HELP FRANCHISEES With the demand in elder care LAUNCH AND RUN increasing, hospitals and senior living SUCCESSFUL HOME facilities are faced with a stress on CARE BUSINESSES” available resources to provide care for all those in need. Couple this with the fact that more seniors prefer to remain in their homes as they age, and a strong demand is created for private companion care and/or skilled in- home medical care providers.

WHY IN-HOME HEALTHCARE? Home health care providers play an increasingly critical role to ensure older adults get the care and companionship they want and need. Because of this demand, senior home care has become one of the fastest-growing segments in franchising on a global level. For experienced franchisees looking to

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As the United Kingdom’s ageing population of a higher standard in the healthcare industry. continues to climb, the demand for quality in-home No prior medical experience is necessary. health care has never been greater. BrightStar Care is seeking experienced and BrightStar Care, a full-service home care franchise sophisticated master franchisees to develop territories that provides both medical and non-medical care for in the United Kingdom. seniors with more than 340 locations in the United Master franchisee candidates must have a States and Canada, provides an exceptional franchise minimum liquidity of £1,000,000 and minimum net opportunity for qualified partners looking to be a part worth of £3,000,000.

location employs a Registered have experience in managing their family challenges, yet they are creating Nurse Director of Nursing who own organizations, who are looking to outstanding business opportunities and creates unique, personalized plans diversify their business portfolio, and new compassionate services as well. of care for each client and oversees who clearly understand the franchisor/ In-home care providers like BrightStar the professional care teams of well franchisee relationship, along with Care who offer a full range of services at qualified, experienced caregivers the training and support process the highest clinical standards are at the who deliver expert, compassionate for franchisees. forefront during this critical time when and personal care. To validate more ageing loved ones require more BrightStar Care’s superior home care BRIGHTSTAR CARE sophisticated care. With an increased ability, The Joint Commission – an INTRODUCED IN CANADA demand for quality home care in the international standards organization Recently, the company entered the United Kingdom, now is the time to see – recognized BrightStar Care as an Canadian market with plans to expand how you can become a part of a rewarding Enterprise Champion for Quality for across all 10 Provinces within the franchise opportunity that is based upon the fourth year in a row. BrightStar next 5 years. “BrightStar Care stands integrity, respect and superior care for all. Care is the only home care franchise out because of the higher standard of to earn this distinction every year care that is ensured by the Director of the award has existed. Nursing, who oversees all of the care AT A GLANCE: within each agency,” explained First. UK OPPORTUNITY “In a highly competitive industry, Name of franchise: BrightStar Care Due to BrightStar Care’s proven track these standards are not mandatory, Established: 2005 record of being the leading provider so BrightStar Care raises the bar and Number of franchised outlets: More than 340 locations of expert, compassionate care in offers a quality of care beyond that of Locations of units: United States and Canada the United States, along with the the competition.” Per unit investment range: The estimated startup costs organization’s solid infrastructure and for a BrightStar Care home healthcare business range resources, the brand is at the forefront BECOME PART OF A from £75,000 to £140,000 for individual franchises of meeting demand for in-home care HIGHER STANDARD depending on real estate prices and salary ranges in your needs abroad – specifically in the The need to meet the health and area, as well as the size of the territory you serve. United Kingdom. BrightStar Care is wellness demands of the growing Minimum required capital per unit: Qualified applicants must have liquid assets of £75,000 and currently focused on efforts to secure senior population remains an a net worth of £400,000. deals with master franchisees for increasingly important topic in the *Even though the investment range and minimum required capital are large territories within the United United Kingdom. More and more listed above on per unit cost, BrightStar Care is currently seeking a well- Kingdom, who can then sub-franchise families in the U.K. are seeking in-home qualified master franchisee to acquire the rights for the United Kingdom. after opening two to five of their own care providers that can remain vigilant Web: www.franchise.brightstarcare.com locations. The ideal candidates to lead to a loved one’s ever evolving needs Contact: Pete First, [email protected] or call on our toll free line at 0800 086 8289 development of the United Kingdom and adapt their care plans accordingly. would be sophisticated operators who Ageing trends present plenty of

globalfranchiseMAGAZINE.com 15 BRAND PROFILE

[ KARE PLUS ] JOIN THE BOOMING SENIOR CARE SECTOR WITH KARE PLUS Kare Plus, the multi-service, multi-income healthcare franchise, is enjoying global expansion

