Franchise Brands PLC (LON:FRAN)

Franchise Brands PLC (LON:FRAN)


Share Price
80.25 p
Change
0 (0.00 %)
Market Cap
£62.09 m
Proactive Investors - Run By Investors For Investors

Franchise Brands PLC

Franchise Brands PLC
Franchise Brands PLC was founded in September 2008 by Stephen Hemsley (Executive Chairman) and Nigel Wray (Non-executive Director) and is an international multi-brand franchisor with a combined network of over 450 franchisees in 12 countries across four brands.

Franchise Brands’ vision is to create a group of market-leading franchise businesses that benefit from...

EPIC: FRAN
Market: AIM:FRAN
52-week High/Low: 90.960p / 64.000p
Sector: General Retailers
Market Cap: £62.09 m
Website: www.franchisebrands.co.uk
col 3
col 4
col 5
col 6

Big Picture – A Deep Dive Examination of Franchise Brands PLC


Franchise Brands PLC Snapshot

Our strategy is to develop franchise businesses which have market-leading positions that primarily provide services to individuals and businesses. Our focus is on established brands which can benefit from our shared support services as well as our management expertise and experience.

We aim to take franchise businesses from ‘good to great’, rather than focus on developing early stage businesses.

The execution of this strategy is achieved through a combination of organic growth and growth through acquisition. The focus of future acquisitions will be on market-leading B2B and B2C franchise businesses of scale and where we believe our management and financial resources can significantly enhance an already profitable business.

Metro Rod

Founded in 1983, Metro Rod is a leading provider of drain clearance and maintenance services to the commercial market. The services are provided on a 24/7/365 basis by  41 franchisees with geographical coverage across the  entire UK (excluding Northern Ireland). In 2016, Metro Rod expanded its service offering with the launch of Metro Plumb.

Metro Rod’s specialist drain clearance and maintenance services include high pressure water jetting, CCTV surveys, drain or sewer lining, excavation, electro mechanical cleaning and fat and grease management. Metro Plumb offers a focused range of plumbing services mainly to the emergency insurance market.

Metro Rod serves national business customers across multiple sectors including facilities management, retail, water utilities, social housing, hospitality, and insurance, as well as local businesses and other customers in the private and public sectors.

Metro Rod makes a difference to its customers  by providing a first class and efficient service to ensure blockages are cleared quickly and with minimum disruption to the customer’s facility or business. Having addressed the initial problem,  Metro Rod is able to recommend any further work that is required to prevent a recurrence of the problem. This further work can be carried out  on a scheduled return visit.

Metro Rod’s Support Centre, based in Macclesfield, provides a very wide range of support services to our franchisees. An important service is new business generation and Metro Rod currently secures approximately 60% of sales for franchisees in the form of local servicing of national accounts. Other services provided to franchisees include the call centre, IT, invoicing and credit control, health and safety systems and processes, technical training and business management and support.

ChipsAway

ChipsAway is the UK’s leading mobile car paintwork repair specialist focusing on SMART (“Small to Medium Area Repair Technology”) repairs. We have been operating successfully for over 20 years and have over 200 franchisees in the UK.  ChipsAway also has a presence  in ten countries outside the UK through master franchise arrangements.

Our franchisees repair small scale damage on vehicles such as bumper scuffs, paintwork scratches, minor dents and kerbed alloy wheels. Our mobile franchisees conveniently come to the customer’s house or office, working from branded vehicles which serve as mobile workshops. Our specialists can also service customers through a number of drop-in Car Care Centres. Pricing can be competitive when compared to a typical body shop

Our marketing team works very hard to provide our franchisees with a constant source of high quality customer leads and in 2017, ChipsAway franchisees benefited from 246,000 enquiries (2016: 248,000). ChipsAway has regular national TV advertising campaigns which have run since 2009.

We are passionate about providing our franchisees with first class training and day-to-day support to help them grow their businesses. All new franchisees complete four weeks of initial training  at the Group’s facility which is accredited by the Institute of the Motor Industry, and this includes sales and marketing training. We support all franchisees to successfully launch their businesses. Post launch, franchisees are provided with on-going support and development to help them build successful and profitable businesses. Over 60 franchisees now have operations which are either multi-van, multi-territory or include Car Care Centres.

Ovenclean

Ovenclean is the longest established and leading  oven cleaning business in the UK, and has been successfully operating for over 20 years. There are over 100 franchisees in the network who clean  a wide variety of domestic appliances using our  specialist process and equipment.

