FRANCHISE IRELAND

(The online newsletter of the Irish Franchise Association)
Spring 2004

IFA CHAIRMAN'S MESSAGE - from John Green
Welcome to the first edition of our newsletter which will, I hope, improve communications between members, keep you abreast of developments and forthcoming events and generally raise the profile of Franchising. The next edition will be issued in early Summer and any editorial input or suggestions from Members will be welcome - it is your channel of communication.
Recent activities included the successful Franchise Exhibition in Dublin last November and you will know that Franchising received excellent coverage in the Sunday Times, Sunday Tribune last month and a two-page supplement was carried in the Irish Times on 3 February last.

Your Committee has been busy drawing up an action plan for 2004 which includes -

*This newsletter; it will be distributed to IFA members, other Franchisors, business editors of newspapers and magazines, business associations, government departments and third-level institutions

*Regional seminars; the first will be held at Jury's Hotel, Limerick on 23 March commencing at 6.30pm and will incorporate six short presentations from Franchisors and specialists followed by a "table-top" exhibition by Franchisors who seek Franchisees locally. It will be held in conjunction with Limerick City Enterprise Board. Similar events are planned for Cork and Galway in April and May and Dublin in September

Franchise Survey 2004; Franchise Direct is compiling the latest survey on Franchising in Ireland - the last one was for 2001 - and expects to launch it in May. It will be sponsored by Bank of Ireland

Franchise Awards 2004; it is hoped to send out nomination papers to all IFA members in the Summer and to hold the awards presentations in the Autumn. The categories will cover all sectors of franchising

New IFA logo; this will be available early next month and will be sent to all members. It will give us a twenty-first century image and I would encourage all members to use it on their promotional material

We are keen to make the IFA relevant to you our members, and to give a strong and positive image of Franchising to the public.

Thank you for your continued support
JOHN GREEN
Chairman, Irish Franchise Association

DEVELOPING A STRONG FRANCHISED BRAND
(BY NOEL DERBY)

The rules for developing a strong franchised brand are basically the same for any brand building exercise.
Start with the definition of a 'Superbrand' as an aspirational guide for your brand:
"A Superbrand offers consumers significant emotional and or physical advantages over its competitors which (consciously or sub consciously) consumers want, recognise, and are willing to pay a premium for" - Ireland's Superbrands - An insight into Ireland's leading brands 2000

Then, follow through with a simplified 22 step process for building a strong franchised brand

Plan

Develop a competitive strategy for the brand and the company*.
Understand what your brand is and is not - what it can and cannot do.
Research and understand your target market and audience - particularly understand what your 'heavy user' customers think of the brand/offering/service and its competition right now.
Assign a 'Brand Champion/Disciple' amongst the Directors - He/she will be responsible for managing all brand communications issues both inside and outside the company
Agree the brand strategy - develop the icon.
Document the Brand origins and uniqueness and protect the brand with trademark and other intellectual property protection
Determine the brand's positioning vs. competition
Develop a brand image/identity/character/personality and plan to communicate it broadly and clearly.

Develop

Research the imagery.
*Verify that the brand strategy matches the company strategy.
Develop an implementation plan with marketing and promotional tactics that support the brand strategy.
Prepare a brand launch plan that shows accountabilities, budgets, timing, targets and expected results.
Understand what role P.R. can play and examine the cost benefit equation with a P.R. practitioner

Execute

Agree detailed art and text for all building, vehicle, uniform, and stationery needs. Secure quotes for execution.
Develop and agree launch and promotional plans.
Develop sales and distribution plans
Agree criteria for how, where, when to use the brand and its icon.
Over deliver on the promised service.

Evaluate and adjust

Measure the outcome - research opinions on perceptions of brand promise.
Measure awareness internally/externally.
Based on outcomes, make adjustments as required.

(Noel Derby is a Director of Stretch-n-Grow Ireland Limited and was Editor-in-Chief of Ireland's Superbrands published in 2000.
Stretch-n-Grow is the world's leading health & fitness programme for young children and more details can be found at www.stretch-n-grow.ie) For further information contact Noel at 086 2414564 or 01 8322653

Members' News

Esquires Coffee currently operate 11 outlets in Ireland, 7 of which are located in the North of Ireland and 4 of which are based in the South. We have recently opened our kiosk format in the ILAC Centre, Henry St., Dublin.

We are also on schedule to open in the first half of 2004 - additional units in the North in Derry, Abbeyside S.C. and Craigavon and 2 in the South in Greystones and Limerick.
Contact Tony McVerry for further information, 086 2589076, Email: esquirescoffee@eircom.net

With over 35 thriving franchises already in place, and an ambitious ongoing development strategy for the future, Chem-Dry Ireland has much to shout about as they celebrate their 15th successful year in Ireland.

The progressive carpet and upholstery cleaning franchise is celebrating with the announcement that the prestigious Entrepreneur Magazine, in their exclusive 2004 rankings, have rated Chem-Dry:
   # 17 of the top 500 Franchises,
   # 1 In their business Category (for the 15th year in a row)
   # 2 of the top 101 Home based Franchises, and
   # 12 of America's top Global Franchises.

