Just loving being a fast-food franchisee

Jun 4 2008 by Sion Barry, Western Mail

FRANCHISING in the UK was worth £10.8bn last year and for some is a sounder business alternative than going it alone.

According to the British Franchise Association in Wales, franchise businesses in 2007 had a total turnover of £510m.

The association argues that using the advantages of an established business model and brand tends to offer a lower risk alternative than creating a stand- alone venture

Huw Thomas is one such businessman. In 1995 he decided to take up a franchise with McDonald’s – one of the best-known franchised businesses in the world.

Mr Thomas now owns and operates two restaurants in Cardiff and Barry, which in 2007 saw combined sales exceed £2.45m as well as employing more than 110 people locally. He has found that running a franchised business offers significant benefits.

He said: “I grew up in Barry so I see myself as a local businessman working within my own community. Operating a franchise for McDonald’s means I enjoy the independence of running my own business, but I can also draw on a wealth of expertise and resources. I feel liberated to make my own decisions and can adapt to make the most of local opportunities.”

Mr Thomas’ varied career as a teacher, an export sales manager in Ecuador and a franchisee with Clarks’ shoes has provided a solid base of business experience that has proved invaluable.

He said: “Choosing the right franchise is a big decision – it’s your own money on the line and you need to be sure that you are investing in a sound business model. McDonald’s employs some of the most talented professionals around and it helps to be able to draw on that knowledge and expertise.”

There are significant advantages to running a franchised business, as a new idea has already been tested to ensure it is successful. What’s more, larger franchises will have a well-established trading name and are likely to offer marketing support and comprehensive training programmes in a wide range of business skills. Good franchisors can also help secure initial funding.

Mr Thomas said: “McDonald’s has some fantastic training opportunities for staff at all levels, which means that when I identify talent I have the tools to help my staff develop their skills.

“At the same time, I can operate on a local level too and I’m involved in a number of community initiatives. I am deputy chair of the Trust for Sick Children in Wales, and regularly give talks on business and entrepreneurship at local schools and offer work experience placements through Careers Wales.”

He added: “For entrepreneurial people owning a franchise is a great opportunity to take a fantastic brand and make your own mark.”