FOOD FRANCHISE Fast food Franchise QSR Franchise Coffee franchise Food-to-go Franchise Pub Franchise Restaurant Franchise HISE NC A R F Be Inspired S WINTERWINTER EDITIONI E O I T Meet Richard and Rosie P N P O RT U McLucas and find out what it’s like to be a Franchisee ONE TO WATCH FRANCHISEE Q&A Welcome to BAP, a UK based sandwich Making the decisions to become a franchisee chain with plans to grow rapidly over the can be a difficult one. We speak to some next 3 years individuals who have taken the plunge and learn about how and why they got into the industry Print edition £3.99 BUYING A MARKET WATCH WINTER EDITION FRANCHISE A look at how some of the 10 things you must largest food franchises are consider before you performing on the stock become a franchisee markets Editor’s message s we enter 2016 there is plenty to get excited about in the world of franchising, especially in the food and drink sector. Over the last 18 months the market Ahas seen significant growth and the number of new investors looking to open a franchise is rapidly increasing. Another area where we are noticing growth is in the number of small business owners who are looking to franchise their own businesses. Originally these developments came Editor about as a way of spreading the load and those that couldn’t manage another site offered Scott Rumsey someone else to operate under their brand and licence. Now the growth is down to [email protected] consumer demand. Coffee sales are rocketing and the big brands are offering a more Office: +44 (0) 333 003 0499 premium products. Factors such as speed, convenience and consistency are also high on the consumer agenda, meaning that franchises are turning over more each year. All things Commercial Manager being equal therefore 2016 could be the year for you whether you are a franchisor or a Lewis Wantling franchisee. Over the coming pages we will look at all of the latest news from the industry and hear from the experts to make sure you are best placed to grow as the market does. [email protected] Office: +44 (0) 333 003 0499 In a bumper edition which sees the magazine launch into retail we have included over 20 pages of news from around the industry and speak to some of the biggest brands who are Advertising sales currently offering fantastic franchise opportunities. Sandra Bouillet Avoiding risks when it comes to business can be hard but we look at the best ways to [email protected] avoid franchise risk in one feature, whilst another looks at the 10 things new franchisees Office: +44 (0) 333 003 0499 should consider before buying a franchise. Finance Over the last few months we have met many interesting individuals from the industry Laura Williams including the guest in our Be Inspired feature. We speak to a couple who have taken on a Muffin Break franchise and visit BAP, one of the fastest growing sandwich franchises. [email protected] Office: +44 (0) 333 003 0499 In the finance section we look at the importance of working capital and the effects it can have on your business if you don’t allow for it. The market watch feature gives you a Design roundup of how some of the biggest brands in the industry are performing on the stock Timeem Taleifeh market. [email protected] Expert legal advice comes from the team at Sherrards and we speak to McPherson’s about all of your accountancy queries. For those looking at getting into the industry, then why not visit a trade show. We preview the Franchise Show and speak to the organisers about what visitors can expect. We hope that you find the new look issue full of helpful information and as always, happy reading. Until next time, Publisher MVH Media Ltd. Unit 9 Wilkinson Court, Clywedog Road South, Wrexham Industrial Estate, Wrexham LL13 9AE The publishers do not accept GET IN TOUCH responsibility for advertisements appearing in this magazine. www.foodfranchisemagazine.co.uk Front cover The opinions expressed are not @franchise_food image courtesy necessarily those of the editor or the of Muffin Break publisher. /foodfranchisemagazine1 (Page 58) WINTER 2016 FOOD FRANCHISE | 3 ContentsWINTER 06 Industry News We round up all of the latest news from across the industry over the last quarter 34 Franchisee Q&A We speak to some individuals who have taken the plunge and learn about how and why they got into the industry. 06 48 10 things to consider before buying a franchise franchisees must consider before they become a franchisee 58 Be Inspired We talk to Richard and Rosie McLucas from Glasgow about what it’s like to be a Muffin Break Franchisee 34 62 Avoiding franchise Risk We look at the best ways for you to protect your franchise and avoid risk with some handy tips and tricks 72 One to Watch In this issue we look at the exciting plans for BAP, a UK based sandwich chain with the potential to grow rapidly over the next 3 years 58 74 4 | FOOD FRANCHISE WINTER 2016 58 76 Show Preview We take a look ahead to the Franchise Show which takes place in 62 mid-February 79 Finance We look at working capital and why it is vital for the security of your business 84 Legal The experts at Sherrards Solicitors talk to us about the some of the key points in the industry 84 Accountancy The experts from McPhersons give us some handy tips for the start of 2016 90 Market Watch A look at how some of the largest food franchises are performing on the 88 stock markets WINTER 2016 FOOD FRANCHISE | 5 NEWS round-up Hotcha franchise celebrates ten store deal The team at Chinese Takeaway franchise Hotcha, are in a celebratory mood after two highly experienced multi-unit franchise operators have signed a deal to open ten stores in the Liverpool and Cheshire area. Although Hotcha is only offering multi- a FTSE 250 pub company, where they store opportunities, this is the first deal of bonded over a desire to test their skills this size for Hotcha and everyone is excited and experience with a business venture of including boss, James Liang. their own. Conversation led to action and Businessmen, Chris Wright and Keith eventually Chris and Keith became franchise Janion, both from the North West, ticked owners themselves in the highly competitive every box on Hotcha’s wish list: multi-unit fuel and retail sector and built up a experience, food sector knowledge and a substantial portfolio of successful outlets. solid track record of building and managing Chris and Keith started to discuss how teams that could deliver fantastic results in a the real action was to be found getting in competitive environment. on the ground floor of a new and exciting Chris started his career with a large franchise operation. Many of the biggest supermarket group on the company’s ,and once upon a time most desirable brands, graduate trainee programme. He then were close to saturation point and they felt moved into regional management roles in investing would feel too much like buying force in their sector and go on to become the off trade before overseeing the food and a job. For a long time, Keith was quietly a household name alongside the burger, beverage operation of a large 5-star holiday exploring ways to independently compete chicken and pizza giants that had gone company. in the coffee shop sector, but their eureka before them. Keith began his journey in the on trade, moment came when Chris discovered As Keith and Chris approach their first managing a network of pubs and restaurants Hotcha, and the two realised they found store opening they are already happy to before taking a senior management role with exactly what they had been looking for. speculate how ten stores may eventually one of the world’s largest fast food franchises They wanted an ambitious franchisor who lead to more; this is very much a relationship that saw him dividing his time between the was at the beginning of a national expansion where ambition is matched by both UK and Canada. programme, yet had the credibility, business franchisor and franchisee. The two men met whilst working for model and brand to become the dominant Wrapchic continue expansion with Merry Hill Fusion food chain Wrapchic’s expansion plans are on target for 2016, with Harris Lamb having overseen the acquisition of their latest site. The business, which was founded by looking into launching abroad, and we’re from snack counters into fully-fledged Mahesh Raikar in 2012, has grown from committed to supporting its growth. atmospheric restaurants offering a bar one site in a central Birmingham mall to Harris Lamb has worked closely with the service. having a presence in the Bullring, on key business to secure an excellent location in “The response to our launch in Bradford high streets, in hospital food courts and on the Merry Hill shopping centre, as well as was fantastic and we look forward to the university campuses. other sites which will be revealed over the Merry Hill launch. We anticipate further Wrapchic opened its Bradford outlet next few weeks. growth in 2016 and we’re glad to have earlier this month the Westfield shopping He said that Harris Lamb is continuing Harris Lamb as a partner to help us do centre. talks with key landlords and providers so.