are Plus is much more It’s not just our array of service than just a senior care offerings that sets us apart. Over the provider. Kare Plus last 25 years, Kare Plus has developed offers a full range of many innovative approaches to its Khealthcare services including medical daily operations. From bespoke staff supply, specialist and non- central management and IT specialist nursing, supported living, systems, to measured compliance home care, critical care and more. procedures that keep customers, Established in 1989, Kare Plus has staff members and franchise owners become Britain’s most established safe in an industry with regulation multi-service healthcare franchise and compliance protocol that can offering a truly multi-service, multi- otherwise be difficult to keep track of. income franchise opportunity in With over 70 branches across an industry that is growing at an Britain, Kare Plus’ business exponential rate thanks to a global model and innovations perfectly ageing population. complement an industry where franchise owners are experiencing HOW IT WORKS ever-increasing profits and increased country or region; with the expectation Kare Plus’ healthcare establishment service requirements. The British to develop the brand, its reputation supply service allows franchise network is growing faster than ever. and service offering in-line with the owners to recruit and supply nurses, It is thanks to such strong growth existing business model. healthcare assistants and support within Britain and increasing Known as The Caring Company, KARE PLUS FRANCHISE workers for placement in medical and pressure on healthcare services Kare Plus’ ethos is based on OWNERS CAN PROVIDE healthcare settings such as hospitals, worldwide, that Kare Plus master caring foundations. Alongside an THEIR OWN CARE AT care homes and nursing homes. With franchisee and franchise owner entrepreneurial spirit, a strong HOME SERVICES – nursing shortages worldwide, this opportunities are now available in business acumen and healthy FROM RESPITE CARE, is a fundamental part of the proven America, Europe and Asia. working capital, all Kare Plus master TO LIVE-IN CARE AND business model. In order to qualify as a Kare Plus franchisees require compassion EVEN OPERATING On top of establishment supply, master franchisee, substantial and empathy to help develop their THEIR OWN PRIVATE Kare Plus also offers much sought- working capital is required to cover business in the interests of customers DWELLINGS after care at home services. In a the necessary local pilot operations and staff. Our existing franchise WITH KARE PLUS’ world with increasing pressure on and franchise infrastructure, owners come from a variety of SUPPORTED LIVING healthcare services, more and more alongside experience of managing backgrounds, including healthcare, SERVICE” nursing and care at home is required to and developing large organisations retail and finance. ease the pressure on hospitals and care – with proven work in utilising an homes, alongside reducing patient array of business skillsets, including discharge times. With the correct finance, marketing and human MORE INFORMATION registration, Kare Plus franchise resources desirable. owners can provide their own care at If this criteria is met, training is If you would like to find out more about the countries home services – from respite care, to undertaken and Kare Plus master and master franchisee opportunities available with live-in care and even operating their franchisees are given full access and Kare Plus, contact the International Franchise team own private dwellings with Kare Plus’ rights to the operations and sub- on +44 1952 781 118 or [email protected] supported living service. franchise sales within their purchased

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FRANCHISING HOMECARE: CHALLENGES AND OPPORTUNITIES

With rapidly-ageing populations in the West, the demand for homecare services is increasing. But it this a sector to franchise in? Edward ‘Ned’ Levitt assesses the market

ging baby boomers are countries. This pace of growth has acquire sophisticated technology and rapidly approaching been fuelled in part by the relatively the ability to more easily keep up their most medically low barrier to entry. with market trends. HOMECARE LENDS challenging years and Inevitably, would-be franchisors However, there are some very desperatelyA want to avoid living their have jumped on the homecare train, specific and difficult challenges ITSELF WELL TO THE BENEFITS OF final years in an institution. Medical in order not to be left behind at the to succeeding with a franchise FRANCHISING SUCH systems are stretched to the limit, station. So, is there anything about expansion in this sector: AS SYSTEMIZATION, if not nearly bankrupt. Patients are a homecare business that makes it OPERATING UNDER being discharged from hospitals more or less franchisable than any The shrinking labour pool A RECOGNIZABLE quicker and sicker. What a time to be other business? The answers are yes, 1 Homecare businesses are BRAND, THE in the homecare business! no and it depends. high touch businesses and labour ABILITY TO ACQUIRE The possibilities of establishing Like many other businesses that intensive. Finding, training, SOPHISTICATED such a business and running it have flourished under a franchise motivating and monitoring the TECHNOLOGY AND profitably have been noticed by model, homecare lends itself well performance of personal care workers THE ABILITY TO MORE many entrepreneurs, as evidenced to the benefits of franchising such are more difficult in this type of EASILY KEEP UP WITH by the recent rapid proliferation of as systemization, operating under business than in many others. Of MARKET TRENDS homecare businesses in developed a recognizable brand, the ability to course, this means that a franchisor

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franchising homecare .indd 18 14/11/2018 12:58 who has figured how to overcome these challenges for their franchisees will go to the head of the pack and be more successful.

Brand vulnerability 2 Establishing and protecting the system’s brand is absolutely key to the growth of a successful franchise system. The margin for error is narrower or broader depending upon the nature of the business being franchised. It is hard to imagine a business that is more vulnerable to workforce mistakes or bad conduct than the frontline personal care workers in homecare businesses. For homecare franchisors, this could result in an early demise or lend itself to a competitive edge depending upon the resources deployed in developing and supporting the quality of personal care, which is always promised, but not always delivered.

