Franchise Focus Business News…

Forbes recently published a list of the top 10 counties in which to do business, and with the recent publication on our sister site of the Top 100 Global Franchises, I thought it would be a good time to explore the world of US franchises in the UK.

Many US franchises use the UK as their gateway to Europe, and the reasons for this are fairly obvious. Both countries speak English as their mother tongue, albeit with some differences – tomato/tomato anyone?! The UK also has one of the largest and most advanced populations in Europe, at 60.9 million the UK population is only a fraction of the impressive 303.8 million people accounted for by the US, yet in certain industries such as media and retail, the UK can sometimes be seen as an add on economy to the US. Think about the UK media and the large role US brands currently play, as well as music, clothing, food and increasingly – cars. The introduction of a US franchise brand into the UK is not always without hiccups as many cultural and economic differences remain, however if the franchisor has considered these differences and implemented any necessary changes to make the concept more suited to the UK market, then there is no reason why their franchise opportunity should not be considered further.

The Top 100 Global Franchises detailed how the US accounts for the largest number of international franchise brands which includes household names such as McDonald’s, Domino’s Pizza, UPS Store, 7 Eleven, Pizza Hut, Subway and Ben and Jerry’s to name but a few. The UK accounts for only one – Intercontinental Hotels. The UK franchise industry has been infiltrated by a large number of US brands, yet it still has to make its mark on the international franchising field.

The UK ranked no. 6 in Forbes’ list of top countries for business, while Denmark took the top spot for the second year in a row and the US followed in second place. The list was compiled as a guide for entrepreneurs looking to expand their business overseas. Each country is ranked based not just on GDP or low unemployment, but on other influencing factors such as personal freedom, stock market performance, intellectual property rights and corporate transparency. As one of the four English speaking countries in the top 10, and with the biggest population after the US, it is easy to see why the US remains a huge target market for US franchises going global.

The infographic below details the various factors considered when Forbes ranked each country. Also, for those of you looking to find out more about US franchises take the time to explore our directory of US franchise opportunities available in the UK.

Top 10 Countries to do Business in

The British Franchise Association (bfa) last Friday, announced the finalists for this year’s franchise awards. In their 21st year, the awards celebrate franchising across Britain and in particular, highlight individuals which the bfa believe have contributed substantially to the franchise industry over the last year.

2009 was a particularly tough year for the UK economy as it struggled to regain its foothold amidst the great recession, so the awards should be interesting in terms of who the bfa have been the “saviours” of the franchise industry during its toughest times.

Split into three categories, the finalists are:

Franchisor of the Year Award

• Auditel
• Autosmart
• Bluebird Care
• Domino’s Pizza
• Driver Hire
• McDonald’s
• TaxAssist Accountants
• Wiltshire Farm Foods

HSBC Franchisee Support Award

• Countrywide Grounds Maintenance
• Monkey Music
• Revive!
• X-Press Legal Services

Express Newspapers Brand Builder

• Cook
• LighterLife
• Smallprint

The finalists are a good mix of both international brands (McDonald’s and Domino’s Pizza) and homegrown British franchises (Auditel, TaxAssist Accountants and Bluebird Care), as well as a wide range of industries from food franchises, to care franchises and right through to white collar franchises in the business and financial sectors. Last year’s winners, Franchisor of the Year – Countrywide Ground Maintenance (gold – first), TaxAssist Accountants (silver – second) and Wiltshire Farm Foods (bronze – third) appear again, marking each franchise as a major player within the British franchise industry.

The winners will be announced on June 2nd at a ceremony in Nottingham and more on the awards can be found on the bfa Franchise Awards site.

Our sister site, Franchise Direct.com has again pooled its extensive knowledge of global franchising to assess the world’s best franchises. We’re delighted to announce the publication of this year’s Top 100 Global Franchises.

According to the second annual list of the Top 100 Global Franchises, international franchising has gotten both more profitable and diverse in the last 12 months.

Here are the Top 10 Global Franchises for this year:

1. McDonalds
2. Subway
3. KFC
4. Burger King
5. 7-Eleven
6. InterContental Hotels
7. Pizza Hut
8. Snap-on Tools
9. Taco Bell
10. Ramada Worldwide

Generally-speaking, food franchises continue to dominate the Franchise Direct top franchise rankings. At a moment of economic difficulty in America, the emergence of new foreign markets, particularly in China and India, has allowed to food franchises to consolidate their business. These franchises are not purely profit-driven and we’ve seen franchises like McDonald’s take great strides in implementing eco-friendly solutions in their stores.

