Multi-brand franchise groups are responsible for many of the global franchise giants operating around the world today. For example, Yum! Brands owns KFC, Pizza Hut, Taco Bell, Long John Silver's and A&W; Intercontinental Hotel Group owns Holiday Inn Hotels and Resorts, Holiday Inn Express and Crowne Plaza; the Dwyer Group owns Aire Serv, GlassDoctor, Mr Appliance, Mr Electric, Mr Rooter, Rainbow International and DreamMaker Bath & Kitchen By Worldwide.

By building a team with specialist franchise knowledge and applying standardised and proven systems and procedures to a fit-all franchise model, these groups have launched or acquired a number of complementary business concepts and operate them as franchise brands with great efficiency. On the back of domestic success, they have then launched into international markets either through company-owned operations or by granting National Master Franchises and built international networks.

Multi-brand Mastermind

Inspired by these groups, Russell O'Connell is building a franchise empire as Myhome International. Described as "a multi-brand, multi-service group", Myhome International recently acquired its fourth franchise brand - Ovenclean, for £1.75 million - which will be developed as a growing national franchise alongside its Myhome, nicenstripy and Surface Doctor brands.

Originally from Australia, Russell had previously spent time working in the UK and South East Asia running business seminars and providing consultancy to small businesses. "I was interested in what makes small and medium sized businesses work or fail," he reflects.

"I found that many businesses suffered when the proprietor makes 'off the cuff' decisions, and encouraged businesses to put in systems and follow a systematic approach to doing business to encourage predictable performances and results.

This is how good franchises are structured and while in the US I was impressed by the approach of the franchise conglomerates which own a number of franchise brands. I returned to the UK five years ago inspired to set up a similar operation."

Russell's first effort was to start a residential cleaning business called Chores which, six months later, brought him into competition with Unilever when it launched its own residential cleaning business called Myhome. "Unilever invested a lot of money installing scheduling software, branding, training, cleaning processes...and after 18 months a change of focus within the company led to a decision to return to its core activities and Myhome was put up for sale," Russell recalls. "I bought Myhome in 2001, with Unilever retaining 10 per cent, and floated the company. While I inherited a good business, it wasn't immediately suited to franchising. I shrank the concept to its optimal size for franchising - a manageable business with the potential for 10 vehicles and 20 staff."

After operating with two pilot franchisees to "tweak" the business model, Myhome launched its franchisee recruitment in 2004, and the brand now has 52 franchisees operating. "The franchisees can start hands-on with one vehicle," Russell explains, "and then the business plan moves them forward over two years to achieve the 10 vehicle target."

In 2005 Russell's company became a multiple-franchise owner when it acquired garden maintenance franchise nicenstripy and soon after was granted the UK Master Franchise for Surface Doctor, a US bathroom and kitchen refurbisher originating in Colorado. "nicenstripy was a good fit with our existing business and the franchise proposition was a good one," Russell recalls. "However, the company had become a bit fragmented and its performance had been in the doldrums.

The important thing was that I saw eye-to-eye with the CEO and the management was open to our guidance. I could see a chance to turn it around and we put together a business proposition that is more about owning a successful business. We altered the offering to win more customers, tweaked the franchise systems and taught the franchisees to become more business-minded rather than job-orientated. Now we have 42 franchisees operating and have increased the turnover of the business fourfold. I think this proves we have the ability to transform a business."

The experience of becoming a Master Franchisee of a US brand has been different, with Russell focusing on refining and proving the business in the UK before taking an expansionary approach. "Surface Doctor had been tried in the UK before, but the UK Master Franchisee was floundering," he explains. "We made an inexpensive investment to take over the licence and have started from scratch. We spent six months tailoring the business to the UK market, then recruited two pilot franchisees to prove the concept. It is at an embryonic stage, but we have a lot of faith in it - the product is great and has attracted a lot of interest from potential franchisees. Over the next 12 months we're looking to bring in another eight franchisees, before rolling out the network nationwide."

Myhome International's recent purchase of Ovenclean brings an established network of 172 franchisees under its wing, which greatly increases the group's overall family of franchisees to 250. "For our next acquisition we were looking for a mature business," says Russell. "We identified oven cleaning as a service which would complement our other businesses, and Ovenclean is by far the most established company in the sector. It has a good, templated business model with predictable revenue streams, low overheads, good management and lots of scope for future development by using our IT and marketing programmes to help the franchisees grow their businesses. The previous owner was looking to sell because of ill health, but has committed to staying involved to provide the benefit of his intimate knowledge of the business."

As a multiple franchisor, Myhome International has set up central systems and procedures which support all its franchise brands, including a central franchisee academy. "This is a purpose built resource to teach franchisees business skills," Russell reveals. "All our franchisees, whatever brand they're under, receive five days' residential training. Here, we focus on how to run a business: winning customers; recruiting, retaining and motivating staff; investing in marketing; managing profit and cashflow; and time management. It's a comprehensive course and franchisees come away with five volumes of information."

Further support includes constant monitoring over the subsequent 90 days. "We guide our franchisees through a set of goals," adds Russell. "All our franchises are turnkey, templated businesses with every letter pre-written and marketing material provided, to ensure the franchisees can lay proper foundations for their businesses to go forward."

Myhome International has focused on acquiring service concepts which can be provided to people's homes. This provides a synergy in that the businesses share a common customer base. "The franchisee's main job is to build up good core relationships with thousands of customers," says Russell. "We are then in the position to cross sell services from our other franchise brands to maximise on that customer base, which we do through a central call centre."

With his background of working in a number of countries, Russell is enthusiastic about expanding Myhome International's operations abroad. Myhome recently granted a Master Franchise for Ireland, nicenstripy has a franchisee in Australia, and Ovenclean has franchisees operating in Australia and Spain. "When we look at overseas markets we are looking to either grant a National Master Franchise, become involved in a joint venture or directly support a franchisee network from the UK," he reveals. "We can see lots of potential in our brands for rolling out international networks. We've set our sights on growing a truly international multi-brand group, and in acquiring businesses we are seeking to attract some key talent into our motivated management team.

"With seven major institutions behind us helping to raise funding for further acquisitions, we are looking for good franchise businesses with good management teams in place, who are looking for an exit strategy over two to four years. Our next target could be in the plumbing, electrical or carpet cleaning markets, but we are not restricting our attentions to home development markets."