Managing expectations 3 and resources Those experienced in the homecare industry know that growing such businesses is a slow process. It takes time to create brand awareness and to establish relationships for referrals. homecare businesses may find future. However, there will be As a result, homecare franchise that the need for personal care winners and there will be losers. The systems need a longer timeframe workers, who can work with clients difference may lie in who sees the to attract and nurture quality with advanced dementia, suddenly curve and stays ahead of it and, like franchisees through the longer and increases. Homecare businesses that any business, matches the capacity to leaner startup phase than other opted not to provide medical or quasi- provide services with the demand for franchise systems. Everyone, from medical services to their clients them and runs their operations in an the franchisor to each franchisee, has might find that their client base is efficient and effective manner. to possess a great deal of patience and getting smaller or that competitors, sufficient working capital to survive who do provide such services, are the early years of development. winning over their client base. ABOUT THE AUTHOR Government regulation Sources of revenue There is a greater concern in 4 6 Private pay services may become Edward (Ned) Levitt is a Certified Franchise this industry than others about the less lucrative, as the population Executive, a partner at Dickinson Wright LLP, possibility of changes in government grows older and sicker and less able Toronto, Canada, and provides legal services to policies and regulations. After all, to cover the costs. It is expected that Canadian and international clients on all aspects of the sector relies on relatively low there will continue to be more and Canadian franchise law. He was General Counsel wages for a workforce, that is often more insurance providers for long to the Canadian Franchise Association (2000-2007) not highly skilled, to help some term needs. This is good in the short and is a member of the American Bar Association of the most needy and dependent run, but may lead to the insurance Forum on Franchising, the International Bar citizens. Some examples are the companies gaining enough leverage Association and the International Committee of the recent increases in minimum wage to exert downward pressure on fees International Franchise Association. As a member requirements and the maximum charged for homecare services. Of of the Ontario Franchise Sector Working Team, hours of work per week for personal course, governments may decide to Ned was instrumental in the creation of Ontario’s care workers. fund more homecare services, but franchise legislation and has had significant input in then legislate to control their costs. the franchise legislative process throughout Canada. Market changes Among his many publications is the leading text, 5 The market changes for Canadian Franchise Legislation (2001, LexisNexis/ homecare businesses can be frequent CONCLUSION Butterworths). Ned can be reached at 416.646.3842 or [email protected]. and substantial. For example, Overall, franchising in the homecare with the population rapidly aging, sector is alive and well, with a bright

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HOW TO FRANCHISE YOUR BRAND IN THE U.S.

Taking your franchise brand to the USA? Be sure to read these pages before you do.

t is broadly agreed that the population is approximately 324 FRANCHISE REGULATIONS USA is the first home of million people) coupled with a shared – PRE-DISCLOSURE AND business-format franchising. language and similarities in culture, REGISTRATION Most world-renowned the USA is certainly worthy Unlike the UK, franchising is regulated UNLIKE THE UK, Ifranchise brands originated there and of consideration. in the US, both at federal and state level. FRANCHISING franchising accounts for over US$890 If you are thinking of taking The regulations impose registration or IS REGULATED billion in direct economic output your franchise brand stateside, disclosure obligations on franchisors to IN THE US, BOTH (2015/2016). There are approximately there are a number of factors you varying degrees. AT FEDERAL AND 780,000 franchise businesses in ought to consider. The most famous of the regulatory STATE LEVEL. THE the USA, which employ 8.8 million requirements is pre-sale disclosure REGULATIONS people. US franchising also often THE LEGAL where franchisors must issue a IMPOSE outperforms the economy in terms FRAMEWORK AND THE Franchise Disclosure Document (FDD) REGISTRATION of overall growth and in 2017, it was FRANCHISE AGREEMENT with respect to the franchise offering. OR DISCLOSURE projected to grow by 1.6%. The USA is a federal state, i.e. a union The disclosure requirements are OBLIGATIONS ON The popularity and steady growth of 50 different member states. The intended to increase transparency FRANCHISORS TO of franchising in the USA is an legal system distinguishes between and prevent deceptive and unfair trade VARYING DEGREES” attractive prospect for a UK franchise federal laws, which apply across the practices, as well as to help franchisees brand. With a huge market (the country, and state laws. This means assess the investment prospect. that a franchisor must comply The FDD document requires disclosure on a number of aspects with a set of federal laws as well as of the franchise including: the distinct laws of the state they wish to operate or do business in. The identity of franchisor, its As each state law is somewhat officers, and its experience different, the requirements of doing Current and prior law suits business and franchising in one All fees payable and an estimate state will differ to the requirements of the initial investment of another. Financial statements of These differences cannot be taken the franchisor for granted as they concern not only Details of the franchise business franchise regulations, but other A copy of the franchise agreement business laws, for example, business opportunity laws and relationship FUTURE OUTLOOK laws – all of which impact a Even though the new process has been franchisor’s contractual relationship in place for months now, uncertainty with the franchisee and the rights and among lenders and those in the industry obligations of the parties. remain. Where do we do from here? Are Accordingly, prospective there going to be more changes? What franchisors must seek comprehensive is guidance going to be moving forward? legal advice from legal professionals The SBA has said they have been familiar with the state(s) they wish and will remain open to franchisor to franchise in as the franchise feedback, and there is optimism in proposition and franchise agreement the industry the SBA will adjust their will need to comply with that SOP’s if necessary. A specific issue state’s laws. that will need to be addressed is that as

