Irish Franchise Association

FRANCHISE IRELAND

Autumn 2006


(The online newsletter of the Irish Franchise Association, 30 Tolka Valley Business Park, Ballyboggan Road, Dublin 11. T- 01 4991091. Email - michaelbradley@irishfranchiseassociation.com
Chairman - John Green; CEO - Michael Bradley)
www.irishfranchiseassociation.com


MESSAGE FROM JOHN GREEN, CHAIRMAN, IRISH FRANCHISE ASSOCIATION


“Welcome to our third newsletter of 2006. The Irish Franchise Association continues to enhance the profile of franchising as a means of starting or expanding a business through its current activities -

Regional seminars/presentations – we held information seminars in Dublin with Ulster Bank Group and Carlow with Carlow County Enterprise Board in October. Details of our next seminar at Naas, with Naas Chamber and Kildare County Enterprise Board, scheduled for 8 Nov at 7pm, are on our website.
Further presentations planned for early 2007 will be held at Tralee, with Kerry Co Enterprise Board and Tralee Chamber, and Limerick with Limerick City Enterprise Board and details will be posted on our website.
Our regular workshop for existing business owners - “How to Franchise your Business – an introduction”, with Bank of Ireland - will be held on Tuesday 28 November at 10.30am in Dublin and details are on the events section of our website.

Irish Franchise Awards 2006 – now in their third year, the Awards are designed to recognise and reward the outstanding achievements of organisations and individuals in the growth and development of their franchised businesses and their contribution towards this sector on the island of Ireland. The Awards are expected to attract national media attention and to provide good PR opportunities for the winners. There are six categories, viz, Franchise of the Year, Retail and Service: Franchisee of the Year, Retail and Service: Best Emerging Franchise: Franchise Person of the Year.
The awards will be presented at an Awards Dinner on Friday 17 November at the Davenport Hotel, Merrion Square, Dublin 4. Details and booking forms are available from michaelbradley@irishfranchiseassociation.com

Irish Franchise Exhibition 2006 – will be held at the RDS, Ballsbridge, Dublin 4 on 17th and 18th November, and information seminars will be held during both days. See our website, www.irishfranchiseasociation.com, or www.franinfo.ie.

Franchise Survey – the findings of the 2006 survey on franchising in Ireland are expected to be published later this year and are expected to show continued growth in all aspects of the sector.

Irish Franchise Association’s strategic plan 2006 to 2010 – was adopted at a Committee meeting in September. The plan outlines key strategic objectives to improve the Irish Franchise Association’s structure, standards and effectiveness and is being implemented immediately and the first formal AGM will be held in January 07 at which the new Board of Directors will be elected.

Training for franchisors – s planned for November at the National College of Ireland and will be given by Howarth Franchising. Modules will, for example, cover subjects like Marketing a Franchise, Recruiting Franchisees, Motivating and Monitoring Franchisees. All members have been notified. Information from sarah@howarthfranchising.com

To members of the Irish Franchise Association - thank you for your continued support. To other franchisors – why not contact us about the benefits of Irish Franchise Association membership to your business? And to all our readers - thank you for your interest. See www.irishfranchiseasociation.com for further information on all aspects of franchising”.

JOHN GREEN, Chairman
Irish Franchise Association


NEW MEMBERS

We welcome the following to membership of the Irish Franchise Association:

Kendlebell is a Virtual Office service for small businesses.  Using state of the art technology, Kendlebell provide effective personalised telephone answering, online diary management, order-taking, lead generation, non-geographic number provision and a host of other services designed for small companies that don’t wish to hire full-time or temporary staff.  Contact Kendlebell on freephone 1800 848646 or visit our website www.kbell.ie to learn more.

