Franchisor News - Autumn 08

New consumer law affects franchisors and franchisees

Franchisors in the retail and leisure fields will need to understand and help their franchisees comply with The Consumer Protection From Unfair Trading Regulations 2008 or they could face prosecution.

These new Regulations, which came into effect on 26 May 2008, create a number of new criminal offences, which can be committed by both franchisors and franchisees. The penalties awaiting offenders include unlimited fines and imprisonment for up to two years. Directors of companies can be prosecuted personally if their actions or omissions contribute to the offence.

Five acts of unfair behaviour that have been prohibited include, behaviour below that which might be regarded as a generally acceptable standard when dealing with consumers in the trader’s field and not acting in good faith; misleading consumers by communicating false information or lack of relevant information; harassment, coercion or the use of undue influence as well as 31 specific forms of behaviour listed in the regulations.

Geoffrey Sturgess, Partner in Blake Lapthorn Tarlo Lyons and head of its franchising unit, said: “Franchisors also have a personal stake in ensuring that their systems and manuals are up to date as failure to do so could result in them being prosecuted rather than the franchisees - Reg.16 allows the prosecution of those who have not committed the offence themselves, but are responsible for the committing of the offence by others. A franchise system that involves prohibited activities by franchisees could land the franchisor and its directors or managers in the dock.”

A full list of the prohibited practices and a helpful guide to the Regulations can be obtained from the OFT on ww.oft.gov.uk/shared_oft/business_leaflets/530162/oft931int.pdf.

Domino’s Pizza delivers strong results

Domino’s Pizza, one of the world’s most successful franchise businesses,  announced positive interim results and is on track to open its target 50 new stores this year.

During the period, Domino's opened 25 new stores (2007: 20 stores) and closed none. This resulted in a total of 526 stores at the period end (2007: 470 stores)

In addition to new openings, 51 stores changed hands in the first half for a total consideration of £17.9 million. This consolidation of the franchise community is part of Domino’s plan to bring the ownership of stores to an average level of five stores per franchisee.  

Chris Moore, Chief Executive said of its franchisees: “It is their commitment to deliver the best product and service every day that sets the pace in each local market.  Their entrepreneurial drive and passion to succeed gives Domino’s a competitive edge that is hard to beat in good times and even harder when the going gets tough.”

Further growth despite fears of an economic recession

The Garage Conversion Company is experiencing a continuing rise in enquiries for garage conversions and is now looking to grow their franchise network so that they can fulfil the ever increasing demand UK-wide.

With the number of people moving house at an all-time low, according to the Royal Institution of Chartered Surveyors, it seems for The Garage Conversion, people are now seeking an alternative to improve on space, with garage conversions becoming increasingly popular.

Phil Bateman, Managing Director of The Garage Conversion Company explains: “Many people just can’t afford to move house but need extra space. By converting their garage, they gain a room that they can use for a whole range of purposes and add value to their property.”

Discover how to lead with passion and create energy for success!

Craig Goldblatt delivers seminar sessions to teams across the UK and Europe and will be speaking at this year’s National Franchise Exhibition to inspire you and your team to sell with passion and achieve success!

Taking place at the exhibitor presentation theatre at 9.30am on both days of the exhibition, motivational speaker Craig Goldblatt will reveal how to lead with passion on Friday 3 October and create energy for success on Saturday 4 October.

This is a free seminar for all exhibitors.

Entrepreneurs bite back at the credit crunch

Entrepreneurial spirit can challenge the downturn, suggest results of Hiscox ‘DNA of an Entrepreneur’ international study.

Despite the economic downturn and ‘credit crunch’, more than half (52 per cent) of small business owners in the UK say they have no intention of limiting their expansion plans, a survey conducted for specialist insurer Hiscox reveals today.
 
Hiscox’s DNA of an Entrepreneur study, which researched the views, attitudes and lifestyles of entrepreneurs from across five nations, found that the entrepreneurial spirit is alive and well in the UK. The majority of small business owners in professional services sectors in France, Germany and the Netherlands also state they have no plans to limit growth or avoid employing new staff, despite the prevailing economic climate.  In the US, businesses are even more bullish, with 69 per cent stating they will continue to grow their business.

