Make a fresh start with redundancy (Daily Mail franchise story)

Make a fresh start with redundancy

Daily Mail franchise story

By: Linda Whitney

MANY franchisors are marketing to the newly redundant — but if that's you, tread and think carefully.

'With a redundancy cheque and the need to find a new source of income quickly, you can be quite vulnerable,' says Catherine Jackson, from Prism Franchise Advisors.

'Typically, the newly redundant underestimate their value to franchisors, and they are not as demanding of the franchisor's claims as they should be.' Research the franchise in depth..

You can do it yourself or Prism will research the company from public and industry sources and provide an overview for £450.

'Ensure the franchisor backs up any claims and demonstrates that the business is as successful as it outlines,' says Mrs Jackson.

Ask for a list of franchisees and ask them yourself whether they are satisfied with the franchise. Don't forget that franchisors need your business know-how and experience.

Keith Davidson, of the £30,000 corporate design and print franchise Prontaprint, says: 'Prontaprint looks for dynamic, enterprising, IT-savvy professionals with great people skills — the kind of skills many people have who have been made redundant.'

Pauline Sargeant, from the Pauline May franchise, which involves selling specially designed clothing to care-home residents, says: 'We are seeing an increase in franchise applications from people who have been made redundant.

A franchise can be a good option, especially for people past their 40s.' The initial cost of £25,000 includes £5,000 worth of stock, full training and a bespoke software package.

'Many of our investors have had life changes, including redundancy,' says Mike Greatwood, of Get Smart Bills, a business opportunity that involves helping companies to save energy costs.

Your business experience will help as you will be selling your service to businesses of all sizes. Call for investment details.

PRISM Franchise Advisors 07525 394821;

Prontaprint 0845 762 6748;

Pauline May 01535 661 362;

Get Smart 0845 604 1484.

...BUT CHECK THE SMALL PRINT

YOUR franchise may be your biggest investment, so check the legal and financial aspects.

Your rights as a franchisee should be set out in the contract and a solicitor can explain what they mean for you.

Many franchise lawyers will check contracts and give an explanation of the implications for a fixed fee, typically from between £400 and £700. Check the finances of any franchise you are considering and ensure you understand the costs involved.

Tom Endean, of the British Franchise Association (BFA), says: 'Make sure that the franchise investment includes the cost of operating capital and stock.' The BFA has a list of accountants and lawyers specialising in franchising at www.thebfa.org.

LAST October Karen O'Toole

LAST October Karen O'Toole was made redundant from construction firm McCarthy & Stone, the retirement property specialist.

Now she and husband Ray (pictured) are franchisees with Pauline May, selling clothing to care home residents.

'I enjoyed hearing the stories of older people, so when I saw an article in the Daily Mail about a Pauline May franchisee last year, I kept it,' says Karen. When she was made redundant, she investigated the franchise.

'We did a lot of research, because we were investing all my redundancy money and our savings,' says Karen. In February, Karen and Ray conducted their first Pauline May clothing party at a residential home.

'We do five parties a week at residential and nursing homes, and are looking to expand,' says Karen, 52.

'My previous experience as a sales and marketing director, and Ray's skills gained from running his own company in the past, suit the business well.' She adds: 'Franchising can be a good way out of redundancy provided you choose a business that suits your skills and research it carefully.'