Ultimate Woman – 30 minute fitness - after years of helping people to get fit in America, the Ultimate Woman - 30 minute fitness franchise is now in Ireland!! With years of experience in both franchising and in the health and fitness industry, Ultimate Woman Fitness has the edge on other women-only fitness franchises in the marketplace. Fully qualified staff, longer opening hours and high quality machines set us apart. Franchisees, our ongoing assistance, support and follow-up are second to none! Territories are still available throughout Ireland.Contact Marc Reilly, Ph: 021 4639410/ 087 2250594. W: www.ultimatewoman.ie
E: ultimatewomanireland@gmail.com

The Blitz – 30 minute total fitness for men - after years of success in the America, The Blitz 30 minute fitness, is now in Ireland! Voted the fastest growing men’s fitness franchise in the world, by Entrepreneur 2000, The Blitz is already experiencing great success with Irish men. With years of expertise in both franchising and in the health and fitness industry, The Blitz has the edge on other men’s fitness franchises in the marketplace, with it’s fully qualified staff, longer opening hours and high quality machines. The ongoing assistance, support and follow-up we offer franchisees are second to none! Territories are still available throughout Ireland. Contact Marc Reilly, Ph: 021 4639410/ 087 2250594, W: www.timetoblitz.ie
E: blitzireland@gmail.com

MCV Ireland – is the leading professional car valeting company, dealing with the commercial and private sector. No job or vehicle is too big or too small - trucks, buses, cars, vans or any motorised vehicle, mobile home or caravan – are all cleaned to the highest standard by trained staff. All operators offer freephone numbers for contact, so quotations cost nothing.
MCV also offers franchisee opportunities to persons seeking to achieve a higher standard of living, become their own boss and leave the stress of working for some else behind. MCV intends to be nationwide within a few years and the first valeting company to come to mind when seeking such a service. Contact Eddie Mulrooney, MCV master franchisee Ireland, Phone (+353) 071 9173007/(+353) 086 3893006.
E: eddiemulrooney@mcv.ie
W: www.mcv.ie


News from Commercial Department, US Embassy, Dublin

American franchise concepts are now the dominant source of franchises in Ireland and over the last few years, the U.S. Commercial Service at the U.S. Embassy, Dublin has helped several American franchisors identify master licensees and franchisees for the Irish market. For additional information on the U.S. Commercial Service visit their website at http://www.buyusa.gov/ireland


NEWS and VIEWS


Signs Express - the UK & Ireland’s largest sign company will be exhibiting on stand C20 at the forthcoming franchise show in November, looking for enthusiastic business professionals to join their successful nationwide network. With over 80 centres nationwide, Signs Express is a management franchise opportunity operating within the lucrative B2B marketplace with excellent sales potential from all industries. Operating the tried and tested business formula, Signs Express franchisees are able to generate both personal and financial rewards.
With no previous experience required, the management franchise package includes full training and ongoing support in all areas of the business. Signs Express is a full member of the Irish Franchise Association and the International Sign Association.
For more information, visit stand C20, call Tony Marsh on +44 (0)1603 625925 or log onto www.signsexpress.ie.

Prontaprint - has rolled out its distinctive new brand identity to centres across Ireland this month following a 5million euro investment and almost two years research into the market, brand development and training. Prontaprint’s Irish centres will be the first to be re-positioned out of 170 centres across Ireland and the UK. Prontaprint centres in Ireland are amongst the fastest growing in the network many with a turnover in excess of €1 million with a growth rate in 2005 of 10%. The move is designed to differentiate Prontaprint in the marketplace and re-enforce its position at the forefront of the on-demand business print market in the UK and Ireland, by communicating it’s offering more effectively with an enhanced business image. Prontaprint’s Irish network currently boasts 7 centres in the Republic of Ireland with plans to expand their network to 12 centres before the end of 2008. With the introduction of new products like personalised direct mail literature and improved e-support, the new branding is one of the most significant events in Prontaprint’s 36 year history – it marks a transition to a fully-fledged business provider. See www.prontaprint.com

Computer Troubleshooters Ireland - has opened its 9th Irish office in Wexford under the management of Michael Martin, centrally based in Tullycanna, Ballymitty close to Wexford town. Enda Folan, National Master Franchisor, says “Michael joins our Ireland organisation with offices in Galway, Limerick, Kildare, Clare, Longford/Westmeath and Louth”.
Founded in Australia, Computer Troubleshooters is a unique computer service franchise specialising in helping residential, home office and small businesses with all their callout/onsite computer-related needs: software/hardware troubleshooting, upgrades, repair, consulting, anti-virus/spyware, networking, broadband/internet, website design, made-to-order new & refurbished systems, service/maintenance contracts and training services.
Computer Troubleshooters Ireland plans to open as many as 15 additional offices in the Republic and Northern Ireland over the next 2 years and is seeking potential franchisees in all parts of Ireland. Call Enda Folan, 091-580058, 086-8108118 or email: efolan@comptroub.com.
W:www.comptroub.ie.

