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Let’s face it - disputes are a drain on management time and energy that is better focussed on making your franchise successful. That is why finding a smart way to reduce or eradicate them is the way forward. Here is some useful information from Freeth Cartwright solicitors on how to use mediation effectiveley.

1. What is mediation?

You probably already know this but for clarification mediation is a form of alternative dispute resolution conducted by an independent party that is:

- private (no courts and potential bad publicity);

- cost effective (no court costs orders); and

- fast (no long waits for trials and court hearings).

2. Why mediate instead of going to court?

This can be summed up in one phrase:

"Courts are focussed on the dispute - mediation focuses on the deal"

If you choose to mediate you want to reach agreement rather than fall out. If you want to win work in a business situation how would you go about getting it? - Would you confront and accuse, or negotiate? Going to Court is confrontational - it is all about "winners and losers". Mediation is about negotiation - it is taking a business approach to resolving tricky situations in a way that benefits both parties. Mediators are not there to judge - they don't care who is "right" or "wrong". They look for solutions - how to reach an amicable settlement.

3. When should you mediate?

ASAP - Act as early as you can. We often see franchise mediations that could have been resolved much easier and quicker if mediation had been considered earlier. How early is early? Right at the start, when fee payments start to be missed and when the first rumblings of discord start to happen amongst the network.

4. What kinds of solutions?

Mediation is more flexible than going to court. Here are some examples of what you can do:

- Change the Payment Terms of franchise contracts - adjust payment structures, amounts and frequency;

- Change the Contract Duration - Reduce it or extend it - build in break periods;

- Change your allocated territory - increase it/reduce it;

- Explore exit options - e.g. buying the business.

Ultimately mediation is a creative process - it allows the parties to explore ways to resolve issues that otherwise might lead to a split.

5. Who does it?

Mediators are accredited by for example the ADR Group a recognised mediation body that specialises in forms of alternative dispute resolution. They are experienced and specialist lawyers that have considerable dispute experience.

6. How could mediation benefit me?

You invest a considerable amount of time and money in taking on franchisees. As with any relationship, along the way there will be misunderstandings and conflict, mediation is a tool to deal with those problems. It helps to:

- Preserve the relationship (It takes considerable resource find new franchisees after a fall out with a good existing one);

- Prevent damaging your reputation as a good franchisor (This creates the wrong impression for your existing franchise network and affects your ability to attract new franchisees); and

- Saves you time and Money (Disputes take up management resource better used in taking the franchise forward).

7. How can I ensure this approach is always used to resolve disputes in my network?

Build it into your franchise contracts and operations manuals. In this climate plan for challenging times by ensuring your contracts and manuals contain appropriate dispute resolution escalation procedures. The fact that you have disputes is not a bad thing - it is the way that you deal with them that matters. It is good practice and savvy business sense to consider how you will manage disputes when they happen.

If you would like more information about mediation please contact Philippa Dempster at Freeth Cartwright on 0845 274 6901 or via email at philippa.dempster@freethcartwright.co.uk

The term 'franchising' has been used to describe many different forms of business relationships. However, the form we are most concerned with, and the reason you have found this article, is what is called 'business format franchising' (If you answered McDonalds to the question above, you are thinking along the right lines!)

So, what is ‘Business Format Franchising’? Put simply, it is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles that franchisee to run their own business following the processes, procedures and training set out by the Franchisor. The Franchisor allows the franchisee to trade under the name of the franchisor and gives them a complete package containing all that the franchisee needs to run their business.

In short, franchising let’s you set up and own a business simply by paying money for the right to do so.

It is an increasingly popular activity in the UK, here are some quick facts from the latest NatWest British Franchise Association Survey 2011:

• It contributes an estimated £12.4 billion to the UK economy.
• There are 897 franchise systems in operation in the UK. There are an estimated 36,900 franchise units.
• There are an estimated 521,000 people employed in franchising.
• 90% of franchisees claim to be profitable even during this time of recession.
• Relationships between franchisees and franchisors are healthy, with 89% reporting satisfaction in their dealings.

Since signing up their first male Principal in mid 2011, Razzamataz Theatre Schools has been opening the doors for more men to take up the challenge and is delighted to announce that three more schools will open with men at the helm – Razzamataz in Barnet, Hampstead and Durham.  

