Franchise Focus Business News…

A new franchise self-regulatory body has just been launched. The Approved Franchise Association, brainchild of Craig Brittain, will be operating to improve self regulation of the franchise industry in the UK.

Craig told Franchise Direct “The BFA have rarely seen any real competition, and witnessing the rapid growth of the AFA, and the way it is being received by the Franchise Community, will no doubt be causing them to ask questions of themselves about their offer, and considering it’s true financial value and worth in a free market place.“

The AFA will be entering into direct opposition with the British Franchise Association, who have been operating since 1977.

With bfa membership fees starting at nearly £2,000 annually  the AFA is expected to provide a cheaper alternative to regulation of the industry.

He said: “I am delighted to be part of this new and exciting organisation. The franchise industry has grown significantly over recent years and the introduction of this new association can only be of benefit to this very vibrant sector of the economy.

“We aim to make a difference. Our values and principles ensure our organisation remains focused and driven by our collective objectives, surrounding the growth, development and awareness of the Franchise Industry within the United Kingdom.”

He continued “competition, although not always welcomed by all, brings along with it choice.  The choice here is for Franchisors to freely decide for themselves what each association offers, and which is for right for them.

“We pride ourselves on our organisations’ modern style.  Form filling is electronic; communications are quick and effective; and we will never overcomplicate any issue. “

Richard Cobb and Anna Baker from the Business Group at Michelmores provided legal advice to AFA. Richard Cobb said: “It is estimated that there are over 1,000 franchises in the UK and the number is set to increase as this is a tried and tested way of growing a business or setting out in business for the first time.

“Achieving the right relationship between franchisor and franchisee is critical and the AFA’s guiding principles offer the sector a viable alternative association and accreditation system to address the issues involved in a highly professional manner.”

The Subway Franchise aims to target 600 new stores in Britain and Ireland by 2015, creating about 6,000 new jobs.

There are currently 1,423 Subway stores in Britain, nearly a fivefold increase on the 2004 level, and 99 in Ireland.

“We find that no matter what country we’re in, if we hit the right economic notes and appeal to the mass market, we’re able to build the business very, very rapidly,” Subway’s president and founder Fred DeLuca told Reuters in an interview.

As well as traditional high street store development, the firm sees huge potential for non-traditional settings such as stations, convenience stores, hospitals, airports and petrol stations, mirroring a strategy being pursued by British baker Greggs, which currently trades from about 1,550 stores.

DeLuca said sales at British Subway stores open over a year were up 10 percent over the last 13 weeks.

Globally Subway has over 36,000 outlets in 98 countries from Afghanistan to Zambia. All stores are independently owned and operated by franchisees.

DeLuca dismissed the suggestion there was a danger the firm could reach overcapacity in Britain.

“Everybody eats three times a day; it’s only a question of where they choose to eat. The longer-term trends are people eat out more often,” he said.

“When we get to 2,000 stores, we’ll have about one store for every 30,000 people (in the UK). That’s actually quite low density for us. In the U.S. and Canada we have one store for every 12,000 people”

Will you be one of the 600 new stores in the UK and Ireland?

You can view Subway’s franchise opportunity.

When business owners are busy trying to keep customers happy and grow their sales, it can be difficult to keep their eyes open for the best deals in the market, and keep their costs low.
KPMG International commissioned the Economist Intelligence Unit (EIU) to write ‘Rethinking Cost Structures: Creating a sustainable cost advantage’ and found:

• Just eight percent of businesses reach or exceed their targets for cost-saving initiatives
• One of the single biggest barriers to achieving these targets is the lack of adequate processes to drive cost reduction
• Getting people to assume personal responsibility for cost management is always difficult

Cost management businesses make their profit off the savings they find for you, costing you nothing. With so many companies providing the services you need to make your business run, electricity, internet, telephone etc, it can be hard to constantly find the best deal.

If you’re interested in building a business for youself in this industry consider a franchise business, for the added support.

Auditel £36,000

Pink Connect £ 24,950

BCR Associates £29,950

Expense Reduction Analysts £39,900

Business Cost Management £24,950

Business Doctors £19,950

Despite being faced with some challenges, the franchise sector has had cause for celebration on numerous occasions in the past year. Of these milestones, we’ve compiled a sample of them to illustrate the opportunity for success that is out there as we enter 2012, and continue climbing out of the current economic malaise.

