Antal announces franchise scheme
International recruitment organisation Antal has announced plans to vigorously expand its UK operations with a franchising scheme later this year.
Chief operating officer Graeme Read told Professional Recruiter that the franchising operation will begin in autumn.
He said the franchise deals will give new entrants to recruitment the benefits of a recognised brand and an established IT support network.
The plan will allow Antal to expand more aggressively during the predicted upswing in recruitment at the end of the year.
Read explained: ‘Last year there were around 18,000 recruitment companies in the country – by September we expect there will be a lot fewer.
‘Recruitment is next to investment banking in terms of wealth creation. The franchising deals will allow people wanting to get into the market access to our brand and expertise, rather than taking the risk of starting a new, stand-alone business.’
After a rigorous selection procedure, franchisees will have to pay an upfront fee of £25,000 and pay 12% of turnover to Antal in royalties.
In return, the franchisees receive training and Antal will reinvest part of the royalties in promoting and marketing the franchise network.
Read said Antal will also monitor processes and performance through the internet to maintain brand integrity.
However, Read admitted there was a risk that franchises could break away to form competitor organisations: ‘There is always a risk that will happen – it is up to us to continuously improve the network and, of course, make robust franchise agreements to prevent this.’