The teaching profession and running children’s classes has always been a female dominated industry but with the continuation of the recession and the need for men to also work flexibly around childcare or other work commitments, opening up a Razzamataz franchise is making financial sense for men as well as women.

Professional actor Neil Roberts from Rickmansworth was the first man to launch a Razzamataz part-time performing theatre school for children along with his wife Lisa Hollander. The business made perfect sense to the couple because it allowed them to both continue their work as actors while running the school. “Razzamataz is a really sound business venture and its flexibility means I don’t have to compromise my work as an actor,” says Neil.  

Like many franchisees, the three new male Principals; Michael French, 30, from Watford, Sam Bradshaw, 26, from Finchley, London and Stuart Hall, 40 from Stockton-on-Tees, first saw Razzamataz while watching BBC’s Dragons’ Den in 2007 when Founder and Managing Director Denise Hutton-Gosney appeared on the show. Duncan Bannatyne’s backing impressed the guys and gave the business a lot of credibility. “I was extremely impressed with Denise, the brand and the business model,” says Michael. “Having grown up attending dance classes and being a professional musical theatre performer I thought the right progression would be to open my own Razz. I also know two ladies who run Razzamataz schools from the industry and they both spoke very highly of the company, which made me think this would be right for me.”

Although Michael is an experienced performer, having worked in musicals such as West Side Story, Chitty Chitty Bang Bang, Singin’ in the Rain and 42^nd Street as well as performing with Elton John, George Michael, Geri Halliwell and Michael Buble, he has never actually run a business before. “I’m not daunted by the fact that I haven’t run my own business because there is such a supportive team at Head Office that are happy to talk you through each of the stages. There is also a really comprehensive training system in place, which means that every stage of running a part-time theatre school is covered, which gives me a lot of confidence. I’m really looking forward to putting all my time and energy into Razzamataz.”

The franchise element of Razzamataz really appealed to the men as Michael explains: “Razzamataz is still very young and it’s a growing business and to be involved in something evolving is very exciting. I like the youthful, current and up to date approach that Razzamataz has and I’m really looking forward to meeting a lot of new people and seeing the positive influences on the children,” Michael adds.  

It is the flexibility that most appeals to Sam who currently runs a children’s party entertainment business that he set up five years ago supplying magicians, face painters, stilt walkers and balloon modelers to parties and events across London. He also continues to work as a professional performer, most recently in pantomine with actors such as Brian Blessed, Ruby Wax, Pamela Anderson and Paul O'Grady. The appeal of Razzamataz was that he can combine his skills in being a professional children’s entertainer with performing arts and the flexibility that Razzamataz offers enables him to combine all three.

Nurturing a child’s self-esteem and building their confidence features very heavily in all the Razzamataz schools and is something that Sam can personally relate to. “As a child I was very shy. At the age of seven I was asked by my seamstress auntie to do a one minute catwalk as a pageboy but when I spotted the 200 people in the audience I got stage fright and refused to go on. I wish I had had more confidence back then to overcome my fear. This experience gave me the impetus to join my local theatre group and 10 years later I was playing to 1,800 people a night at the Sunderland Empire Theatre. Joining the Razzamataz team will allow me to make a difference, build the children’s confidence and encourage them to show their talents without fear.”

Sam’s ability to entertain children and coax them out of themselves will enable him to lead a team of teachers at his Razzamataz branch to do the same. “I cannot wait to see the progression in every student. I am looking forward to meeting the shy Razz mini’s on their first day and then seeing them three, four or five years later singing solos and taking lead parts in our shows.”

Stuart from Stockton-on-Tees echoes this view and being able to work with and inspire children is something that he is looking forward to. “Being able to connect with young people and inspire them is a crucial aspect of being a Razzamataz Principal. As well as having a passion for writing and performing, I have also taught English to young people so this business allows me to bring all my experience to this new role.

“Razzamataz is not only a proven business model but I was also impressed by the opportunity to give young people the chance to work in not only the traditional musical theatre disciplines but also to learn about the more contemporary skills in singing pop, street dance and physical theatre in order to provide them with a wider breadth of skills for them to pursue a career in performing or to just have a great time every week. Furthermore, one of the reasons that I decided to purchase the franchise was because it gives me flexibility to combine a business with caring for our baby who is due at the end of May,” Stuart adds. 