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How to Fund Your Franchise_ADVICE-2pp.indd 20 14/11/2018 14:01 the franchise agreements get farther as follows: essentially means that the franchisor and farther away from the approved grants a licence to a “master documents in 2015 and 2016, fewer Direct Franchising franchisee” to use the franchisor’s and fewer franchisors will be able to The Area Developer brand and system and grant sign the SBA Certification Form 2463 Master Licensing franchises to “sub-franchisees” in the and attest there have been no changes, foreign territory. since there are going to be changes DIRECT FRANCHISING The “master” then takes on the over time. What the SBA will do to A UK franchisor can choose to enter obligations of “franchisor” in territory. help these franchisors remains to into a franchise agreement directly It recruits the franchisees; delivers be seen. with US-based franchisees, or it on its obligations as franchisor under Until then, all we can do is keep can establish a US subsidiary or the agreement; it ought to be able to following best practices and prepare branch office in the US. Many foreign provide invaluable knowledge and to be adaptable in the ever-changing franchisors often do establish a US assistance with adapting the system franchise landscape. subsidiary if choosing this model, to meet local requirements, and it is Failure to comply with the however, it is imperative that you take accountable to the franchisor for the disclosure obligations would professional advice from US legal growth and performance of the brand constitute an unfair or deceptive act counsel and accountants in the territory. or practice in violation of Section 5 of before deciding. This is because This option has its own risks and the Federal Trade Commission Act. there will certainly be tax, complications, and while it might Penalties range from fines and bans employment and immigration assist the franchisor in that the on engaging in franchising to money restrictions and implications. financial burden and risk is shared, damages for victims. The penalties The main advantage of direct the franchisor overall has less control can be applied to the franchisor entity franchising is that the franchisor over the brand/system in the territory. or to its officers, directors or managers can retain more control over the with direct control. growth and development of the PREPARING A STRATEGY In addition to the FDD, some states franchise network. However, being Expanding your franchise into the impose additional pre-disclosure able to do this successfully will US is likely to be an expensive and requirements on franchisors while require substantial resources as time-consuming project. To protect others, including California and New the franchisor will need to be able yourself from wasted costs, create a York, require a franchisor to register to recruit franchisees and fulfil its clear plan for action. with a local government department obligations under the franchise before it can begin offering franchises agreement, e.g. training; providing Determine your franchise in that state. guidance and support; continuously structure – this will depend on the improving the system to meet market advice of your professional advisers, FUTURE OUTLOOK demands, and adapting its operations your financial and operational A registered trade mark is essential in view of local regulations and resources, as well your relationships for the protection of your brand. Once market conditions. This is a tall ask with potential partners, i.e. masters or you have a registered trade mark, it and almost impossible to do from area developers; prevents other people from using the afar, which is why many successful Apply to register your trade same mark, or something similar, franchisors who choose this model mark; and in relation to the same categories of also invest in local or regional “HQs” Determine your point of entry, goods and services. Before launching to deliver. i.e. your franchise agreements and in the US, you ought to: disclosure documents will need to be AREA DEVELOPER compliant with the specific state(s) Investigate whether you can Just as with direct franchising, you franchise in. register your brand as a trade mark the franchisor contracts directly and whether there are any conflicting with the franchisee except the trade marks; and franchisee is granted the right to Apply to register your trade mark. open multiple franchise units in the ABOUT THE AUTHOR territory, usually in accordance with We recommend you carry out the a development schedule. In this Ayla Karmali is a consultant at Goldstein Legal. She is a conflict search as early as possible to scenario, the franchisee will likely be dual-qualified lawyer, qualified to practice in England & mitigate wasted costs. more experienced in the industry and Wales and New York and her practice focuses on general If there is already a potentially will itself have substantial resources commercial and corporate matters with a specific focus conflicting brand, your options to meet the development schedule. on franchise agreements, distribution agreements, will either be to; re-brand, obtain This method is usually a precursor services agreements and trademark protection. Ayla is a bfa accredited Qualified Franchise Professional (QFP). legal advice as to whether there is to the grant of a master licence, and Goldstein Legal is a straight-talking commercial law firm still scope to register, or enter into as the area developer is usually well based in Berkshire. Our services cover business and resourced, it may be more involved a co-existence agreement with the commercial, franchise, employment and commercial conflicting brand’s owner. in adapting the system to meet local property law. We offer a full suite of expert legal advice requirements. for business, which means we can provide our clients FRANCHISE STRUCTURE counsel along every step of their commercial journey. The appropriate franchise structure MASTER LICENSINGOPER www.goldsteinlegal.co.uk will depend on a number of This is perhaps the most popular considerations. The main models are method of franchise expansion. It

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THE RELATIONSHIP THAT HAS TO WORK

Mutual understanding between master franchisee and franchisor is vital, says Dr. John P. Hayes