Revive! has helped out on the music video for Charlie Simpson’s new single ‘Cemetery’. They are the country’s leading specialist in removing scuffs and scrapes, and they helped touch up the cars in the shoot.

The estimated value (in billions of pounds) of the UK franchise industry.

Number of years that Caremark home care staff member Patricia Hemper has been working in the home care industry.

Percentage of franchise units, including new businesses, that are profitable in the UK.

Number of schools across England, Wales and Scotland who sent entries in to Recognition Express annual Schools Road Safety competition. Recognition Express is the leading European franchise in promotional products, branded gifts and school uniforms.

The number of franchise systems in the UK in 2011.

Approximate current client base in the UK for Auditel, the largest cost and purchase management franchise.

The minimum investment of starting a 247 professional health franchise, a leader in the growing home care sector.

The number of franchise outlets in the UK.

The estimated number of people employed in franchising in the UK

The amount in Pounds that BCR Associates, cost reduction specialists, have saved their clients in 2011. Their hard work has meant that business have made large cost reductions and become more economical as a result.

With more people living longer, and pension incomes falling, the home care sector is an area that will see considerable growth in 2012 and coming years.

By 2030, over 15 million of the UK’s population will be over 65’s.

The home care industry will continue to grow for two categories of pensioners and retirees.

The Newly Retired

Over 65’s experience better health and quality of life today, than ever before. Many people who will retire at 65 are very active and healthy, and take on part-time work to boost their income.

Within the home care industry, there are opportunities for these Newly Retired to work as a home carer, calling to the houses of the sick and elderly for a few hours every week. Calling in on the elderly can involve preparing meals, helping with light cleaning and assisting with hygiene. This allows Newly Retired people an extra income in a flexible and fulfilling environment.

A survey conducted by Prudential Insurance entitled ‘Class of 2012′ has discovered that the income retirees of 2012 can expect has fallen by £3,100 since 2008 to a paltry £15,500 per year. One fifth of these people will live on £10,000 or less.

At the same time, pensioner expenditure has increased, leaving a “perfect storm” brewing for retirees, according to Vince Smith Hughes, the Prudential Retirement Income Expert.

“The impact of the credit crunch, banking crisis, recession and concerns over the eurozone, has been reflected in the fact that expected retirement income levels have hit a five year low”, he said.

The opportunity to work in the home care industry may be a possible incentive for those who want to continue some part-time work upon retirement. Over 65’s don’t have to pay tax or national insurance, and can keep all income along with their pension. If their state pension is under a comfortable level, they can defer their pension and pay ‘Top Up’ national insurance which will increase their pension when they decide to take it.

This year alone there are 22% more retirees than in 2011.

The Golden Aged

The average life expectancy of British women is 82.6 years and 78.4 years for men. For those who are a almost a generation older than the Newly Retired  (although unfortunately illness can strike at an age) care in the home is an option preferred to residential care homes, both personally and by families.

Emotionally, the bonds and ties the elderly have to their home and way of life have immense pull. The average cost of a single room in a residential care facility is £24,292 and in times of such economic hardship, many families cannot afford to pay for residential care for elderly relatives, even if they come to make this heart wrenching decision.

Care at home allows the elderly to retain some independence in the comfort of their own homes.

The home care industry offers a solution to concerns raised over Britain having and elderly population. For many Newly Retired, the realisation that they may not be able to give up work can be hard to face, but helping their older counterparts and working in their homes can provide a gentle transition and opportunity to keep earning.

If you are approaching retirement,and would like to operate your own home care business, we have a selection of home care franchise businesses, which can offer the guidance and support of an established and profitable business model and staff.

If you would like to start your own business, and want to invest in this growing industry, one that will continue growing within your own lifetime, a franchise can be the right model to get your business up and running.

Caremark Minimum Investment : £29,500

Everycare Minimum Investment : £30,000

Bluebird Care Minimum Investment £32,500

Surecare Minimum Investment £25,000

Abacus Care Minimum Investment £22,000

247 Professional Health Minimum Investment £15,000