Posted:13-September-2005
Changing Nature of Franchising
Bill Ewbank, Head of Franchise Sales at Domino's UK and Ireland, talks to business journalist Andrew Moody about the changing nature of the franchising industry.
Bill is one of the more prominent franchising figures in the UK and, as Domino's celebrates its 20th anniversary in this country, he shares his thoughts on what makes a great franchisee.
Q. Domino's is celebrating its 20th anniversary in the UK. How has the nature of franchising changed over this period?
A. This is an example of where size definitely matters. As franchising has grown it has become less blue collar and is now recognised as a genuine route to business success, both for franchisees and franchisors. There are a lot more people franchising as a means of making a living and this has in turn given the industry more diversity, which can only be a good thing. The British Franchise Association was founded just before us - about 25 years ago - and that has helped give franchising a certain respectability it didn't have before.
Q. How has the average Domino franchisee changed over 20 years?
A. They are richer. The proposition is also more expensive which really reflects the value of the franchise.
Q. What do you see as the key strength of the Domino's franchise?
A. The brand and I think that goes for any successful franchise. That is the key thing a franchisee is buying. By putting our sign above the door the franchisee has the expectation of taking £10,000 a week. If he or she sets up as plain Mr or Mrs Smith they might take just £2,000.
The franchisee gets training, know-how and supplies from us but it is the brand that really matters.
Q. You now have 149 franchisees who operate 380 stores in the UK. What do you look for in potential franchisees?
A. Although at £228,000 our franchise is in the capitalist league where someone might just want to invest, get other people to do the work and let the money come in, we actually don't want people like that.
We want people who are prepared to work in the store. It is a late night cash business which also involves managing young people. It is demanding and because of this we are not overcome by people who want to be franchisees. The rewards are clearly there but you have to work for them.
Q. What is the worst possible thing someone can say in an interview?
A. Someone saying they want to be a Domino's franchisee because their wife is good at cooking! They haven't understood that we are a system. We don't want our franchisees tinkering around with the ingredients - we provide fresh, quality ingredients and our customers expect and high quality, made to order product that is consistent across the business. We are an efficient machine which franchisees become part of. They can also bring new ideas to the table as long as they buy into the existing model in the first place. Someone with or without food experience is equally capable of running a Domino's Pizza franchise, although they do have to like pizza!
Q. Are those who want to become franchisees getting younger?
A. Yes, we are getting a lot more graduates, although this may also reflect the fact that there are a lot more graduates around. Some 27 per cent of Domino's franchises are under 30. The average age is actually 43 and the average starting age 35.

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