Case StudiesJanuary 28, 2022 2022-01-28 9:30
SMALL TALK NURSERIES
Small Talk Nurseries (STN) operates a daycare nursery, aimed at children aged 1 to 5 years.
The business is located in Birmingham and has been trading for nearly 10 years. It is geared to creating a safe and stimulating environment for early years education. The owner, Ranjit Singh, has developed a number of innovative activities and methodologies that provide a highly productive experience using balanced play and learning techniques.
The brief given to Clive Smith was to initially review the business and determine how appropriate franchising would be as an expansion strategy. He was subsequently commissioned in April 2016 to create the infrastructure and systems to franchise STN, to include assisting with the planning of staffing and other resources to enable the franchise network to be built.
The work plan required that we examined the detail of how STN functions in order to arrive at a recommendation about the suitability of franchising the business. A few operational issues were identified that were considered incompatible with efficient franchising. These were addressed by the owner and we subsequently created all systems, processes and procedures required for the business to operate as a franchise. This included writing the Operations manual, for which all administrative and operational functions had to be precisely documented, with flow charts created to aid explanation. In parallel with the preparation of the Operations manual we also devised the training course for franchisees.
In early 2017 it became clear that other business interests were likely to impede the owners ability to dedicate the time required to develop the franchise and we advised him to suspend the franchise initiative until such time as the required commitment could be given. This advice was accepted and the project was put on hold for 15 months. It was resurrected in Spring 2018, with the focus being on the setting up of a pilot franchisee. This commenced trading in Brierley Hill in September 2018. The plan Franchise Intelligence recommended is that this pilot would be operated for at least 12 months to allow a full assessment of all of the franchise systems, and in particular to ensure that the protocols connected with adherence to child safeguarding practices are sufficiently robust.
This has been done and some modifications made. STN is now in position to develop its network of nurseries in the Midlands area. We have provided a franchisee recruitment plan and advised on the staffing requirements for this next stage of the project.
We continue to advise the owner on the development of the franchise.
Inventory reports for rented property.
S.R.P. Inventories is a well-established property checking business operating in the London area. The scope of service is focused on conducting periodic checks of rented properties and reporting on the condition to landlords or managing agents.
Having devised a highly efficient inspection and reporting system, and with effective marketing channels established, the owners has committed to a franchise development plan to expand the business to a national level. A franchise consultant had been appointed to assist with this strategy, however progress had been disappointing, with few of the franchisees initially appointed achieving the required levels of success. The development plan had therefore been suspended. Franchise Focus was subsequently approached to conduct a review and advise on corrective actions
The requirement was to undertake a thorough review of the structure of the franchise model, to include systems, documentation, training and the tactics that had been employed to market the franchise. This review inevitably focused on the data and feedback available from the franchisees. Key was an overhaul of the franchisee recruitment procedure, specifically to refine the franchisee profile and the adoption of more disciplined interview and selection techniques. Trading forecasts were re-worked and a business planning tool devised to enable prospective franchisees to create their own projections based on reliable criteria. In conjunction with the client, KPI’s and minimum performance standards we were set and an audit and review process devised. Critically, the scope of the franchisees’ obligations were re-set and a new franchise agreement prepared in conjunction with one of the UK’s most eminent franchise solicitors.
The S.R.P. Inventories was subsequently relaunched in November 2019 and currently comprises 3 franchisees, with a further 3 due to be appointed.
Quick Service Restaurant
Offers a indo-chinese fusion menu on a take-way or casual dining basis.
Oodles Chinese has been established in Leicester for over 8 years. It operates two restaurants, one in the City centre, the other just 3 miles away in a busy residential area. It has developed a unique menu, having a Chinese origin but with the addition of marinades, sauces and spices that give the food a unique Indian twist.
Franchise Focus consultant Clive Smith was commissioned in April 2017 to advise an appropriate franchise development plan and to subsequently develop the entire system on which a robust network of franchised restaurants could be based. The owners specified that all aspects of the project were to be handled due to the time constraints of running the business they faced.
The project required the management of all aspects of designing and creating the infrastructure of the franchise. Having devised the format of the franchise, to include calculating a viable franchise fee arrangement, defining the territories, devising logistics relating to product supply, and mapping out the training requirements, the project also required the Operations manual to be written. This task entailed a full assessment of the restaurants operational and administrative functions – to include the cooking technique for every item on the menu being explicitly described, with photos to help explain each stage of cooking. We also specified the franchise support, quality control and audit systems needed and recommended accounting software to enable the Oodles Chinese team to maintain a firm grip on the financial position of each franchisee – it provides ‘real time’ reporting.
Subsequent work has focused on providing materials to assist with the training of franchisees and we are contributing to the drive to recruit franchisees. Importantly, Franchise Intelligence is retained to continue advising the owners on the franchise development programme.
The first ‘pilot’ franchise opened in Birmingham in February 2018. The network has now expanded to comprise 11 restaurants, with deposits paid for a further 3 that will open during the next few months.