s desirable as it may be often losing a huge sum of money. and EmbroidMe. In addition to to acquire the rights “All is not well in the relationship hundreds of outlets in the USA, UFG to a famous franchise between franchisors and master supports 41 master licenses covering DUE DILIGENCE, brand from one country franchises,” says Harish Babla, who more than 70 countries. PERFORMED ON A andA develop it in another country – a has tracked master franchisees From the moment he established COUNTRY INSTEAD concept known as master franchising for many years and who surveyed UFG, when he was a young OF A COMPANY OR – the fact of the matter is that too franchisors and master franchisees entrepreneur, Ray Titus knew that AN INDIVIDUAL, IS often it doesn’t work! in 2013. Half of the master franchisees his business would include master OFTEN OVERLOOKED Little is known about the size that responded to his survey said franchisees. Today, the company BY FRANCHISORS and impact of master franchising they would not acquire a master is known as “the global leader for WHO ARE NEW TO worldwide, but that doesn’t make it license again. Meanwhile, most entrepreneurs.” Almost 30 years INTERNATIONAL any less desirable for both franchisors of the franchisors said the ago, Titus hired Tony Foley to sell DEVELOPMENT” and prospective master franchisees. performance of their master international licenses, and to do so in At its best, master franchising helps franchisees was just average. a very deliberate way. a franchisor expand its network And yet, Duskin makes it look and increase sales internationally so easy! For nearly half a century, TARGET MARKET faster than any other concept, while this Japanese-based franchise “We have developed a metric system also helping a master franchisee conglomerate has gobbled up to evaluate a target market for establish a brand name in a new American franchise brands and master franchising,” explains Foley. territory almost overnight. But at its turned them into goldmines. The “We look at all of the following: the worst, master franchising becomes company that likes to “smile on country’s political structure, state of a nightmare for both franchisor and people,” is the master franchisee of the economy, currency comparison master franchisee, with the latter numerous service-related and food vs. the U.S. dollar, franchise laws, franchises including names everyone the ability to remit money to the knows, such as ServiceMaster, USA, franchise development within Terminix, Merry Maids, TrueGreen, the country, and the language of the Home Instead, Mister Donut, Café Du country.” If any metric doesn’t meet Monde, and more. UFG’s standards, that country doesn’t Duskin, and the franchisors who go on the list for potential master sell to Duskin, have figured it out. And franchise development. so have dozens of other franchisors This due diligence, performed on and master franchisees in an untold a country instead of a company or number of countries. In these an individual, is often overlooked situations, both franchisor and master by franchisors who are new to franchisee pay attention to some key international development, but who principles that can make or break any want to reap the projected benefits of master franchising relationship. flying the company’s flag in another United Franchise Group country. Sometimes it’s overlooked (UFG) in West Palm Beach, because the franchisor is pursued Florida, is a perfect example of a by an aggressive prospect who just franchisor that has figured it out. knows that the business will succeed While the company owns seven in his market, and that he’s the guy brands, all but one in service to make it happen. These scenarios, industries, most people know UFG which occur regularly for even up- for their flagship brands: Signarama and-coming brands, are often the

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FranchisorFranchisee_ADVICE.indd 1 14/11/2018 14:04 downfall of master franchising. behave in a comfortable environment, They don’t work not only because and among family and friends. It’s the franchisor isn’t prepared for an also an opportunity to meet the team international opportunity, but also that could not come to the Discovery because the prospective master Day. These individuals will have a franchisee is even less prepared. direct influence – positive or negative When it comes to evaluating – on the business, and it’s important master franchise candidates, few that we know that in advance. Our franchise sales executives are as most successful businesses are team savvy as Foley. He speaks to hundreds operations, not individual operations.” of prospects annually, and rejects Of course, it helps that Foley knows most of them. In his best sales year, what to look for, what to ask, and he sold 15 master licenses, but it takes where to probe for information as time – usually months – to complete he conducts his due diligence. It also his due diligence on just one prospect. helps that UFG is willing to invest the chunk of money “As I get to know candidates who money that allows Foley, and other to support a master are interested in a UFG master members of the international team, to franchisee who’s license,” he explains, “I’m acutely vet master franchise candidates. thousands of miles from aware of what a candidate might not Therein lies the first clue to a the corporate office. Many be able to provide that’s essential to prospective master franchisee that franchisors can’t afford our mutual success. It’s a given that a franchisor isn’t equipped to succeed the support. candidates must be able to afford a in an international relationship. It’s master franchise investment, which essential that a franchisor invest in Disconnect on performance is usually going to mean several getting to know a prospect. Otherwise, of master franchisees. A whopping hundred thousand dollars and often the prospect is better off finding 59% of franchisors said their master more than a million dollars. But I’m another franchise brand to buy. franchisees were average performers. also looking for business experience, Oftentimes a prospect discovers a Oftentimes the master franchisee an understanding of the marketplace brand, meets the franchisor (who has understands the business, but doesn’t where the candidate plans to expand little or no international experience), know how to sell the business locally. our brand, managerial qualities, sales visits the corporate office, and in less Disconnect on operational focus to qualities, and the ability to speak than a month or two, with neither grow the brand. Master franchisees English. A master franchisee needs party really knowing the other, believe that operational improvements a multitude of skills. Miss one of the acquires rights to develop the make it easier for them to recruit skills and eventually the whole thing business at home. franchises, but franchisors seem falls apart.” to think otherwise, especially THE DISCONNECT In addition to the aforementioned when the improvements come at requirements, Foley has two And those are businesses that Babla, their expense and may not be other tests for prospective master based in Singapore, expects to be universally compatible. franchisees. “The candidate must average at best, and in the long run “What gets overlooked in the race complete a Discovery Day at our not succeed. “It is clear,” he says, “that for increasing franchise outlets,” corporate offices. This is critical for franchisors and master licensees Babla says, “is the development both the candidate’s benefit and ours. view their businesses from two of the master licensee business, We get the opportunity for several completely different angles, resulting which includes training, supporting, of our corporate and support team in a Big Disconnect.” and mentoring master licensees members to meet the candidate, Babla’s survey found four areas to become successful clones of typically over a two-day period. The of ‘disconnect’ between franchisors the franchisor.” interaction becomes an interview and franchisees. By following these essential points for both parties and really uncovers of information, even when they information about personality, skill Disconnect on what it takes require an investment, franchisors and sets, values, ability to communicate, to be successful. Franchisors see master franchisees are more likely to passion, and much more. The recruitment as most important, i.e. succeed internationally. candidate also gets to see what we a master franchisee succeeds by value and how we operate.” selling unit franchises in the local marketplace. But master franchisees MASTER LICENSE believe operational improvements ABOUT THE AUTHOR Candidates who visit UFG can’t help are most important. but get excited about the possibility Disconnect on ongoing support. Dr. John P. Hayes is a best-selling author of of buying a master license, but there’s Half the master licensees Babla numerous books about franchising, and blogs still another test. “I need to visit them surveyed said they were dissatisfied at HowToBuyAFranchise.com. He is a business in their market,” says Foley. “This is with the franchisor’s ongoing professor at a private university in Kuwait. invaluable as it often reveals how they support. Of course, it takes a good

