With an award-winning concept developed over six years, SUMO Managing Director Colin Carnachan reveals the company’s future expansion plans to the FDS Southern team.

Gordon Patterson: What was the original inspiration behind SUMO?

Colin Carnachan: In 1998 co-Director Mike Bushell and I identified the market need for an underground utility detection service due to the fact that the construction industry had moved to the use of non-metallic pipes, which could not be found using traditional detection techniques.

GP: How did you go about providing a solution to this market need?

CC: At the time Mike worked for PipeHawk PLC (now a major shareholder), which had developed a ground penetrating radar system that could detect any type of buried utility, and we spent the next four years fine-tuning the technology and creating SUMO’s operating systems.

Gary Rigby: What is the size of SUMO’s market in the UK?

CC: Because there was no existing market, we estimated it at £4 million in 1998. It is now running to at least £20 million and we anticipate that it will grow into a £100 million plus market sector in the next decade. I would personally anticipate that in the not too distant future construction companies will not be allowed to dig up the roads without an underground utilities survey being done in advance.

GR: When did you launch the SUMO franchise?

CC: We piloted in 2002 and launched the first independent franchise in 2003.

GP: Who is a typical client?

CC: Any organisation which digs a hole in the ground or needs to find a clear area. The client base typically consists of major construction companies, utility companies, road contractors and district councils, although we also do work for large home builders, conservatory companies and small contractors.

GR: Do you have a proven marketing strategy for this defined market?

CC: Absolutely. Quite apart from traditional advertising and PR activities, we purchase a live construction project database of every contract awarded in the UK. From our Head Office we market direct to these contacts and our central marketing team employs a combination of direct mailing, e-mails and direct sales techniques to win the business.

GR: So, in effect, you undertake the primary marketing for the franchisee?

CC: That’s correct. However, our franchisees are expected to assist with marketing and local presentations and maintain good customer relationships with the client base in their territory.

GP: How is the business performing?

CC: Repeat business rates are running in excess of 80 per cent. New customer referrals are in excess of 50 per cent. Our quote book runs in excess of £750,000 at any one time. We win over 90 per cent of all quotes issued where the contract is awarded and, as a result, our turnover is doubling year on year.

GP: Is your technical system unique?

CC: Yes, both the radar system and the operating system used by SUMO is exclusive to SUMO.

GR: How many franchisees do you have in the UK?

CC: We have a policy only to recruit franchisees in line with the turnover growth. We currently have 14 franchised outlets throughout the UK, with a planned expansion of at least six in 2006.

GP: I understand you provide a good support structure to your franchisees?

CC: The SUMO franchise is unusual in as much as we provide as many centralised services as possible. This extends to marketing, contract negotiation, invoicing, credit control and dealing with administration issues such as accounting records, PAYE and VAT. This high level of back office support enables our franchisees to focus their time on earning money and enjoying a good quality of life.

GP: Are there good potential earnings for the franchisee in SUMO?

CC: After all costs are deducted, franchisees typically enjoy a net profit before tax of around 40 per cent. Therefore, with a turnover of £100,000, the franchisee profit would equate to some £40,000.

GR: Are there any target areas you are looking to recruit into?

CC: As our business expands, we need more franchisees across the UK. Currently however, we have specific needs in the North East, East Midlands, London Area and the South West.

GR: Where do you hope to be in five years’ time with this business?

CC: We are the largest provider and the leading brand in the provision of underground utilities detection services in the UK. Within the next five years we expect to capitalise on this and so become the dominant force in the UK marketplace. At that point, we will take the business overseas.

GP: I understand that you recently won an award?

CC: Yes, it was part of the British Franchisor of the Year Awards 2006. Our particular achievement was the ‘Daily Express Brand Builder Award’.

GP: For a relatively new franchise it is quite an accolade. How did you achieve this?

CC: In effect the SUMO concept has been developed over a six year period and I think that the judges were suitably impressed with the fact that we had created a completely new market sector, developed a high profile blue chip customer base and established SUMO as the industry expert in its field.

Over the last decade the Snack-in-the-Box network has recorded a number of successes. Gordon Patterson and Gary Rigby interview Director Bill Owen.

