Franchising in the UK is on an upward trajectory.
Generating more than £15 billion for the UK economy, more entrepreneurs are seeing the benefits of the low-risk venture compared to the unpredictable nature of the independent start-up route.
To reduce the risk even further, many are looking at the franchise resale option that comes with numerous benefits. While it is imperative to do due diligence, the resale option allows entrepreneurs the opportunity to take an established business and push it to the next level. Much of the groundwork has already been done, staff are trained and in place and there will already be premises, a good location and existing customers.
At the Dragons’ Den backed Razzamataz Theatre Schools, resales only very occasionally come to the market when the franchisees decide to retire, relocate or pursue other interests.
Some franchisees have taken a school with a relatively small customer database and tripled it within the first year. Nick Furlong and Gemma Hextall bought Razzamataz Sutton Coldfield in June 2015. At the time of purchase, the school had just 38 students and now has grown to more than 350 students.
“We knew we could build a vibrant theatre school with lots of students but the speed in which it has happened has really surprised us,” says Nick. “Being part of an established franchise with all the power of the brand that is behind us has really propelled our growth. As well as our local marketing, we have the support of the national brand with a wonderful website and strong google and social media campaigns. This is something that we could not do as individuals and certainly not in the same time frame.”
For others, taking over a school which was firmly embedded in the local community is another challenge but one that Eve Ashton, Principal of Razzamataz Tonbridge has met head-on.
“Eve took over from a Principal who was retiring but who had done a fantastic job with the school and we knew he would be very much missed,” says Denise Hutton-Gosney, MD and Founder of Razzamataz. “When we met Eve, we knew that her energy and enthusiasm would push the school to the next level and it is wonderful to see how many new opportunities she has brought to the students and how her customers have responded so well to her. She has taken over a successful school but shown that new ideas and imagination can take the business to another level. We were delighted that she won the Best Showcase Award at our recent 20 year anniversary Conference.”
