uk & International franchise data
According to the 2018 British Franchise Association survey, the UK franchise market comprises nearly a thousand franchise operations, employing over 710,000 people.
In the USA, the International Franchise Association (IFA)’s 2021 figures state there are more than 733,000 franchise establishments and according to the Asia Pacific Franchise Confederation (APFC), there are over 75,000 franchise businesses operating in the Asia-Pacific region, which includes countries such as China, Japan, South Korea, Australia, and India.
Source: British Franchising Association and NatWest (2018)
SME FRANCHISES
In the UK there are big differences in the size of franchise operations, from premium high street brands selling a territory for over £350k+ to a small kid’s activity territory costing under £5k.
High street brands like McDonalds, Pizza Hut etc will have well-established central offices with HR, PR, accounting, legal, marketing and communications support. Whilst the others, indeed the majority of franchise operations, will offer these services in-house or retain agencies where necessary and, most importantly, when they can afford to.
These costs are often an inhibitor to growth as franchise fees and MSF (Management Service Fee) simply aren’t enough to cover the costs of expensive agency services and growing the business. Brands who join Incergo will be able to benefit from these services at much-reduced fees via economies of scale and shared knowledge and experience from the other franchisors in the group.
agglomeration™
Incergo’s adopted model, Agglomeration™, sets out to bring together small to medium-sized franchises, who would benefit from being part of a larger organisation, to take advantage of shared central services, if they chose, such as:
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Invoicing and debt collection
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Administration
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HR
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PR
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IR
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Marketing/digital marketing
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Management and recruitment expertise
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International franchising experience
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Customer service
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Peer support/mentoring
selling your franchise to incergo
One way to join Incergo would be for a franchisor to sell their business to us and in return, receive Incergo shares to the value of their franchise. However, that is not the only method available to us, and interested franchisors are invited to contact us to find out more about the other financial methods available to us.
support for franchisors
The benefits of bringing experienced franchisors together to share best practice, support and mentor each other cannot be underestimated either and, as we know, reflect the very best attributes of being part of a franchise.
As franchisors we constantly extol the virtues of support as part of the franchise business model to our new franchisees; Incergo’s Agglomeration™ model will bring that same support to franchisors.
Franchisors who wish to remain with their business, will be collaborating with each other for the betterment of their business and the public limited company (PLC).
franchise brands unaffected
Although the franchise will be owned by Incergo, franchisors who join us will retain 100% control of their brand and simply use the services we provide as they wish.
buy out or agglomeration™?
When franchisors become a part of Incergo, they have a few options: they can either sell their business to us entirely and exit, or they can opt to retain full control and collaborate with other franchise owners in the PLC to grow their business or they can opt for a hybrid version of those two options.
a franchisor's exit strategy
Incergo will offer an attractive proposition for a franchisor looking to exit their business entirely. Selling to Incergo will ensure the franchise’s continued existence whilst protecting its brand name and network.
In summary, franchisors can benefit from joining Incergo to strengthen their brand, increase their visibility, reduce their costs, share knowledge and experience and create wider opportunities.
q&a
Am I selling my business to Incergo?
Yes, you sell your business to Incergo. Generally, in return, you will receive shares in Incergo but there are other renumeration methods we can discuss with franchisors on an individual basis.
Will being part of Incergo benefit my business?
Absolutely. Incergo is in part based on the agglomeration method which brings together like-minded franchise owners to share, if they wish, centralised operations, saving time and money and giving you the support of a strong network of experienced franchisors.
How will being part of Incergo benefit my franchise?
It won’t affect it at all. Your business stays exactly the same. The only difference is the shares in your Ltd company will be owned by Incergo. You will continue to run your company in exactly the same way, but with added resources and support from the rest of the group.
Can I leave Incergo?
Whilst we’d hate to see you go, you can sell your Incergo shares after a set period of time and remove yourself as a member of the board, but you can’t remove the company.
We understand that you may have questions regarding joining Incergo, and we welcome you to reach out to us to assess if we might be a suitable match for each other.