The ongoing development of Chem-Dry has been impressive since the launch and the recruitment of the first franchisee in Ireland in 1989. Approximately 95% of franchisees who have joined the organisation since 1989 are still operating today, and several Chem-Dry franchisees now own multiple franchise areas.
Chem-Dry Ireland are happy to offer a 10% discount for Carpet & Upholstery cleaning services to all IFA Member Companies and their Staff. Visit our website www.chemdry.ie or Email: john@chemdry.ie

New Members of the Irish Franchise Association

We welcome our most recent members and wish them every success in Ireland -

Lemongrass restaurants, established May 2001, now has 8 restaurants (5 of which are franchises), a further 2 opening in the next 12 weeks and an additional 5 by this time next year. They are Stylish Fun Asian restaurants with an emphasis on quality and value. For further information contact Niall Browne on 087 2555895 or visit our web site www.lemongrass.ie

'Protex is a mobile tyre sealant franchise opportunity. Protex (UK) Sales Ltd launched in August 200,3 since then we have signed 11 franchisee. On average we recruit 4 franchisees a month and we aim to have a network of approximately 60 by this time next year across the UK and Ireland. Please contact our franchise team on 0845 658 2820 for further information or visit our website www.protex.uk.net or email info@protex.uk.net

Cartridge World Ireland - market leader in the refill and remanufacture of inkjet, laser, fax and photocopier cartridges.

From it's current outlets in Dublin (North and South), Cork, Limerick, Donegal, Dundalk and Galway (base for Master Franchisee Gerry Smyth) a guaranteed, refill and remanufacture service is provided to both domestic and business customers, giving average savings of 50% on the price of new cartridges and supplying all print related products.

Cartridge World already has 15 years successful trading history, in 19 countries worldwide, with over 450 stores employing almost 2000 people - it offers a Franchised business opportunity to people from all walks of life, with first class training & support provided in a dynamic market place.Contact Gerry Smyth Tel: 091 767 987/Fax: 091 767 977/email: cwireland@eircom.net

NEWS

(From the US Commercial Service in Dublin)

Finola Cunningham of the US Commercial Service tells us that THE INTERNATIONAL FRANCHISE EXPO will be held in Washington D.C, April 30 to May 2, 2004.
The US Commercial Service recently hosted the signing of a master licence agreement the U.S. Embassy which resulted from a meeting at this show in 2002 between a U.S. restaurant chain and two Irish business partners.
Anyone interested in attending the show should contact Finola directly to arrange for free registration and other benefits. (01 6674753, Email: Finola.Cunningham@mail.doc.gov or visit www.buyusagov/ireland)

TAKE CARE TAKE ADVICE

(By Bill Holohan, Solicitor)

There is an old saying that the lawyer who acts for himself has a fool for a client, i.e., a lawyer who tries to advise himself, is advising a fool!

When it comes to entering into some kind of contractual relationship, whether it be a Franchise Agreement or anything else, no lawyer would do it without getting advice, but equally no one else should do it either.

In recent years, I have acted for people who have found themselves in a situation where they have signed up to Franchise Contracts, and then found that all was not as it was meant to be. In one particular case, there was a services-based franchise which was to be the "bees knees" and revolutionary in terms of web development services etc. It turned out however that the franchise was more conceptual in nature than existing in reality.

While it could be said that the franchisees had not done their homework properly in checking out the franchise, discussing things with other franchisees beforehand etc., the facts were that they now found themselves in a situation where they had bought a real "pig in a poke" in terms of the value of the contract, at a IR£60,000 / €76,000 cost.

When they consulted me, it was with a view to seeing how they could get themselves out of the contract and get some IR£60,000.00 which they had paid for the grant of the franchise, back. On examining the contract it became apparent that the contract provided for a choice of law jurisdiction in Delaware, and the laws of Ontario were to apply. In other words they would have to go to Delaware to fight their case and do it in accordance with the laws of Ontario in Canada. This would mean bringing Canadian lawyers into Court in Delaware in the United States to give evidence as to what the contract meant, ever before they would get to the question of whether or not the franchisor was in breach of contract and ever before the question of whether or not they were entitled to recover their money would even be looked at.

In the particular case, we managed to get the money back from the Franchisor on a staged basis, but this was very much getting the frying pan out of the blazing inferno as distinct from the fire. Had they been properly advised beforehand, (on all fronts), they might never have signed up to the agreement in the first place. For the sake of saving on €1,000.00 or so in legal fees, they ran the risk of losing €76,000.00, which had in fact been contributed by the parents of those involved.

Sometimes, enthusiasm will get the better of people. Somebody would never contemplate buying property without the benefit of a solicitor, for example, so why would they sign a different kind of contract where they are committed to paying money, without involving a solicitor. Bottom line, a word to the wise, spend a little to save a lot, (even if it involves paying lawyers)!

Bill Holohan, Solicitor, Bill Holohan & Associates, Cork and Dublin
021 300734, 01 4911915, www.holohanlaw.com

"FRANCHISE IRELAND" IS ISSUED BY THE IRISH FRANCHISE ASSOCIATION,
UNIT 30, TOLKA VALLEY BUSINESS PARK, BALLYBOGGAN ROAD, DUBLIN 11.
www.irishfranchiseassociation.com
CHAIRMAN - JOHN GREEN (01.8303940, email john@chemdry.ie).
DIRECTOR- MICHAEL BRADLEY (087.9187798, email michaelbradley@irishfranchiseassociation.com)