SUAVE Magazine

GET STARTED

Wed, 13 Sep 2006 03:19:30 GMT

Setting up a business these days is a cinch compared to how it was back in the 70s before the Thatcher years, What with numerous start-up grants and loans along with endless information, you would have to be deaf, dumb and blind not to know where the first point of call is to launch a start-up. However more people in the UK are ditching the start- up and concentrating on opening up a franchise. A US phenomenon, the franchise has become the buzz word of the decade; think of McDonalds, Favorite Fried Chicken and Subway and you get the picture.

The whole idea of franchising is that you run the business using methods that are tried and tested by another company who are the franchiser. You set up a business with a parent company and pay the franchisor for a package that gives you an exclusive right to use its brand name, methods of operation, technology or products for a certain period on a renewable contract. Once you are in you get a whole load of perks thrown in such as technical and business training, operation manuals, marketing help plus accounting and administration services. In return you agree to run the business according to the franchisor's methods and standards.

According to startups.co.uk, there are 718 franchises in the UK from all walks of life. You’ve got interior designers, estate agents, vending machines and recruitment consultancies. This has become the safest way of starting your own business and bears a staggering 90 per cent success rate. This method is a win-win situation but hence like anything it comes with a few perils such as numerous financial costs. Franchisors will charge new franchisees a lump sum to start up a business using their brand name. Although this can be under £1,000, the amount varies greatly according to the franchisor. Many will insist that you purchase most of the materials you need from your own pocket, and some will demand that you have a certain amount of working capital before you are even considered to be a suitable candidate. There are also royalty fees where the franchisor receives a regular slice of your takings. On top of that you will have to budget for the cost to renew your time to trade under the company name.

Finances aside, there are other factors that can affect you such as having limited control over the business. It may be your baby but at the end of the day the franchiser calls the shots. Another crucial point is that you are vulnerable to other people’s decision and you could lose out if the franchiser makes a bad decision or if another franchise does something to ruin the name of the company.

Despite the cons the advantages of owning your own franchise are immense. Ask Rohan Palmer, who manages Favorite Fried Chicken on South Lambeth Road in South London. “It’s easier to set up a franchise because it is an established brand,” says Mr Palmer. “All the work has been done so it’s just a matter of finding the right site to trade from.” Palmer aka Mr P is a seasoned pro in the fast food business, having been with the company for 25 years. The company which was previously known as Kentucky Fried Chicken became a Favorite Fried Chicken establishment back in 1994.

Mr P informs me that chicken shops are popular franchises because McDonalds is a very different chain to break into because of the volume of equipment needed. “With a chicken takeaway the premises do not have to be particularly large and you can purchase second hand equipment so the overheads are lower,” he tells me. For someone setting up a Favorite Fried Chicken eatery they would be looking to shell out around £100,000.

As most property gurus will tell you location, location is vital for any new business. Over the last few years South Lambeth Road has become a thriving place to be. Dubbed Little Lisbon, residents have taken delight in witnessing numerous cafes and restaurants opening up. “It’s great when the football is on,” says Mr P. “Everyone goes into the bars to celebrate and we get the overspill.” Not a bad way to make a pretty penny then. Over the years, Mr P has been fortunate in finding reliable and hardworking staff, which has resulted in his store having a very low staff turnover. “Most of my staff stay until they retire or go off to start a family’” he says proudly.

The ethos of Favorite Fried Chicken takeaways is that they should be on a busy road and the main plan was to put a branch on each high street. With 106 stores it looks like Favorite Fried Chicken are close to realising their dreams.

Favorite Fried Chicken

Contact
01255 222568

Established
1986

How many franchises?
106

Vacancies
None as per se but business are welcome to apply anytime

Ideal partners
Very flexible but partners should have business experience and acumen

Starting up costs?
£100,000 to £120,000

Franchise fee
£7,500

Royalty fee
4 per cent of total net sales, which is paid monthly

Services and support
Two weeks training. Help with selection of site, design and development. Marketing, advertising, IT, accounting and training.