Health franchises are a sector that have enjoyed particularly fast growth, and Snap Fitness, a fitness franchise, and GNC, a franchised health retailer, have cemented their global standing in the past year. It’s also exciting that two franchises owned by women – Merle Norman and Jazzercise – maintain their place in our rankings.

More and more foreign companies are franchising their businesses and two new non-American franchises have joined this year’s Top 100. Canada’s Yogen Früz and Germany’s TeaGschwendner have made the list, bringing the number of non-American franchises in the Top 100 to 15. The UK’s InterContinental Hotels continues to be the top-ranked non-American franchise, coming in sixth place overall.

Economic projections by the likes of the International Franchising Association predict that 2010 will be a more profitable year both domestically and internationally for the world’s top franchise brands. As the so-called ‘global village’ gets smaller and smaller, expect well-known franchises to expand even further into economies all around the world. Franchise Direct will certainly be there monitoring the market to evaluate the best-performing international franchises.

Celia Marrec, our representative for our French sister site – Franchise Directe recently attended the International Franchise Expo in Paris. I spoke with Celia about her experience at the expo and what she feels the atmosphere is like in the French franchise market at present.

Celia said she “got good general feedback from our clients on our website. They are happy with our reactivity and the quality of our website. The franchisors on our site who also attended the expo also received good feedback and made a few contacts with potential franchisees which could lead to new openings in the coming months.”

According to Franchise Expo Paris, there were more than 31,000 visitors for the 2010 French Expo (up 15.5% in comparison to 2009) with 400 companies exhibiting their opportunities. 40% of the visitors were people currently working for a company who have the project of becoming a franchisee (up 66.98% in comparison to 2009). 39% were people who already owned an independent business or who were already franchisees (up 87% in comparison to 2009). 20.4% were people who were unemployed (were working previously for a company) and were looking for a new challenge: becoming franchisee (up 65% in comparison to 2009).

In terms of foreign visitors, a significant number were Moroccan (Morocco was the promoted country chosen by the organizers for the Franchise Expo 2010), followed by Belgian people, Spanish, Italian, British and Canadian. Canada will be the foreign country promoted in 2011.

With the economic climate still unsteady in France, and difficulties still being experienced in securing financing from French banks, the figures above and the feedback Celia received is encouraging for the French franchise industry. Here are a few pics from the Franchise Expo Paris:

Our pampered pets have begun to cost us more and more each year. A recent study by the New York Times estimated that a dog can cost its owners between $11,650 (£7,650) and $13,350 (£8,750) in their lifetime. So why are we spending so much on our pets? The industry is worth £4.3 billion annually to the UK economy, so how is the pet franchise industry benefitting from this spending?

From initial costs to buy a dog to insurance, food, bedding, vet bills and of course the odd treat, our furry friends are becoming more and more like high maintenance every day! But us dog lovers at Franchise Direct definitely believe they’re worth it! In fact, it has been proven that pets can actually help to reduce the stress levels of their “humans” and lead towards a more balanced lifestyle. Elizabeth Scott, a wellness coach specialising in stress management writes that “pets can provide excellent social support, stress relief and other health benefits—perhaps more than people!”Benefits include an increased likelihood to exercise, a happier mood as your best friend always has the ability to cheer you up and lower blood pressure! The UK and Ireland are the biggest sufferers of asthma, however Dr. James Ramsden believes that the common believe that dog and cat hair can irritate asthma is untrue and claims that recent research has found that the opposite is true! Exposure to pet hair from an early age can develop a high tolerance of materials which cause allergies, and can actually reduce the chances of the development of allergies or asthma.

So with all these obvious benefits, it’s not surprising that 43% of the UK population owns either a pet or a dog…or both! These beloved pets are becoming even more pampered with regular trips to a doggy parlour for coat care and nail clipping. Pet insurance is also a budgeted expense for most pet owners and is now seen as a must to ensure the best care for your pet in case of any medical issues. Many pets are put in doggy day care while their owners are in work, and also into pet holiday homes which their owners go on holidays. On top of this, these pets can often be seen as substitutes for children by many single people and can be treated to regular gifts such as toys, edible treats and new collars, leashes etc. Also, within a family unit, the family dog can also be given regular gifts from doting children as Christmas and Birthdays (7 a year remember!!!) become fortuitous occasions for many canines!

The pet franchise industry is all too aware of the prevalence of pet pampering amongst pet owners and has met this demand through the development of many pet franchise models, from pet product retail opportunities from the popular Swedish brand Husse to Dial A Dog Wash’s pet parlour franchise and not forgetting Kirsty’s horse sitting franchise, the franchise industry has supplied a wide range of franchise models to boost the pet service and product industry.