Commenting on the findings, Steve Langan, UK Managing Director at Hiscox, said: “We know small businesses can be fleet-of-foot and highly adaptable in a downturn and it’s good to see that the British entrepreneurial spirit is still strong, despite the credit crunch. At a time when big businesses are announcing profit warnings, refinancing and job losses, small business owners in the UK, Europe and the US are bucking the trend.  They seem determined to keep growing their business”.

Royal connection for Signs Express (Dundee)

Signs Express (Dundee) has recreated a portrait of the Queen Mother (then Duchess of York), which went missing from an Angus Council collection in 1975.

The portrait was painted by Australian artist James Peter Quinn in 1931 and was purchased by the Misses Macdonald of London and Windmill House in Arbroath who donated it to the Arbroath Library in 1934. It remained in the library until the outbreak of the second world war when it was removed to Hospitalfield House for safekeeping. There it stayed until 1975, but while the frame survived, the painting had disappeared.

The portrait, which has been digitally printed on art canvas using the centre’s wide format printer, was taken from an old black and white photograph of the original. The photograph was then digitally enhanced and colourised by the Signs Express (Dundee) team to restore its original beauty and painting style from the early 1930s.

Signs Express (Dundee) centre owner Jim Bain said: “We recently invested in a wide format digital printer which has made it possible to reproduce such high quality imagery from photography. It’s a great sense of achievement to be in a position to help create a little piece of history. I had seen in the press that there was a local search for the portrait and now that the original frame has been found and used to frame the print, I hope that someone will come forward with news of its whereabouts.”

Despite considerable amounts of publicity, the painting, valued at an excess of £25,000, remains elusive. There is currently a £1000 reward out for the return of the original. So get searching those attics!

Health and safety reforms set to save small business £300 million

Small business could save up to £300 million a year with better advice and support on health and safety.

A report published in August by the Better Regulation Executive examines how health and safety regulation affects low risk and small businesses. It sets out recommendations to save firms time and money, while improving working environments and general understanding of health and safety.

The report’s recommendations include:

•    Improved web-based and telephone support, offering advice as well as information, for low risk businesses
•    Better advice to help small businesses know when to buy-in the help of consultants for health and safety advice
•    Maximising the resources of HSE and local authority inspectors, making inspection and enforcement more efficient, focusing on higher risk workplaces
•    Developing a new, single assurance scheme so small businesses can have just one process to deal with a range of requirements, including health and safety, fire and food safety regulations
•    Improving the perception and understanding of health and safety issues.

The average company spends around 20 hours a year, or more than £350, on administration to meet health and safety requirements. Cutting the time spent by just five hours per company would save low risk businesses £150 million a year.

Secretary of State for Business, John Hutton, said: “Introducing simple steps, such as making information more easily available and getting better advice to firms that need it will help save time and money for UK business. Cutting the amount of paperwork for low risk businesses, and making complex regulations easier to understand, will also help create safer environments for workers and the public.”

A fresh-faced franchise website for Ireland

So far this year, websites have been a key focus for Venture Marketing Group. As part of the website strategy for growth and improvement, www.franinfo.ie, the official website for the Irish Franchise exhibitions, is to be re-launched from 15 August 2008 with a fresh design and modernised brand, as well as new functions.

The site will contain more in-depth franchise information, a detailed directory search function of Irish franchises for sale, as well as continuing to be the official website for the Irish franchise exhibitions.

Visitors and advertisers alike will benefit from the more comprehensive content and increased Irish-focussed news and updates.

The site redesign comes in response to developments in the market, and demonstrates Venture Marketing Group’s commitment to continually update and improve our products to ensure that they consistently deliver optimum benefit.

Date announced for 2009 Franchise Marketing Awards

Now in their fourth successful year, the 2009 Franchise Marketing Awards will be held on 23 March in Central London. The Awards highlight and recognise the best marketing campaigns and initiatives for products, services and franchisee recruitment, and are announced at a prestigious dinner on the first night of The British & International Franchise Exhibition, London.

Categories will include Best Website, Best Franchisee Marketing Support, Best Advert, and Franchise Recruitment Team of the Year, amongst many others.

The deadline for all entries is Friday 13 February 2009.

The Awards are sponsored by the Daily Mail and supported by the bfa and Business Franchise magazine. For more information on previous years’ categories and winners, visit www.franchiseinfo.co.uk/awards or call Amber Spencer on +44 (0)20 8394 5287.