Help others to find work

By LINDA WHITNEY FOR MAILONLINE
Updated: 19:00 EST, 15 February 2004

THE recruitment and training sectors are set to grow this year - but if you want to get a piece of the action, a franchise could beat setting up on your own.

Recruitment sector insiders forecast a 4% rise in turnover in the next year, after a recent minor downturn, according to trade body the Recruitment and Employment Confederation.

And franchisees might be better able to weather the ups and downs of business than solo operators, says Albert Wilde of franchisor CNA Executive Search,

'A franchise gives you ongoing support in running your business, he explains. 'You don't have all the administration of a solo operation, so you are free to generate more business. Franchisees in other areas might pass business on to you, too.'

As well as executive search consultants such as CNA, recruitment franchises include general recruitment agencies such as Select Appointments, healthcare staff specialists such as Carewatch, and agencies supplying drivers and industrial staff such as Driver Hire.

A franchise also solves the problem of lack of experience in the sector. 'The most important thing is that new franchisees have business experience at managerial level and are able to relate to decision-makers,' says Mr Wilde.

'You can change sectors completely provided you know how business works.'

Your past business experience and contacts also equip you to become a specialist in recruiting into that sector.

Some recruitment franchises also have training arms, but many franchises specialise in training alone. Choices include computer training (from Best Computer Training), driving instruction (the AA Driving School) and management coaching (The Wilsher Group).

For these franchises, you might need some existing skills - the AA Driving School franchise, for instance, is open to qualified instructors only - though some allow you to operate as a business manager and recruit people with the specialist training skills required.

At the very least, you will need an interest in the subject; at most, you might need teaching qualifications, especially for music or sports training franchises. Check the details carefully in advance.

Checks that make financial sense

CHECKING out the financial and legal aspects of a franchise is vital. Just ask Richard Hawkins.

With 32 years as a chartered management accountant, Mr Hawkins, 54, was well-placed to check whether the franchise packages he considered could deliver the financial goods. 'After redundancy, I looked at two printer cartridge refill franchises and liked the look of InkXpress,' he says.

'But before I signed up, I checked the financial model the franchisor supplied and played around on a computer to check the effect that varying levels of business would have.'

Anyone with a reasonable knowledge of computer spreadsheets could do the same, Mr Hawkins says. But he warns: 'If you do not have a business or accounting background, get an accountant to check out the financial side for you.' He also got a local corporate lawyer to check the franchise contract. 'It cost about £300, but it was worth it because with no legal expertise, you cannot spot if contract terms are onerous,' he explains.

Fortunately, Mr Hawkins liked what he heard and opened the Basingstoke InkXpress franchise last June. 'It's now meeting its targets,' he says.

Getting professionals to check contracts and franchise packages can pay off. Nicola Broadhurst, head of the franchise department at solicitors Mundays, says: 'Franchisors typically say that franchise agreements are standard and non-negotiable, but they might not include all the things you have been promised in verbal discussions.'

• Lists of accountants and lawyers specialising in franchising are on the British Franchise Association's website www.britishfranchise.org.uk. Contact details for franchises at www.franchiseworld.co.uk.