Razzamataz is currently recruiting Principals to open further Razzamataz Theatre Schools. If you have an interest in the performing arts and are looking to launch a new business with the support of the Razzamataz team, call 01228 550129, email franchise@razzamataz.co.uk or visit www.razzamataztheatreschools.co.uk

The three new male Principals will open Razzamataz Theatre Schools in Barnet, north London, South Hampstead, north London and take over the branch in Durham. For more details on the schools visit www.razzamataztheatreschools.co.uk

Based in Glasgow, Organic Digital specialises in app development, branding, design, website management, digital signage, email marketing and ecommerce development. They are now offering people the opportunity to share in their success!

Managing Director, Graeme Kerr was quoted in 'Business Franchise' as saying:

"This is a once in a lifetime opportunity for business-minded people who want to be part of a proven and successful business model. Organic Digital is ahead of the field in an exciting marketing sector. We are in the market for highly motivated, entrepreneurial individuals with a strong interest in web development and digital marketing and a desire to run a business rather than just have a job. We will expect people to work hard and willingly, and to dedicate themselves to the Organic Digital ethos of quality, consistency and ingenuity. In return, the potential rewards are virtually limitless in such an exciting and fast-expanding marketing sector"

For more information, visit www.organicdigitalfranchise.co.uk

Fast-growing IT support business, robertson technologies, has made its move on the heart of the Capital with the appointment of Ray Lewis as its London West End franchise partner.

Ray, an IT industry veteran who previously ran his own IT support business in London before selling it, had been exploring various commercial enterprises – including starting-up a coffee shop chain. Ray is now delighted to be back in the frame offering IT support to SMEs.

“I was determined to re-join the IT support sector and spent a bit of time examining the franchising opportunities available. It seemed to me that the offering from robertson technologies to its franchise partners, especially in terms of ongoing sales support, was by far the most attractive and I’m very pleased to be working with Hamish Robertson and his team”, he said.

The London West End franchise is the eighth the company has so far awarded. Other franchises are in Reading, Thames Valley East, Heathrow, Stafford, Shropshire, Fife and Stirling and, Glasgow North. Each is supported by the company’s flagship operation in Edinburgh. 

Founder Hamish Robertson said: “Ray is exactly the type of experienced and business-minded individual we are looking for to become one of our franchise community and I am delighted we are now working together. London’s West End is a fantastic territory and I am sure he will make a huge success of it.”

Ray, whose business will operate out of premises in Wigmore Street W1, said: “It’s true that the West End has a great many IT support businesses within it, but I am confident that my many years of operating in the territory will bring in both former customers and lots of new business.

“The great thing about a robertson technologies franchise is that it doesn’t ask the franchise partner to be a techie, but looks instead for people who relish getting out and about meeting people and winning business. Head Office have already built a team of engineers in my area who’ll be doing the technical work.

“My role, and it’s one I love, is to get out there and target business owners and managers who need the high-quality IT support service we’re offering.”

Established by Hamish Robertson in 2005 while he was still at university, robertson technologies group now turns over in excess of £750,000 and is on course to award a tenth franchise by the end of the year.

He said: “SMEs are at the heart of the British economy and they are looking for straightforward, no-nonsense support which is relevant to their day-to-day business. That is the simple strategy which is underpinning our continuing expansion.”

Franchising comes in all shapes and sizes. Almost any type of business can be franchised! Just have a look at our earlier post entitled 'Can you franchise cupcakes?'.

Franchising is a very popular expansion method for those in the fast food and home cleaning industries.  It’s also popular in a variety of ‘man in a van’ enterprises.

However, where franchising is becoming increasingly popular is in the International Retail Sector. Companies looking to expand internationally are using franchising as their preferred method of expansion. By finding a franchise partner in a new country they find an easier route to market as they can take advantage of the local country knowledge of their franchisee.

At AMO, we have assisted some of the world’s biggest brands with their international franchising needs. These brands include Nike, Nokia, Cortefiel, New Look, and Marks & Spencer to name a few.