Ladies Workout Express - opened their 13th new club recently in Newry. Three of their franchisees have located properties for their 2nd clubs and we feel this is a great endorsement for our franchise. Newry follows our new Club openings in Kilcullen Co Kildare, and in Ballycastle, Co Antrim. In the last 7 months we have opened 7 clubs, and we intend to keep up this roll out rate for the future. The Ladies Gym market in Ireland is a only at franction of its potential, and we intend to drive Ladies Workout Express Franchise to be the premier Gym in the country. See www.ladiesworkoutexpress.com.

whichfranchise.ie - is a free franchise information and advice portal for the Irish franchise market, and has introduced an “Ask the Experts” facility.
Irish potential franchisees are now able to post their most sought after questions to a panel of Irish franchise experts, and they cover questions on legal advice, raising finance, franchising your existing business, franchise opportunities available and other general Irish franchise areas. Between them our experts have considerable franchise experience and knowledge, and cover all aspects of buying a franchise and expanding an existing business via franchising in Ireland.
As well as free comprehensive franchise information and advice, and a directory of franchise opportunities in Ireland, other features include a franchise self-test, Irish case studies and news, franchise events in Ireland, franchising your business, how to finance your franchise and overview of Irish franchise legal issues. To find out more about Franchising in Ireland, visit www.whichfranchise.ie

Agency Express - At any one time there are approximately 1.5 million ‘For Sale’ boards displayed on the streets of the UK, equating to a business worth around £20 million a year. As the only nationwide board servicing company, Agency Express is the clear market leader. Our growing network of over 90 franchisees provides an unparalleled service to estate agencies across the UK and beyond. Agency Express franchisees come from a wide variety of different career backgrounds, but they all have one thing in common – the motivation to succeed in running their own van-based businesses. As an Agency Express franchisee, you don’t need previous experience or business qualifications, as the training fully prepares you for running your own business. An investment of just £14,500 (plus reclaimable VAT) provides a franchisee with a 10-year Licence for his own protected territory. The comprehensive package includes everything needed to get the business up and running, such as specialist equipment, an 8-day training program and the deposit paid on a brand new Renault Master Van. As a van-based business, franchisees benefit from low overheads, which increases their profitability. With new centres opening at a rate of one or two a month, there’s never been a better time to get on board. For information call Claire Lapping on 01603 620044 or visit www.agencyexpress.co.uk.

Kendlebell - is a Virtual Office franchise for small businesses.  Using state of the art technology, Kendlebell provide effective personalised telephone answering and a host of other services.  The franchise is well established in the UK and has recently been brought to Ireland by Tom Shanahan and David Kelly.  Kendlebell Ireland have established their first office in Dublin 3 and intend rolling out a network of franchisees across Ireland. Setup costs for a Kendlebell franchise are lower than average and every Kendlebell franchise in the UK has been profitable within its first year of trading.  If you have a passion for excellent customer service, a reasonable understanding of I.T. and are interested in running your own business, then contact Kendlebell on freephone 1800 848646 or visit the Kendlebell website at www.kbell.ie.

The Ink Drop – now has three franchisees on board and has at least two more in the pipeline. Launched in Ireland in June 2005 with its first retail outlet in Blanchardstown D15, it already has 10 outlets based in the UK. Our aim has always been to give the franchisee a demographic and geographical area, committed to in our contract, to allow them grow their business without any additional franchise fees. We are also introducing over the next 12 months a scaled management fee that will reduce as the franchisees sales increase. To help us raise our profile we have invested in marketing through radio and direct mail marketing for the next 12 months with An Post, Q102, 106.8fm, and an Internet campaign. With our manufacturing plants holding ISO9001 and ISO 14001 accreditation we know that the quality of our product is second to. There is absolutely no on site filling of empties involved in our business and we can truly say we are the alternative to the original. Enquiries to Sandra Redden on 059 8623872 or email info@theinkdrop.ie. Order online at www.theinkdrop.ie

Big Red Book - is an Irish Software Company that specializes in solving the accountancy, payroll and HR challenges of all SMEs. It is used by over fourteen thousand companies in Ireland today and is well known for its simplicity making it the easiest to use accountancy software package on the market. Vat returns can be done at the click of a button and no formal experience in accounting or computer knowledge is necessary. For a free demonstration pack call Catherine on 01 2048345.All Irish Franchise Association members receive a 10% discount on all Big Red Book® software.

