Franchising: ask the right questions and you should be on the road to success in your venture, advises Michael Âåñket.
Franchise operators seem to have a simple approach when it comes to recruiting - "Don't worry about what sort of work we're doing, just roll up your sleeves and gel down to it." Potential franchisees glancing through magazine advertisements could struggle to find out what line of business they are chasing because the wording is so vague.
It all seems to be a seller's market. Certainly the sector's profile - there are almost 680 franchise systems, operating in the UK - suggests business is booming. Figures released in the run-up to this week's Franchise Exhibition at the Wembley exhibition and conference centre show the industry is producing a turnover of £9 ½ billion a year and providing more than 326.000 jobs.
The initial start-up cost is now averaging £59,200 and the typical franchise is generating a turnover of almost £300,000 a year while 91% of franchises say they are making money.
It is impressive, but most of the large and reputable franchise operations complain they arc suffering from a shortage of "suitable applicants". More than 40% of franchisors say the biggest barrier to growth is a lack of franchisees they feel will make the grade.
1. It is simple to buy a franchise operation.
A Right  Wrong Ñ Doesn't say
2. Advertisements for franchises don't always make it clear what kind of business is involved.
A Right  Wrong Ñ Doesn't say
3. Franchising appears to be very successful in the UK.
A Right  Wrong Ñ Doesn't say
4. Each franchise operation makes about £9 ½ billion a year.
A Right  Wrong Ñ Doesn't say
5. The exhibition at Wembley provided around 326.000 jobs.
A Right  Wrong Ñ Doesn't say
6. You would need just under £60,000 to start a franchise operation.
A Right  Wrong Ñ Doesn't say
7. Franchises could grow faster if more money was invested in operations.
A Right  Wrong Ñ Doesn't say
Points) Business documents. Choose the document the manager is referring to. Write in your answer into the box.
forms
letters
figures
receipts
post-it
copies
invoices
mail
contracts
questionnaires
memos
report
diagrams
record
trade journals
“Whenever I have important … to write, I usually draft them several times before finally sending them.”
X 3 points) Business documents. Read the memo and note below. Complete the claim form. Write a word or phrase (in CAPITAL LETTERS) or a number on lines 1 - 5 in the box.
MEMO
TO:Barbara Sinclair
FROM:Peter Rogers
DATE:25 May 2002
SUBJECT:Insurance Claim
Could you deal with this? It's our insurance claim, for the damage at the weekend. The insurance policy is in my name, and we bought the carpet for £300, although it will cost at least £500 to replace. Luckily our office carpets seem fine.
Thanks
OWEN SMITH INSURANCE COMPANY
with compliments
Thank you for your recent phone call regarding flood damage in your photocopy room.
Could you please complete the attached form and return it to me as soon as possible.
Insurance Claim
NAME OF POLICY HOLDER: (1) __________
POLICY NUMBER: LD4756030C
ITEM(S) TO BE REPLACED: (2) ___________
LOCATION OF ITEM(S): (3) ______________
VALUE WHEN PURCHASED: (4) _________
CAUSE OF DAMAGE: (5) ______________
Date of damage: Sunday 19 May
X 2 points) Business documents. Read the text about the recruitment process and complete it with the words and expressions from the list. Write your answers (letters A, B, C, D or E) in the boxes.
A (1) … of contract by one party of their (2) … entitles the other party to (3) … for (4) …or, in some cases, to seek specific performance.In such circumstances, the contract may be (5) … (in other words, it becomes invalid).