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WHAT DID FRANCHISING CONSULTANCIES EVER DO FOR US?

The answer, as Brian Duckett explains here, is quite a lot. Support, advice and strategic planning are just some of the services available to the franchisor and franchisee

et’s start with asking learn the science, art and skills of answer for every individual business. why a business becomes franchising and as Brian Smart, the That’s where experienced franchise a franchisor and why former director-general of the British consultants come in, followed AN EXPERIENCED people become its Franchise Association, used to say eventually by their colleagues, FRANCHISE Lfranchisees. The business has “You have to acquire franchising the brokers. CONSULTANT WILL developed a successful system skills for your business and you have When planning to franchise a system HAVE BOTH THE that others would benefit from but four choices. You can buy it in into other countries it will also be KNOWLEDGE AND THE operating. The franchisees avoid the from qualified franchise consultants; necessary to know how to structure the ACCESS TO WIDER pitfalls and mistakes that have been you can employ someone who has international franchise package and EXPERTISE TO ASSIST made while that system was being been through the process before; you how to build an international support WITH PREPARING A developed; they will have continuous can have someone from your business infrastructure. Although international BESPOKE PLAN FOR support at all stages of their future trained in franchising; or you can franchising has grown exponentially EVERY CLIENT” business development; and they will make a mess of it”. over the last twenty years or so there therefore have a far greater chance of Whether new to franchising are still relatively few people who have succeeding in their new business. altogether or an experienced been around long enough to know how An experienced consulting firm’s franchisor looking to develop it all works, and more importantly, clients similarly buy into a system for internationally, franchisors need a why it works. Lots of people have now developing and operating franchised plan. They need to establish how worked in one or two jobs or for one or networks which has been tried, tested many franchisees they could have two franchisors but they won’t know and refined with many clients over and where they will be; what kind of why those businesses worked the way many years. They receive continual franchisee they will be looking for; they did, nor why they were or were support from a team of people with how they are going to market the not successful. years of practical experience of opportunity to franchise management; and they gain them; then access to the results of all the research how they will FIVE REASONS TO USE A CONSULTANT and development into running such eventually networks that are gleaned from recruit, train and Impartial advice on your plans associates around the world. In support those They’ll save you money not cost you money effect the consultant is ‘franchising franchisees. Over franchising,’ provided of course they and above all of Multi-disciplinary team of experts are not just a marketing consultant that, they need to Experience in all business sectors who doesn’t have enough work or know how much Contacts in all franchise markets an unemployed franchise executive it is all going to who’s just waiting for the next job to cost and how come along. long will it take to see a return on FIVE THINGS A CONSULTANT NEW FRANCHISORS the investment. CAN DO FOR A FRANCHISOR However successful their existing As with most business is, a new franchisor is aspects of Provide realistic financial forecasting getting into a new business. Whilst franchising Recruit domestic and international franchisees remaining in their current business there is no ‘right’ Recruit and train support staff sector they are also moving into the answer to all of franchising business and that’s a those questions Be a sounding board whole world away from what they but there may Build value and find buyers for franchisor exit are currently doing. They need to be a right

