Top tips for franchisors and franchisees

Taking that step to expanding your business is a big decision. Franchising is one option that is ideal for hairdressing. The Franchise Group, which helps businesses franchise and individuals set up on their own say that franchising is a great way for business owners to expand their company’s brand across the UK without having to worry about managing all the salons or units single-handedly. However, like any business decision, choosing to take on a franchise or become a franchisor is not something you should do without some serious consideration. A host of successful hairdressers give their advice on the key points all franchisors and franchisees should consider before making a commitment.Phil Smith, Toni & Guy, Salisbury, Wiltshire

• Investigate the business as much as possible. You need an excellent knowledge of the area and the people.
• Do your research on banks that have a trading history of hairdressing salons and that are familiar with and appreciate your business.
• Get team members who are from the local area. They will have detailed knowledge of the area and people’s attitudes.
• You must have a real hunger to be a franchisee. Don’t accept any opportunities if your heart isn’t in it.
• If you are thinking of moving into the overseas market you have to undertake an extremely detailed investigation of the location and market, more so than you may do if you were planning on opening within the UK. You have also got to be prepared to travel.

Robert Smith, director, Haringtons

• Look for a salon group with the same ethics and values as you and make sure that you sign up people that you respect and can work with.
• Choose a company that you feel proud to be a part of, as you will be partly responsible for the ongoing development of the brand. You should feel passionate about flying their flag.

Lisa Shepherd, Lisa Shepherd Midlands

• To make a success of franchising you need a strong support system, this includes being able to supply the necessary support to a prospective franchisee to develop their business, where to purchase the equipment, who to get to fit out work, accountants, employment law, existing documentation, training and development.
• There are so many things that can go wrong when you’re involved with leases and contracts, it is essential to have an experienced company design your franchise agreement and accompanying documentation. This is the strong base on which to build your franchise plans.

Richard Bland, general manager, Saks Hair & Beauty

• Don’t take franchising lightly.
• Building a brand doesn’t happen overnight. You must build a reputation that other people will want to buy into.
• Research your competitors. Your business should have its own distinctive image to set it apart.
• To franchise your business, there should be a steady and growing demand for your service.
• You will need to offer franchisees a business format that includes your brand, business system, and support services under the contractual terms of a franchise agreement.
• It will also be your responsibility, and your obligation to franchisees paying for the benefit of using your brand, to protect it against abuse, both by outsiders and by ex-franchisees. You will therefore need specialised advice on protecting your trade and service marks.
• A comprehensive operations manual is essential. It must detail what a franchisee does, how to do it, and to what standards. You will also need to develop and prove an initial and continuing training programme.
• You need to invest in developing and marketing the franchise so don’t expect huge profits expecially in the short term.

Clive Collins, director, hob salons, London

• Franchisors should ensure they have an appropriate franchise agreement in place tailored to their specific business requirements.
• Make sure you have a good computer package to monitor and assess the performance of your salon and franchise salons.
• Consistently educate and re-educate your staff to maintain brand identity and a high level of client care and customer service.
• Opening your own salon requires a great deal of business knowledge so do your research and have enough business experience prior to taking this step.
• Always think about the area and location of your franchise salon. Having a strong position and high-street presence is essential in building clients and your business. Try to position yourself near blue chip companies such as M&S and Boots to ensure optimum trade.
• Make sure you are happy with the franchisor before opening your franchise.

Andy Phouli, Rush London

• The whole journey doesn’t work unless it works for the franchisee. They are key and they need to get all the support you can offer to make sure their business expands in the right way.
• The franchise foundation must be very strong. It is hard to start a new business if you are on your own but with the support of the company it should be easier.
• Be prepared for the hard work ahead. You need to be business orientated as well as creative to make a franchise work.
• Education on the creative and business side is key. If you follow the brand values of the company – ours are quality, passion, creativity and professionalism – you can’t go far wrong.