Ovenclean franchisees are able to clean all domestic oven brands and models, including electric ovens, gas ovens, range-style ovens, microwaves, hobs and extractor fans, and also barbecues. All removable components such as racks and other removable parts are cleaned using specialist equipment in the fully equipped Ovenclean liveried vans. Ovenclean employs a  no added caustic system which has been assessed and approved to ISO 14001 standards. This helps ensure customers benefit from a safe and  hygienic environment.

Our franchisees profit from a regular stream of high quality consumer leads which they can then convert into customers. In 2017 our franchisees benefitted from 42,000 consumer leads which we generated (2016: 45,000).

New Ovenclean franchisees benefit from a comprehensive training programme in the field with established Ovenclean trainers. The Ovenclean trainers are experienced franchisees appointed by the Group to provide new starters with intensive in-field training on all aspects of the oven cleaning process, operational set up and customer and business management. This practical in-field experience is supplemented by a programme which includes a tailored sales and marketing course and a health and safety induction. Post launch, franchisees are provided with a full range of comprehensive support from a dedicated team.

Barking Mad

Established in 2000, Barking Mad is a leading provider of dog home boarding services (dog holidays) and has over 70 franchisees nationwide. As well as marketing to dog owners, the franchisees recruit dog-loving host families who can take in and look after  a dog when the owners are away from home. This is described to customers as a “dog holiday”. Customers enjoy peace of mind with a professional service which focuses on the individual needs of every dog.

Hosts range from people who are retired and have plenty of free time, to families who enjoy having  a dog to stay during school holiday periods. The franchisee organises all aspects of this service, including matching the dogs to the appropriate hosts, collection and delivery of the dogs, and customer communications.

Following a rebrand in 2017, Barking Mad started advertising on TV for the first time on national ITV and Sky channels.

Franchisees undergo a comprehensive training programme at Barking Mad’s head office prior to launch. Post-launch, Barking Mad provide a regular programme of support and development for franchisees. An important element of the support is the customer contact centre that Barking Mad operates on behalf of all of its franchisees.  The customer contact centre takes calls from customers and potential customers, explains  the Barking Mad service, facilitates bookings  and deals with general enquiries

Board

 

The Board currently consists of nine Directors who, between them, have substantial experience of franchising. Stephen Hemsley and Nigel Wray have a longstanding and successful track record in investing in and growing franchise businesses dating back to 1999. The Directors also have considerable experience of operating and growing profitable businesses and of investigating acquisition targets.

Stephen Hemsley, Executive Chairman

Stephen co-founded Franchise Brands in 2008. He has long-standing experience in franchising and currently holds the position of Non-executive Chairman, Domino’s Pizza. Having originally joined the then private company Domino’s Pizza as Finance Director in 1998, he led Domino’s to an IPO on AIM in 1999, and subsequently as CEO, he led the business through a period of growth. During his nearly 20-year association with Domino’s Pizza, Stephen has taken Domino’s from a market capitalisation of £25m to around £1.6 billion and membership of the FTSE 250 Index and from around 100 to over 1,000 stores across the UK, Ireland and Europe. He was appointed as a Director of the Company on 15 July 2016.

Chris Dent, Chief Financial Officer

Chris has substantial accounting and financial experience from his time in the profession and as a Finance Director of private and publicly quoted companies. Chris spent 4 years as Finance Director of AIM-quoted 7digital Group plc (formerly UBC Media Group plc) and began his career at Deloitte LLP where he spent 10 years within audit, corporate finance and transactional accounting services. Chris is a Fellow of the Institute of Chartered Accountants of England and Wales. Chris was appointed as Chief Financial Officer of Franchise Brands on 17 July 2017.

Tim Harris, Managing Director, ChipsAway and Ovenclean

Tim is a seasoned franchise professional with 20 years’ experience of successfully developing automotive, commercial and domestic franchise businesses in both international and UK markets. Tim joined the Group in 2008. Formerly Sales Director, Tim was appointed CEO in 2012 and has led the brands through a period of increased profitability and international reach, with Master franchises opened in the Americas and across Europe. Prior to joining the Group, Tim held senior sales positions at a number of franchisor companies including Autosheen, Pitman Training and Jani-King. He was appointed as a Director of the Company on 15 July 2016.

Peter Molloy, Managing Director, Metro Rod

Peter is a seasoned sales professional with over 35 years of management and commercial experience. Peter joined Metro Rod in 2003 and was promoted to the position of Commercial Director in 2005. In this role, he was responsible for national account sales and support. Prior to joining Metro Rod, Peter was Managing Director of Solaglas Replacement Glazing, part of the Saint-Gobain Group, with national responsibility for the network branches, field engineers, call centre and sales and marketing. Peter was appointed Managing Director of Metro Rod on 4 September 2017, and a Director of the Company on 21 March, 2018.

