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The benefits of a management franchise… from those in the know!

The benefits of a management franchise… from those in the know!

Franchisees, franchisors and suppliers from across three different sectors share the benefits of investing in a management model franchise and the specialist guidance your franchisor will be able to provide

When researching franchise opportunities, there are a number of important decisions that come into play. How involved do I want to be in the operations of my franchise? Is this a long-term investment or a short-term opportunity to boost earnings? And do I want to go into something new, or utilise career experience?

Whatever your motivation, one of the first decisions you will need to make on your franchising journey is whether to opt for an owner-operator franchise or a management model. To help you make an informed decision, franchisees, franchisors and suppliers from across three different sectors share the benefits of investing in a management model franchise and the specialist guidance your franchisor will be able to provide.

The right people in the right places
Justin Nihiser, CEO of kids coding franchise Code Ninjas explains why, when running a management franchise, getting the right team in place is paramount - and how your franchisor can offer guidance with sourcing the right talent for the job.

He explains: “When it comes to a management franchise, experience in the specific industry you are choosing to invest in isn’t necessarily a prerequisite for success. The backbone of what you will be doing is managing other people, so the experience that a franchisor will look on favourably will be previous, notable leadership. Recruiting the right team of people to deliver your service or sell your product is crucial. That’s where your franchisor comes in.

“Although the decision will ultimately be down to you, any quality franchisor will offer insight and guidance on how to recognise talent at the interview stage. It’s also imperative that you feel comfortable with the interview process in its entirety; this is also something your franchisor can help with. Utilise their experience in successful recruitment - after all, they approved your application - and call on them for advice where it’s needed.

“Your franchisor knows what it takes to make a location successful and positions required to make it happen. They’ll be able to recognise key individuals within your new team who will support you as you take your business to new heights. Your franchisor will also be able to recognise trends and monitor your progress in your franchise business.”

Take stock of the bigger picture
Married couple, Heather and Cris Salvador run 23 Stagecoach Performing Arts schools across 11 territories. Over the last 16 years, the entrepreneurially minded couple have invested in, grown and sold more than five territories. Their latest investment, in the Chichester territory, completed in January. They wholeheartedly champion the brand’s management model to maintain profitability.

“Whilst some business owners might be dubious about expanding, I feel as though the timing has never been better,” says Heather. “Our new territory is over 250 miles away from home, but with the support of a new manager, we’re able to run the business remotely. We first brought in managers to operate our schools around four years ago and since then we have added two full-time administrative members of staff. Beforehand, we constantly found ourselves micro-managing, dashing around, trying to be everywhere at once. Now we know that the more time we have away from the business, the more help and expertise we can offer our staff, and the easier it gets.”

Cris continues: “Investing in new territories during a global pandemic may sound crazy to some, but for us, it just made financial sense. With no overheads spent on renting locations, we’re able to keep our costs low and maintain the business as it was before the lockdown. Of course, we can’t wait to get back to our in-person classes but running our franchise over the last 12 months has just solidified what I knew about the Stagecoach management model – as long as you follow the advice, make use of the resources and work hard, it’s recession-proof.”

A sustainable future
Betterclean Services’ Director, Dan van Kuyk, believes that the control to grow an asset for your future is strong with a management franchise and that they can provide the opportunity for sustained growth even in challenging times. Betterclean Services franchise owners are able to build a scalable and sustainable business within the booming sector of commercial cleaning.

“A management franchise provides you with the control to grow a valuable asset for your future through sustainable growth over time. You are the one managing your team, building relationships with your clients and coordinating the delivery of an excellent service in order to build a great reputation. However, growth isn’t dependent on only your time available in the business because you have a team behind you, so it’s a win-win situation.

“Another great benefit to running a management franchise is that you have more time to work on the business rather than in the business as single owner-operators must do. You are also able to sell your business on relatively easily as your team can stay in place while you exit, or you can choose to bring in more management roles while you step back to spend more time with your family or enjoy other business opportunities. A management franchise really does enable you to enjoy a real work-life balance,” explains Dan.

Ask the right questions
Dugan Aylen, head of franchisee recruitment and one of the owners at The Franchising Centre, has nearly two decades of franchising experience. Here are his top tips to identify the right management franchise for you.

Manage your expectations and do your research - you might just find the business of your dreams. Before you take the plunge in 2021, why not ask these questions to find your perfect management franchise match?

1. What kind of people will you want on your team? Are you ready to lead and should you consider some professional leadership development? For example, if you’re used to managing blue-collar workers, will you need to change your style to manage white-collar employees?

2. What management tools are provided by the franchisor? Will the software or systems and processes that have been established by the franchisor make your life easier and help your business thrive?

3. What business development support does the franchisor provide or make available to you? Will you take the lead on business development or hire someone?
4. What are the financial management tools provided to you? These tools are essential to running your business, so making sure you can use them effectively is key.

Whether you have dreams of building a scalable and sustainable business, you’re passionate about nurturing the talent of others or looking to benefit from the expertise of specialists in your chosen field, chances are that a management model franchise could be the perfect fit for you.

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