Gordon Patterson: Congratulations on the 10th anniversary of Snack-in-the-Box (SITB ). Have you been with the company since the beginning?

Bill Owen: I have been fully involved with SITB since the original pilot business was established as a viable franchising opportunity. I have been responsible for evaluating and refining the original model and taking the opportunity to a fully developed national network.

GP: What kind of interest do you recall receiving 10 years ago from the franchisee marketplace?

BO: 10 years ago the SITB concept of delivering snacks to the workplace employing between two and 20 members of staff was unique. This was, and still is, an opportunity to capitalise on the massive potential that this niche market offered. It generated tremendous interest from prospective franchisees throughout the UK and continues to do so. The scale of the marketplace and the strong association with the powerful brand name of Cadbury allowed us to recruit over 20 franchisees in just 12 months.

Gary Rigby: Your relationship with Cadbury seems to be key?

BO: SITB has come to recognise the power of brand association. Clearly such a well-known and respected brand as Cadbury has allowed both franchisees and customers to feel confident with the SITB concept and this has been a major factor in the establishment of our national networks.
As an indication of our commitment to continuing brand association we have now launched a further franchise with our sister company, VendSetters in association with Ginsters. This opportunity allows franchisees to develop their businesses in association with Ginsters, one of the top 10 brands in the UK specialising in sandwiches and savoury pastry products. Again we are focusing on maximising delivering the Ginsters ‘Real Honest Food’ brand to the workplace market via vending machines and mobile catering facilities.

GP: Has the business system evolved or changed much over the years?

BO: Over the years the basic concept of delivering confectionery and savoury snacks in pre-packed self-service boxes has remained constant. However we have adapted our product range to cater for the changing eating habits in the workplace and have developed a much more efficient data capture and management information system that allows franchisees to benefit from computer-based systems.

GR: With the benefit of hindsight, would you change much if you were starting out again?

BO: Probably not a lot. Having identified a massive neglected marketplace, SITB’s unique way of delivering snacks to the workplace via a method that suits the end user is profitable for all concerned. The Self-Service Box and later Compact Vending Solutions perfectly satisfy customer demands and as the concept was tried and tested at the point at which it was brought to the franchise market, we knew we had a winning formula. However, the management team has gained a great amount of experience and knowledge over the last 10 years. This will be fully exploited as we move, grow and develop Vendsetters.

GP: How many locations do you service in the UK?

BO: SITB franchisees service around 18,000-20,000 repeat customers every week either with the Self Service Box or Compact Vending Machines.

GR: How do the box and vending franchises complement each other?

BO: We realised very soon after launching our ‘box’ franchise that a secondary market existed. This was the medium sized workplace that was too big for our box service and too small for conventional vending operators to be interested in. These sites, due to their size, had previously never qualified for a conventional vending machine. We therefore developed the ‘Slimline Compact’ vending machine to satisfy the needs of companies with 25-100 employees and our vending network was launched six years ago. We can now offer the complete snack provision service to two distinct markets in a complementary manner.

GP: You seem to provide strong field support to franchisees – what does that consist of?

BO: Support is very much key to our success. In addition to our Sales Director Matthew O’Neil and myself, our Operations Director Mike Funston heads a team of five field based franchise and support managers. An additional seven members of our Head Office team are available to provide support and advice on every aspect of our individual franchisees’ activities.
From the moment a new franchisee embarks on a one-week residential training course at our Head Office we are fully committed to ensuring that his business is comprehensively launched. This includes a sales campaign to establish a client base and a full vending machine or box installation programme to ensure that the franchise is generating a cash income within a matter of weeks. We are then totally committed to a personalised support package throughout the duration of the franchise term.

GR: How many franchisees do you now have for both the box and vending businesses, and is there any room for further development of the franchise network?

BO: With 65 franchisees operating our box service and a further 45 franchisees looking after 6,000 vending machines, it would be fair to say that 90 per cent of the UK and Ireland is benefiting from our service. There are still a limited number of opportunities available for the SITB service. Our challenge is to maintain thorough support to all existing franchisees as we move forward in developing another national franchised network with Vendsetters.

GP: What are the main milestones you would identify in your business development over the last 10 years?