Franchise International (FI) is the world's only publication totally dedicated to international master franchising. In circulation since 1993 and now published quarterly, Franchise International is available online or in print, providing a valuable guide to investigating the franchise market, helping you to keep up to date with the latest master franchising news and linking to the most valuable franchise resources. See www.franchise-international.net


LEGAL ISSUES


Renegotiating Franchise Agreements (Bill Holohan, Solicitor, Bill Holohan and Associates, Dublin and Cork. Tel 01 8727120. E: bill@billholohan.ie)

If franchisors are not willing to renegotiate the terms of their standard franchise agreement then what is the point of having it reviewed by the franchise lawyer?
Most franchisors will advise prospective franchisees that any attempt to negotiate the franchise agreement would be a waste of time and that they would not agree. The reason often given by franchisors is that any changes to the franchise agreement will undermine the uniformity of the system. Wide variations in franchise agreements are viewed as a threat to the uniformity, integrity and ultimate viability of the system.

There are certain terms and conditions in a franchise agreement that would be open to some element of negotiation or amendment such as the size of the franchisee’s territory or matters which are affected by site specific / planning considerations, for example. Franchisees however should be cautious in their attempts to negotiate other less important terms and conditions of the agreement and they should be aware of the fact that the franchisor will not be open to negotiating the entire franchise agreement. They should only therefore focus on attempting to address the most problematical provisions or areas where they have significant concerns.

Unfortunately, this is not always understood by lawyers who do not practice in this particular area of law and most lawyers would regard themselves as a hired gun whose job it is to “do the best” for their client, i.e. by redrafting the entire agreement. They misunderstand their role which is to advise the franchisee of the length, depth, shape and implications of the contractual bunker in which they are about to enter.

Franchisors and generally reluctant to make amendments for, among other things, the following reasons:

  • Modifications to the standard documentation could cause administrative difficulties for the franchisor. It would then be required to manage and monitor very different variations on the franchise document. To do this in an effective matter would necessarily involve increasing operating costs.
  • Secondly, allowing variations might create some contention among franchisees when they discover that that franchisor has offered different terms to different franchisees and would open up the franchisor to allegations of favouritism.
  • One of the features of a successful franchise system is it’s uniformity and consistency.

In reality, the franchisors do on occasion negotiate variations. The general rule of “no negotiation” may not in fact apply for example, in relation to a start up scenario where franchisors are more likely to be open to negotiating the franchisee agreement in the interest of selling their first number of franchisees. It may also not apply where the prospect of the franchisee bringing the much needed expertise or capital to the table. Usually however, from the point of view of “marketing” the franchise, these variations are agreed as and incorporated in a “side letter” to the standard document.

Franchise Legislation in Sweden (Peter Orander, E: peter.orander@dlanordic.se)
As the first country in the Nordic region Sweden has enacted a specific disclosure regulation which will enter into force in October 2006. It provides that a franchisor at least fourteen days before the sale of a franchise shall provide the prospective franchisee with relevant information which should cover inter alia a description of the franchise business, other franchisees within the system as well as disclosure of the major terms of the agreement including fees and costs, IP-rights, goods and services which the franchisee is obliged to purchase from the franchisor, non-competition, termination and dispute resolution. Disclosure should be made in writing. There is no requirement to register the disclosure document. A franchisor not complying with the regulation may be ordered by the Swedish Market Court to disclose the required information in the specific case or when negotiating future sales of franchise. The act provides no recourse for the franchisee such as a right to rescind the contract or to claim damages. The purpose of the disclosure regulation is to strengthen the position of the franchisee and enable it to make an informed business decision before entering into an agreement. It is also expected that the regulation will lead to more balanced terms within the trade.


Thank you for reading FRANCHISE IRELAND.

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