Inside every under-appreciated, over-achieving recruitment consultant lurks a would-be business owner. They are winning the business and creating the revenue, so they want a bigger chunk of the rewards.

However, between the world of employee and employer there lies a vast chasm of experience, administration, legalities and expertise. And for many, the way across the divide is provided by a franchise.

The franchise model is simple. Consultants buy the opportunity to set up a branch of a big name recruiter. They pay an up-front fee and a percentage of income — but get a ready-made, branded business in a package that includes marketing, advice and training. It makes it hard to fail.

Doug Bugie, chief executive of Antal International's franchised businesses, says: "The UK is a tough market to crack. There are tens of thousands of people in the business, and it's hard as an individual to build a brand. Building a collective force really helps."

At MRI Network Worldwide, the support package begins immediately. Sam Collins, vice-president of training and support, says: "We will put together a business plan with them and talk about ways to raise finance, because we have a relationship with some of the banks."

They offer help from a business development manager, marketing, finance and training departments, and help with everything from setting up the website to finding an office, printing stationery and hiring staff.

Debbie Whelan, managing director of bluemonday Recruitment, sums up its approach as: "We provide the support and they can concentrate on recruiting."

Franchise companies also offer training. This may be formal, such as with 247 Staff, where there are three weeks of training followed by a year of mentoring. Alternatively it may be more fluid.

Whelan says: "We offer individual support to each person. We assess their strengths and weaknesses. Some work closely with us over the weeks and months, others want more intensive training."

Bugie adds: "We have 1,500 hours of training in our archives, offering layered learning about leadership, client development, employee retention and all the other aspects of running a recruitment business." MRI even offers training for staff members.

In addition, franchise companies will be on hand to give advice, especially when a franchisee is starting out. 247 Staff has a network of regional managers offering hands-on support. Whelan also points out: "In the early days they tend to need a lot more help, then they can dip back in as the business develops, on things like building a business, pay structure and people. They know I am on the end of the phone."

Support doesn't just come from the centre, it is offered by other franchisees, too. Bugie says: "We build a corporate family. People are in the same boat, so they help each other out. We have just opened in Brazil, so the whole group will look at their clients to see if they have any operations in Brazil to get things started."

In some franchises organised by geography, this is more formalised, and franchisees get a cut of any national business — 247, for example, has a national sales team providing work to its franchisees.

With this support, however, comes rules. The franchisor may dictate, for example, how your business cards look or how you answer the phone — which will be set out in the initial agreement. 247 has a specific look to all its offices, even down to the exact colour of the carpet. Some franchisors will insist you use specific providers, too, although 247 issues specifications and allows franchisees to find a cheap supplier.

The cost of a franchise can be significant — but then you are buying into a ready-made business with a proven formula. The price may be structured as an up-front fee with an ongoing cut of all income, or free up front and a larger share of the commission. Antal, for example, charges £25,000 to open a franchise in the UK, and MRI just over £30,000.

Bluemonday's Whelan, meanwhile, says: "We take a smaller fee than our competitors and more going forward, as we have a long-term relationship with our franchisees."

247 is different in that it doesn't charge a fee. Les Armitage, franchising director, explains: "We don't take a fee up-front, although we charge for training. The cost of establishing a franchised office is £15,000-£30,000. We also take 8% on an ongoing basis, but that includes the cost of invoice financing."

These costs may seem a small price to pay in the early days for the support. However, it's worth considering how this will work further down the line when the franchise is established and support may be less vital.

It's also worth choosing a franchise carefully — some work to different models. 247 Staff offers an unusual variation. Armitage explains: "In addition to our offices, we also run a homeworking franchise, where the individual is linked to the office but works for themselves. They can use the office space and support free of charge."

It's also important to consider the selection process the franchisor uses. Bugie says: "Some people think that if they can walk and chew gum you can sell them a franchise. When we sell a franchise, we put the majority of the fee back into the business.

"We don't make money on the fee; we make it on the royalty, so we need it to be a success. We will talk to 70-100 people, then see 10, each of those 10 we will spend up to 30 hours with. We will tell them about the challenges. We don't make it sound easy, and if someone says they are unsure, we won't sell it to them."

Whelan, meanwhile, says: "It's about meeting the partners and deciding if they have the skills to succeed in the recruitment business, run their own business and deliver the high service standards we require."

The ideal is to find a process that is not so stringent that it's impossible to get into, but stringent enough that other franchisees won't be harming the broader brand name with poor service.

It's vital to ask the right questions. Collins also suggests talking to existing members of the franchise to see what their experience has been like.

Choosing well is important. However, it doesn't take away the fact that to succeed in setting up your own — even through a franchise — you need to have the vital recruitment skills at the heart of the business, and the drive to succeed.

As Bugie says: "We can't guarantee success. You could give me a set of Tiger Woods' clubs and it might not take any strokes off my game. Just because there's a successful framework it doesn't mean each business will be a success."

We build a corporate family. People are in the same boat, so they help each other out





case study



Debby Lloyd bought a franchise from MRI Network Worldwide two years ago, operating EcoSearch in Newbury. She says: "I liked the idea — it was a tried and tested recipe for success. Why try to reinvent the wheel when someone is offering a successful model? I could have done it myself, but when you look at the tools available you can do it three times faster through a franchise."

She considered a few options, but chose MRI for the support it offered. "One of the beauties of the model is you can take as much or as little support as you want. I'm a very demanding person, so I want everything. They spent half a day going through my business plan with me, talking about what worked and what didn't. The marketing and the business development manager helped with all the basics of setting up, including the hiring and training of staff."

As well as support from the centre, there is help available from other offices. Debby says: "There are regional networking meetings where we talk to each other and help support each other."

She now has a seven-person operation, taking national and international business, and winning repeat business in her second year. She has an exit strategy for further down the line, which MRI helped her to plan. They will also be giving her ongoing advice to make sure she achieves it.