BO: The initial satisfaction came in the achievement in the first year of over 20 franchisees successfully recruited. This was followed by full membership status of the British Franchise Association being awarded after just three years. The launch of our vending machine franchise six years ago was particularly important as it allowed us to provide the ‘complete’ service to businesses. Perhaps the most important recent development was in June 2005 when my colleagues Matthew O’Neil and Mike Funston and I successfully completed a management buyout of Snack-in-the-Box Ltd as a result of the retirement of the original owners. This has ensured that the business remains in the hands of the original three members of the management team who collectively have over 26 years of hands-on experience with SITB.

GR: Why did you launch the third franchise, Vendsetters?

BO: During the development of SITB we have demonstrated that we can build and manage a successful franchised network, we have become experts in the vending world and have demonstrated that we can maximise opportunities for a major brand. As a result we have worked closely with Ginsters, one of the most well known and trusted food brands in the UK, for over two years in preparation for the launch of our Vendsetters franchise. This is an opportunity for franchisees to capitalise on the £3,300 million sandwich market by a combination of specially designed vending machines and a bespoke fully featured mobile delivery vehicle.

GP: What is the market potential for the sandwich business in the UK?

BO: There are approximately 27 million people in the British workplace. The British sandwich market is worth around £3,300 million. About 19 per cent of sandwiches are purchased at work which means around £627 million is spent on workplace sandwiches. Only 48 per cent of workplaces have canteens and that number is diminishing. Therefore sandwiches are worth £345 million and growing.

GR: What are your further plans for growth and development?

BO: Our immediate objectives are to maintain the current level of support to our SITB franchisees and to maximise the Vendsetters growth opportunities. However, having demonstrated the benefits franchising can offer major brands we are currently in discussions with equally well known companies to evaluate how best to introduce their products and services to franchising.

Caremark Franchisees have the opportunity to become a major force within the care industry providing high calibre care staff to local authorities, private clients and care homes.

With our unrivalled experience in this area, Caremark will give you access to all our knowledge and expertise, our tried and tested policies and procedures, and all the tools you need to build a successful and thriving business.
Caremark Franchisees are a special kind of people. They recognise an excellent business opportunity, they are committed and passionate about everything they undertake, they demand the highest standards from themselves and their colleagues, and they are genuinely interested and concerned about the care currently being supplied in their community.

Your rewards will be personal as well as financial, because you will be providing a solution to a growing social issue.

Proven success

Kevin Lewis, founder and Managing Director of Caremark, has over 20 years experience in the care industry. He also has an impressive record in franchising, having previously developed one of the most successful and respected care franchises in the UK.

Professional support

Kevin is assisted by our new Franchisee Support Manager, Gail Jones. Gail will be providing ongoing training and support to our Franchisees. In her previous job, Gail developed a domiciliary presence for a major PLC.

A sound investment in care…

“I was looking for a Franchise with unlimited potential and a market that demonstrated excellent future growth. With the Aged population alone growing some 58% in the next 20 years and society choosing care in the home for so many needy people, Caremark met those criteria to the letter.”
Carl Ward, Caremark Franchisee

“Caremark is a highly professional company offering a complete franchise package, comprehensive back-up and support and a very rewarding business opportunity.”
Gordon Patterson, Leading UK Franchise Consultant

“Something which appealed to me about Caremark was the track record of its director, Kevin Lewis, who previously created the largest domiciliary care services provider in the country. That in itself gave me confidence that I didn’t have about any other franchise opportunity.”
Manjit Briah, Caremark Franchisee

Don’t miss out, call us today

The market is waiting, your earnings potential is enormous and Caremark has the best kept secret. This secret can only be obtained by people who are granted the Caremark franchise and receive its proven success formula.
We must appoint successful applicants on a first-come, firstserved basis, so contact us to register your interest now – without obligation – and we’ll be happy to answer any questions you may have.

Discover why it’s time for you to invest in care.

FDS Southern’s operating manual services provided by Franchise Assist have figured strongly in FDS Southern’s services to franchisors – and none of their experience has suggested that good manuals are anything but vital to the future success of a franchised network.

Gary comments : Ask FDS Southern what constitutes a sound franchise and they can answer that easily – a total, proven business system that can be communicated effectively to others seeking to invest in replicating it. At the heart of it all is ‘know-how’ – the sum total of the franchisor’s knowledge, innovations, methodologies and experience contributing to the profitable operation of his business.

