Rewarding 12 months for Alex Clark Lettings franchisee

Vince Mitchell of Alex Clark Lettings Gloucester offers an insight into his first year as a franchisee

How did you approach buying and running your franchise? Did you have a business plan in place?
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Unlike most people who set about looking for a franchise, my new business opportunity was right in front of me. I have known Alex Clark, owner of the Alex Clark Lettings franchise, for over 30 years. We grew up together in Cheltenham and have been friends ever since, but business is business and when I heard he was franchising his lettings agency I was eager to be part of it.

I was lucky in that I knew he not only ran a very successful and well respected business, but he was a good, honest, hardworking man and that anything he put his name to would be worth getting involved in. I’d spent 20 years watching him build his business from scratch, so the opportunity to buy into that and be trained by him and his team, with his years of experience, was an easy decision for me.

Putting personal connections aside, I approached this business just as anyone looking at buying a franchise should and, yes, a solid business plan was part of that.

Is it panning out the way you planned?
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As with most business plans, what you write down on paper before you buy the business and what you end up with 12 months later are two different things, but in the main it has all gone to plan.

In my business plan I had allowed for salaries for myself and my daughter, Claire, who works with me full-time. Within a very short space of time I realised I needed more help, so took on two more part-time staff to help with our growing business. Obviously this was not in the plan, but we couldn’t have done it without the extra help and things are going really well now.

Did you approach banks for financial assistance to buy your franchise?
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No, I funded it myself through remortgaging.

Did you receive training from your franchisor, and if so was it useful?
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Yes, I had my initial training from Alex and his team in Cheltenham, which was very thorough. I did have a little bit of prior knowledge of letting properties, but from a landlord’s point of view, so I still had a lot to learn.

We went through everything from using the software to taking an inventory during the intensive two-week course. It was hard work and there was a lot to take in, but it was invaluable. I can’t imagine how I would have coped if I hadn’t had that training. Alex and the team taught me everything I needed to know to be able to open the doors on August 1, 2011 with confidence - and we haven’t looked back since.

Do you find the franchise model easy to follow?
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The model Alex has developed is well thought out and easy to follow. To reflect the difference in regional areas, our model has been tailored to our local market. For example, our fee structure is slightly different to that of Cheltenham or Kingston upon Thames. Like all new business owners, we have to wear multiple hats daily and are competent in all tasks involved in running the business.

What would happen if you had a question about the franchise model?
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If we go to Alex, as we have in the past, and said we find ‘x’ or ‘y’ in the model isn’t working for us, he is always receptive and will listen to our suggestions and, if they work better for the entire group, will share that best practice. That is one of the biggest benefits of being part of a franchise. Despite following a proven model, we are still running our own business and neither we nor Alex lose sight of that fact. However, we bought a franchise business with a tried and tested model, so we’d be foolish to try and change it.

What support did your franchisor give you in the first year?
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In the first few months we had weekly meetings with the team from Cheltenham and now, as our confidence in running the business has grown, these have been replaced by monthly meetings. The main support they provided for us in our first year - and continue to provide - is the knowledge that they were always there if we needed them.

One of the best things about our model is that if we have any tenants who are more than 30 days late with their rent - a very rare occurrence - we hand the case over to the credit control department at head office, who use their considerable experience to handle the case. We’ve only had to use this facility a couple of times over the last 16 months, but it makes an enormous difference and allows us to get on with building our business.

A few months ago we had a dispute with a tenant over dilapidations, so we went directly to the franchisor for help and advice. They were great, giving reassurance on the process we had to follow to resolve the situation. We learnt a lot from that.

Does your franchisor provide ongoing training?
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There is now a full-time franchise support team consisting of Martyn, the franchise manager, and Victoria, field support, who are committed to doing whatever they can to help us grow our business. Alex now uses Susie Crolla from The Lettings Training Centre to deliver his training to BTEC level 2 standard in conjunction with his own experienced staff. When Susie is in Cheltenham training new franchisees, Alex will invite us to join them if he feels it is something we would benefit from.

Did you make a profit in your first year of trading?
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Yes we did, and we are set to make a profit in our second year of trading as well.

Is running a franchise what you expected?
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In the main, yes. I think I may have been a little naive about how labour intensive it was and, as I said before, I hadn’t planned on taking on staff so soon, but apart from that it is exactly as I thought it would be.

Do you feel you made the right decision buying a franchised business?
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Certainly. Buying a franchise has taken a lot of the heartache out of starting a new business. There is no way I would have been able to open up a lettings business without the training and support I’ve received from Alex and the team. Apart from the support, it’s about being part of a well known brand, which is half the battle in establishing any new business. When you buy a franchised business that brand has already been proven and people know your name the first time you advertise a property.

Would you recommend buying an Alex Clark franchise?
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Absolutely. I’d also advise people to make sure they have funds to tide them over as they become established. Buying a franchise isn’t a get rich quick scheme and you need a certain amount to keep you going as you build your business.

How would you sum up your first 12 months as a franchisee?
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Manic, but rewarding. We have a strong team in the office and by pulling together we are building a strong, profitable, sustainable business for the future.

What are your plans for the next 12 months?
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We would like to expand our portfolio, take on lots more properties and become even more profitable in 2013