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What Did Franchising Consultancies_ADVICE.indd 26 14/11/2018 14:10 An experienced franchise Whatever the franchisor’s vision consultant, ideally one who is a part of for the future they will need an a network of similar people in a wide experienced and capable management range of countries, will have both the team in place to meet the long and knowledge and the access to wider short-term objectives. A truly multi- expertise to assist with preparing a disciplinary franchise consulting bespoke plan for every client. Once firm can bring great benefits here as the preparation has been done and they will often know the rising stars the plan and budget are in place, the in the franchising community who process moves on to how to generate are ready to step up to their next role. and process enquiries from suitably Often the best people are not actively qualified candidates. looking for a new job but they will take a call from the executive search ABOUT THE AUTHOR EMERGING AND MATURING specialist who can give them a reason Brian Duckett is chairman FRANCHISORS to consider a career move. Sometimes of The Franchising Centre, Maturing franchisors can also the ideal person may already be in the Europe’s leading firm of benefit from using an established franchisor’s team but in an operational franchise consultants. He has and experienced consultancy role outside of the franchising made his living from franchising firm. Working with businesses function. Here again a good consulting since 1976, initially as a at all stages of their franchise firm can provide the necessary franchisee, then a franchisor development, sometimes simply franchise-awareness training and the and for the last twenty years offering a sounding board to the all-important understanding of the as a consultant to potential owners when considering new franchisor-franchisee relationship. and practising franchisors. strategic developments, such as Of course a franchisor can do all, or His firm co-ordinates an international expansion or acquiring most of, the above themselves if they informal network of franchise other networks to form multi-brand have enough experienced staff and practitioners, which has stables. At an even later stage, a well- plenty of resources but this is rarely representation in more than connected firm can provide access the case. A professional consulting 40 countries worldwide. to qualified potential purchasers and firm can be there to be used whenever He can be contacted by e-mail help with planning an eventual exit necessary throughout the entire [email protected] for the founders from their business. franchising journey.

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HOW TO FIND YOUR MASTER FRANCHISEE Expanding your homecare service overseas will normally require the services of a master franchisee, says Carl Reader

f you are intending to expand of language barriers lies with the prospective master franchisees should your thriving care home master franchisee. have a comprehensive business plan to business overseas, using a A master franchisee has a very support your own robust international THE PRIMARY master franchisee can be a varied and challenging role, and that’s development programme. Their plan RESPONSIBILITY FOR Igood way to go. Master franchises why it’s key to find a good one. As a should be substantiated with thorough ESSENTIALS SUCH are an increasingly popular structure minimum, here’s four things to look research (which should hopefully align AS AN EXTENSIVE option in the franchise world, and it’s for in a master franchisee: with your own research findings). KNOWLEDGE OF not difficult to see why. Before sub-franchising, it’s usually THE ECONOMIC Generally, a master franchise is THEY MUST HAVE A FULL expected that a master franchisee ENVIRONMENT, offered for an entire country, and so KNOWLEDGE OF THE operates a pilot franchise to test the IN-DEPTH MARKET the idea that a franchisor can enter LOCAL REGION concept within the new territory and RESEARCH AND EVEN an entirely new market without The prospective master franchisee within the new markets. Doing this is THE PROBLEMS OF the need to overcome many of the must hold a strong knowledge of extremely useful for pinpointing and LANGUAGE BARRIERS common challenges of doing so is all aspects of running the business addressing the subtle (and not-so- LIES WITH THE MASTER highly attractive. While of course in your target area or country. Any subtle) differences in business between FRANCHISEE” adequate research must be done on nations. For example, although the UK the part of the franchisor, the primary and US share a common language, responsibility for essentials such the business customs, culture as an extensive knowledge of and demographics of the the economic environment, two nations are very in-depth market research different. There and even the problems may be different

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Find your Franchisee.indd 28 14/11/2018 14:14 sensitivities and legislation, or it may just be that the expectations of the home care industry are not what might be expected elsewhere.

THEY MUST HAVE A STRONG BUSINESS BACKGROUND AND APPETITE A master franchisee should be expected to have a strong corporate level background, together with significant evidence of management and leadership in their career. Ideally, this will be in a sector relevant to your own. Once they’ve run their pilot outlets, they will effectively be taking on many of the responsibilities that a franchisor traditionally does, such as recruiting franchisees within their designated territory and supporting them to build their businesses. Therefore, they should have experience of recruiting, training, motivating etc. and especially experience within franchising, so that they can truly hit the ground running and scale the business effectively. Of course, in home care, (or indeed, any other sector), you also need their total passion for what your franchise does, as Once you’ve sorted the essentials above, Make sure when you’re hunting this is vital. you’ll have a strong profile for your ideal for a master franchisee you translate candidate. Finding the your documents to the local market THEY MUST HAVE right person will be a challenge, but – and I don’t just mean in terms ADEQUATE FUNDING it is possible. of language alone. Also carefully Not only is it likely to be a huge I’d start by doing some research consider cultural differences, investment in buying the master into finding out who the best franchise buying behaviour and different franchise in the first place, but a brokers are in the region or territory. demographics to make sure you stay master franchisee also needs to be well International franchising has certainly on the right path and find the right capitalised beyond this. This is so they grown in popularity over the past person to run the business in the are able to grow the network to its full decade or so, however there’s still right way. Be mindful of the fact that potential in the new area. Ensure your only a limited number of experienced local legal matters/requirements will due diligence is comprehensive and advisors out there, and the knowledge almost certainly be different too – detailed. I’d also recommend using this can be an expensive and difficult of these, together with their network of an experienced franchise accountant slippery slope, so invest the time and global contacts, is truly invaluable. Bear who understands the master franchise effort in getting it right from the start. in mind that enquiries will probably model in detail to ensure projections come in from across the world, and and anticipated ROIs are realistic. time differences and languages are just PARTNERS MUST BE SOMEONE two of the things that can complicate ABOUT THE AUTHOR YOU’RE WILLING TO WORK the process. Therefore, I’d recommend Carl Reader is the UK’s #1 champion for small WITH LONG TERM the use of local franchise brokers or businesses. He is a highly successful entrepreneur and At the end of the day, can you work with consultants to improve efficiency, as well as to tap into the benefits of a businessman, heading up d&t chartered accountants, them? That’s an essential requirement. a multi-award winning, medium sized accountancy firm local expert. Gut instinct that you can work well supporting thousands of businesses across the UK. His together speaks volumes here. Will I’d also recommend building mission is to demystify the business world and give they be a brand ambassador for you and your profile to become known in straightforward advice to help those looking to start or your franchise? This is a large and long- the region’s industry from a global grow a business. Carl lives by the ethos of ’rolling your term relationship and commitment, so perspective, as this can be extremely sleeves up and take action” and is the author of The ensure you are comfortable with both powerful. You could also consider Startup Coach and The Franchising Handbook, the personal and business relationships headhunting key leading managers both published by Hodder. www.carlreader.com that come with a master franchise. and franchise directors if needed.