When you buy a licence to operate a franchise, you are buying into that know-how and the proven system that puts the know-how behind the business system into practice. Our task is to ensure that our new franchisor clients develop a system that makes it as easy as possible for franchisees to replicate their proven methodology. That’s what the franchisee wants to buy and that’s what the franchisors are responsible for delivering.

So prior to franchising any business, a critical question we have to ask is ‘how developed and tested is the business system?’ It is not enough to have devised an excellent product or service. This cannot be marketed by franchisees until there is a properly documented operating system which can be replicated as a proven methodology.  

FDS Southern’s franchise operation manual specialist comments : What distinguishes a franchise from a simple licence is system totality, incorporating intellectual property rights, training and support. A vital part of this is documenting every aspect of the business in manual form – which becomes a reference book on how to operate the business, down to the finest detail. It has to be a fail-safe guide for franchisees, so that they could, if necessary, resolve problems for themselves. One problem we have discovered is that know-how and expertise often exists purely in the minds of the management. To them, running the business is second nature and common sense, almost instinctive. The idea of following a documented game plan seems pointless to them. For a new franchisee, however, operating the business is a completely new experience, so the only way he or she can learn is by studying and applying the operational principles behind it – that which is instinctively done by the management after years of operation.

New franchisors must therefore be willing to go back to basics in order to extract and record its components in a logical order. Many will find this a valuable experience in itself, for many die-hard practices may be recognised as due for improvement or replacement – and overall, it will give them a clearer analytical insight into their own businesses.

The prospective franchisee is inspired to invest in know-how only if it is seen to exist in the form of an attractive and well documented manual. It is a document which holds all the franchisor’s business secrets. That is what inspires franchisees to invest in the concept – for there is clearly a practical system behind it.

This valuable franchise operations manual material must have the benefit of full copyright protection and only be communicated to others on the basis of a confidentiality agreement, and this would form part of the franchise agreement, in which a franchisee would be licensed to use the system for a specific period of time.

The contents of the manual should be informative, instructive and detailed, capable of leaving the franchisees in no doubt as to what is required of them. The franchise contract should then require the franchisees to operate their business as per the requirements of the manual in its updated form.

The franchisor’s methodology is his most prized possession and it should be recorded in the manual. As consultants, we are very much involved in providing help and guidance to companies in the production of their operations manual. However, the manual can only be as good as the methodology which exists in the company. In that sense, the contents must be owned by the company and convey their business system in the precise manner in which they require the franchisee to operate it. The provision of a high quality operations manual so that the franchisee ‘does it by the book’ is an absolutely vital element in the proper marketing of the franchise and its subsequent successful operation on the part of the franchisee as he or she contributes to network profitability.

Dream Doors is one of the UK’s largest kitchen facelift retailers and Oxford Owners, Elaine and Mike Hurley celebrated the win of four awards at the Dream Doors Annual Conference held in Portsmouth.

Adding to their triple trophy haul from last year, the award winning Hurley’s remained ‘Franchisee of the Year’ and ‘Outstanding Monthly Performance’ award. For the second year running they also won the ‘Player’s Player’ because of their outstanding help and support to other Dream Doors franchise owners.

“We’re absolutely elated and still taking it all in,” says Mrs Hurley. “We went into the evening thinking we’d probably win two trophies, as all the showrooms’ sales can be seen on the Dream Doors intranet, but the others were a total shock. We won the ‘Player’s Player’ award last year, and didn’t think it was possible to win it again. It’s one that’s voted for by all the franchise owners and means a lot to Mike and I.”

After three visits to the stage, the couple were called up one last time to share the Checkatrade ‘Franchise of the Year’ award with fellow franchise owners, Mark and Amanda Edmans, from Dream Doors Chilterns.

“That’s nine awards in three years, so we’ve just commissioned a new trophy cabinet,” jokes Mr Hurley. “We’re proud of them all, but the Checkatrade award was out of the blue – it brought Elaine to tears. We’re delighted to be sharing the award with Mark and Amanda too. They’re a neighbouring franchise, and have become good friends of ours over the last couple of years. They really deserve the accolade.”