TO REQUEST MORE INFORMATION ABOUT FRANCHISE WITH FAVORITE FRIED CHICKEN OR ANY OTHER FRANCHISE ,

SIMPLY COMPLETE THE EXPRESS FEED BACK FORM PROVIDED BELOW THIS INFORMATION IS REQUIRED TO PROCESS YOUR REQUEST

DRAGON's DEN PANELIST OUSTED FOR BEING THE 'WRONG COLOUR'

Sat, 19 May 2007 10:17:23 GMT

The BBC has axed businessman Richard Farleigh from hit show Dragon's Den, amid claims he was dumped because of the corporation's politically correct desire to have an ethnic minority entrepreneur among the panellists.

Farleigh, who is the second most generous Dragon's Den investor on the show, which hands out cash to members of the public with innovative business ideas, claimed he was 'bemused' by the BBC's decision, admitting it was wrong if he had been dumped because of his colour.

Richard Farleigh is being bumped from Dragon's Den due to what insiders have labelled 'politically correct' maneuverings

Insiders claimed PC-obsessed programming chiefs at the corporation had removed him so they can introduce a new panelist that was not white.

Farleigh, who admitted he was aware of talk that he had been shunted aside for politically correct reasons, said: "It would be disappointing if that was the reason - rather than anything fundamental - if it was because I was the wrong colour.

"I don't know why this has happened and I am very disappointed and bemused - I wasn't expecting it because all the feedback I got was very positive."

He added: "I had even moved back to the UK to focus on commitments for the show. I am gutted that I have not been invited back."

Farleigh, who was told of the decision 10 days ago, said BBC bosses told him they felt he was not 'into the TV world' enough and was also given the reason for his withdrawal because he did not live in the UK.

Over two series he has invested around £130,000 of his own money. His spokesman claimed Farleigh, who joined the panel in 2006, along with leisure business woman Deborah Meaden, was the country's leading investor in small start-up businesses.

A spokesman for the BBC claimed the new dragon would be chosen purely on the basis of their 'business credentials' and said no contracts had been signed for the new person.

He said it was perfectly normal for the programme to change the make of the Dragon's Den team on the show which is presented by BBC economics correspondent Evan Davies.

The BBC also claimed Farleigh would remain part of the Dragon's Den 'extended family' and would appear in related shows.

Other dragons on the show include Peter Jones, who runs a telecoms and leisure empire, retailer Theo Paphitis and leisure industry tycoon Duncan Bannatyne.

JAMES IS A REAL LIVEWIRE

Sat, 19 May 2007 10:16:28 GMT

A CREWE businessman has been named Young Entrepreneur of the Year by the North West regions Shell Livewire awards.

James Halliburton, aged 26, will now compete in the national final in London against the country's top businessmen for a top prize of £10,000.

His business Seatreiver International Ltd won him the £3,000 first prize at the North of England gala final held in Manchester.

advertisementThe competition is designed to recognise and celebrate the achievements of the UK's finest young entrepreneurs.

James outshone other young entrepreneurs from the North West region with his company, which manufacturers and distributes the unique Water-Buoy - the world's first and only flotation device that is visible at night.

The device will inflate and lift any item weighing up to 1kg back to the water surface saving such items as keys, GPS units and fishing tackle.

James said: "Winning this award is a great boost for my business and will hopefully help it to grow even further.

"The prize money will be invested directly into the business to support the important efforts to raise the business' profile internationally."

BoS CONTEST TO BACK ENTREPRENEURS

Sat, 19 May 2007 10:15:23 GMT

BANK of Scotland's corporate lending arm, led by chief executive Peter Cummings, last night launched a £25 million interest-free funding initiative to benefit UK entrepreneurs.

Called the BoS Corporate £25m Entrepreneur Challenge, five regional winners will get a loan of up to £5m each free of interest and arrangement fees for a period of three years to develop their businesses.

Cummings, chief executive of Bank of Scotland Corporate, who launched the contest at an event at Quaglinos restaurant in London's Piccadilly last night, said it showed the bank's commitment to "backing a new generation of entrepreneurs".

Applicants for the loans will be existing established companies with a turnover of at least £2m a year and at least two years' sustained growth in sales, revenue or profit.

The applicants must be based in the UK and operating in a substantial UK or global market.

Applicants will enter the Entrepreneur Challenge in five regions across the UK - Scotland and Northern Ireland; London; Midlands and mid-Wales; north of England and north Wales; south of England and south Wales.

Each regional finalist will present their business expansion idea to the judging panel, which will include Bank of Scotland Corporate and some leading UK entrepreneurs.

The five regional winners will go forward to a national UK final to be held on 12 December.

The application period runs until 15 August.