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Find your Franchisee.indd 29 14/11/2018 14:14 ADVICE

HOW TO MARKET YOUR EXPANDING FRANCHISE Once you have have proven your concept on home ground, expanding domestically or internationally may be a logical next move. Tamara Smith offers a primer.

he next step for any NURSING AND CARE SECTOR Once you’ve identified locations you successful franchise is to Beyond registration, there can be think would be a fit, it’s time to consider international additional regulations dependent on research the market. Is it saturated THE FIRST STEP expansion. The benefits are what category your franchise is in. For with the competition and if so, do you TO EXPANDING Tobvious. Opening up additional obvious reasons, the nursing and care have a differentiator? How are similar YOUR FRANCHISE franchise units allows for an sector has ample additional rules. franchises performing? It’s key to INTERNATIONALLY IS additional revenue stream, along with Therefore, the first step to expanding select the right areas for expansion. RESEARCHING THE increased brand awareness. your franchise internationally is There is a wealth of information LAWS GOVERNING THE Before proceeding, there are a researching the laws governing the available to assist you in doing so, to COUNTRY AND STATE, number of things to consider. country and state, as well as your help ensure your success. Remember, AS WELL AS YOUR Franchising rules can differ greatly by industry. Furthermore, there are anyone can expand. Everyone does INDUSTRY” country or state. For example, in the nuances for every country, state and not succeed. US, there are 13 registration states. even city. Consider the spelling of The risk to your brand is as great Each state has very different rules for words, such as color or colour, along as the potential reward. If you’re exactly what that entails. with cultural differences. considering expanding, you must have

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Marketing a Care Franchise.indd 32 14/11/2018 14:16 a successful model in place already, date. Of course, you should market the approach must be quite different with brand awareness and happy any financial figures and ROI you than what you currently utilize. franchisees, as you move into are allowed to, but this is specifically uncharted waters where no one something you need to be aware of DIFFERENT RULES is aware of you yet. the governing rules about in your Regardless of the method, the first step target country. is to build awareness. Help prospects to NEW CONCEPT, NEW COUNTRY know and love your brand, before asking Consider your best current SPREAD THE WORD for the lead. Provide as much franchisees. Do you see them in your When you’re confident that you’ve information upfront, for free, with no target market areas of expansion? packaged your franchise, it is time to commitment, as you can. A good Once you’re confident that you’ve start spreading the word… potential franchisee candidate will selected the right area to expand into, The easiest starting point would be to consume everything you make available. are compliant with all rules and find a master franchisee. They will There are also different rules for regulations, and that your concept is a understand their country and culture allowed communications by country. fit, it’s time to dive in to marketing. You better than you ever can, and have a The UK has GDPR, Canada has CASL, may be flourishing currently, but must vested interest in your success. and the US has CAN-SPAM. Be sure remember that this will be a new that your marketing plans are compliant Master franchisees enter into an concept in a new country. You will with your target area of expansion. agreement to develop designated basically be starting from scratch, but franchise territories. Often they will luckily do have the credibility you’ve open the first franchise locations to built to help create awareness. help build awareness of the brand. If ABOUT THE AUTHOR you plan to manage the expansion ADAPT CONTENT Tamara Smith has a wide range The first step is compiling and editing yourself, be sure your team is prepared. of global marketing experience your existing content. If you have Your franchise development team will in the fields of investment funds, done your research, you already need to be available during the hours of music, alcoholic beverages, film understand the nuances of the the areas you are targeting and trained & television and journalism. She country you plan to expand to. to ‘speak their language’. began franchise marketing over Remember, it is favourite in the UK Geo-targeted ads are a great way to a decade ago and has since and Canada, but favorite in the US. test the waters in your target markets, worked with major international Small things like this may not seem before diving in with more expensive franchise brands, implementing important to you, but they are to your tactics. Be sure to remember, you are both traditional and non- target market. Adapt your content to new on the scene. With any PPC traditional marketing techniques your audience. campaign, you need to remember the to drive record-breaking franchise sales. Tamara is Utilize both the content that you funnel and appreciate the lead’s currently a partner used to build your brand in the first progress from the top to the bottom. at Just Franchise Marketing. place, as well as all of the case studies Facebook ads can be a great source of justfranchisemarketing.com and testimonials you have amassed to leads. When expanding internationally,

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