Global Franchise 10.3

As more and more luxury brands begin packaging top-tier services into high-end franchise opportunities, we explore the rise of the ultra-premium franchise model THE MILLION- DOLLAR TICKET communication; we believe this attracts stronger entrepreneurs,” explains CEO and Founder Sven Wallén. BoConcept’s Global Head for Network Expansion, Lars Hovang, shares these concerns. The lack of franchised brands with premium business models in the UK and USA made the BoConcept team question the value of attending franchise fairs in those regions. ranchising, traditionally associated with standardization and affordability, is quietly becoming a vehicle for premium experiences. “I think franchising has always been a growth vehicle across the entire spectrum, from economy brands all the way up to high-end concepts,” observes Stephen Smith, CEO/Founder of HOTWORX fitness spa. “What may be happening now is that more premium and luxury brands are starting to recognize that opportunity. If you look at lists like the Franchise 500, you’ll see that higher-end offerings exist in every category: fitness, food, services. Franchising gives them a structured way to scale.” Common misconceptions Long-held assumptions about what constitutes a franchisable brand may still be standing in the way of achievable and successful franchising of boutique, niche, and highly personalized businesses. GNFWorldwide’s Fernando López de Castilla Elías expands on the misconception at play here. “Premium concepts can be just as franchisable as burger joints. People confuse franchisability with scalability. They are very different. A luxury concept can be franchised, but its scale will look different.” “Anything people do not want to do themselves, or cannot do themselves, can become a franchise,” observes JTTatem, President and Lead Advisor of Transworld Business Advisors. As well as making the possibility of franchising seem improbable for owners of luxury brands, the stigma around franchise models can be off- putting for potential franchisees. For this reason, Fantastic Frank, a design-led real estate agency, has gone so far as to avoid the term “franchise” when recruiting. “The word ‘franchise’ doesn’t always have a great ring to it when combined with quality and premium brands. I think the big American chains have given franchising a certain stigma. That is why we decided not to focus on the term ‘franchise’ in our F The success of ultra-premium franchises relies heavily on impeccable brand alignment and top-tier customer interactions. And that means training and field support need to go above and beyond too. Hybrid model: Operating across 60 countries, BoConcept offers a hybrid training model to franchisees that places particular importance on on- the-job learning. Observation: Training is implemented by both head office and field teams. New franchisees are invited into existing operations to observe best- practice process and brand delivery. Peer-to-peer: A training “academy” combines online and peer-to-peer learning. Initial training focuses on brand values, tools, KPIs, and business setups. On-site support: Trainers go on site three weeks before a new store opens, stay during opening week, and return three to four weeks later. S O L I D F O U N D A T I O N S Word by | LYDIA GROVE BoConcept showroom 72 GLOBAL FRANCHISE Issue 10.3