Julia Choudhury, Corporate Development Director

Julia has over 25 years of commercial, finance and investment experience. Julia joined the Group in 2008 and has a particular focus on corporate development, which includes acquisitions. Between 1997 and 2005, Julia held a number of senior management roles with AXA Investment Managers including Strategic Development Director, Head of Marketing, Head of Retail, and latterly Managing Director of AXA Investment Manager’s UK operation. Her early career was spent in Corporate Finance at BZW predominantly in mergers and acquisitions and equity financing. Between 1993 and 1997 she was Product Development Manager and subsequently Assistant Director at BZW Investment Management. She was appointed as a Director of the Company on 15 July 2016.

Colin Rees, Chief Information Officer

Colin is a highly experienced IT professional. He was appointed to the new position of Chief Information Officer on 1 April 2017. Colin was until recently Director of IT at Domino’s Pizza where he was responsible for all IT systems of the business from the point-of-sale system in over 1,000 stores, via the mobile and Web ordering system, through to the recently launched ERP system. He previously held a number of senior IT roles at EasyJet including Head of Software Delivery. Colin started his career at Argos plc and held a number of positions over a 10-year period. He was appointed a Director of the Company on 21 March 2018.

Nigel Wray, Non-Executive Director

Nigel co-founded Franchise Brands in 2008. He is an entrepreneurial investor in both public and private companies. Currently he is a substantial shareholder and Director at Prestbury Investment Holdings Ltd and many other companies. He is also the Chairman and co-owner of Saracens Rugby Club. He is a significant investor in a wideranging number of AIM quoted companies including Avingtrans Plc, Rotala plc, Hunters plc, Tekcapital plc, Reach4Entertainment Enterprises plc and MXC Capital plc, as well as a number of private companies in the domiciliary care, computer network solutions, hotel and restaurant sectors. He is a former director and former significant shareholder in Domino’s Pizza. He was appointed as a Director of the Company on 15 July 2016.

David Poutney, Non-Executive Director

David has over 40 years of finance and investment experience. David is Executive Chairman of Dowgate Capital Stockbrokers Ltd and a Non-executive Director of Be Heard Group plc. From 2001 to January 2016 he was Director and Head of Corporate Broking at Numis Securities Limited during which time he helped establish Numis as a leading institutional stockbroker and corporate adviser to companies on both AIM and the main market. Between May 2014 and February 2016, he was an Executive Director of Numis Corporation plc. In his 20 years as a corporate broker, David was involved in the listings of over 30 companies and advised many through extended periods of growth. In particular, he advised Domino’s Pizza from 2002 to January 2016. He was appointed as a Director of the Company on 15 July 2016.

Rob Bellhouse, Non-Executive Director

Rob is an experienced company secretary with strong commercial experience gained over a period of over 30 years, working mainly in listed companies with a strong focus on governance, compliance and risk management activities. He is currently deputy secretary of a FTSE15 natural resources business, having previously been the company secretary of a number of listed companies including Domino’s Pizza (2015-2016, on an interim basis), Lonmin (2003-2015) and Greene King (1998-2003). Rob was interim company secretary of AIM-quoted Alliance Pharma in 2016-17. He was voted ICSA Company Secretary of the Year in 2014. Rob was appointed as a Director of the Company on 15 July 2016.

 

Get in touch

[email protected]

01562 826705

​ ​Ashwood Court, Tytherington Business Park, Macclesfield SK10 2XF

Nominated Adviser & Joint Broker Allenby Capital Limited
5 St. Helen’s Place
London
EC3A 6AB
 
     
Joint Broker Dowgate Capital Stockbrokers Limited
Talisman House
Jubilee Walk
Three Bridges
Crawley
West Sussex
RH10 1LQ
 
     
Reporting Accountant and 
Auditor to the Company
BDO LLP
Two Snowhil
Birmingham
B4 6GA
 
     
Legal Advisers to the Company Gateley Plc
One Eleven
Edmund Street
Birmingham
B3 2HJ
 
     
Financial Public Relations
Advisers to the Company
MHP Communications
6 Agar Street
London
WC2N 4HN
 
     
Registrars SLC Registrars
42-50 Hersham Road
Walton on Thames
Surrey
KT12 1RZ

 

Columns Including FRAN

VIEW ALL

Market Reports Including FRAN

VIEW ALL
Video RSS

Videos

VIEW ALL VIDEOS

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use