Women in Franchising. Female business owners recommend franchising

Recent research shows that the average woman working full-time as an employee will lose £330,000 over the course of her working life through the gender-related pay gap. One way women can overcome this is to become their own boss and invest in a franchise

The Equal Pay Act was passed in 1970 in a bid to reconcile the gender-related pay gap. 38 years later, research shows that the situation is far from resolved with women still fighting for equality in the workplace. The Trades Union Congress (TUC) 2008 has found that while the pay gap between men and women has narrowed in recent years, it is still there with men earning 17.2 per cent more than their female counterparts who hold the same or similar positions. In fact the Equal Opportunities Commission has calculated that 'over the course of her working life, the gender pay gap will cause an average woman, working full-time to lose a total of £330,000' (before income tax and National Insurance Contributions have been deducted).

One way women can take control of their futures and finances is to become self-employed. Erika Watson, Executive Director of Prowess 'the UK Voice for Women's Enterprise,' whose members advise over 100,000 women thinking of starting or growing a business every year, describes the benefits of women becoming their own boss: 'Self employment may enable more women to pursue a career they are passionate about at a level which matches their skills and experience. One particular advantage is that it can provide the ability to work flexible hours that suit you, which can obviously be a big help when it comes to childcare. While being responsible for the overall direction of your company and your working life it can also provide an immense sense of personal satisfaction and self-confidence.'

Yet only 27.3 per cent of all self-employed people are women. Erika continues: 'Women are more likely to have problems with confidence, self-esteem and access to finance than men, this can deter them from any notion of becoming self-employed. Those who do decide to start a business often have a more careful and gradual approach to starting and growing a business and are more likely to use and value business training, mentoring and networking. This means that supportive relationships are essential, whether that is through business counselling, mentoring or peer support circles.'

Franchising is an ideal route for women looking to become self-employed, because it provides women with the opportunity to be their own boss, take control of their earning capabilities while at the same time benefiting from the support and training package on offer from the franchisor. The franchisor guides the franchise owner through the different elements of running the business and offers support from a range of avenues such as head office visits, telephone calls, web forums, emails, annual conferences and the franchisee network which acts as a peer support circle ensuring the franchise owner never feels alone. However, the NatWest/British Franchise Association 2008 UK Franchise Survey found that while the number of new female franchise recruits has increased in the last decade from one eighth of the total number of new recruits to over one third (34 per cent), franchising still remains a male dominated industry.

Sandra Todd and Lisa Tobias both decided to invest in franchises because they liked the thought of being their own boss while taking advantage of ongoing support and training from the franchisor. Since becoming franchise owners their earning potential has increased. Sandra operates the Worcestershire-based Rosemary Conley Diet & Fitness clubs franchise and Lisa owns the West Scotland Domino's Pizza franchise.

Sandra joined the Rosemary Conley Diet & Fitness Club network two years ago and is thrilled with her decision to invest in a franchise, as she explains: 'Running my own business is fantastic, although it can be challenging at times. The backup and support from head office is second to none so I never feel completely on my own. In my first year I managed to build the business up to a turnover of £75,000.

'The training is ongoing and two or three times a year head office arranges a franchisee get-together where everyone in the network can meet up and share advice. The training course enables you to gain a qualification in OCR Exercise to Music, Nutrition and First Aid. With the nutrition modules I have the opportunity to take more modules and study part-time for a degree.

'Prior to becoming a franchisee I worked in sales as a jeweller, however I found it difficult to juggle work and family commitments as I had a three-year old son so I decided to leave. Before my son was born I was Assistant Manager for a high street retail store, but when my son was born they were unable to keep me on in the same position on a part-time contract. I was offered a part-time sales associate position but this would have meant a large pay cut, which I was not keen on taking.

'My husband encouraged me to investigate franchising because I would be working for myself while having the safety net of ongoing training, support and a tried and tested business model to work with. Rosemary Conley appealed because I had been a member in the past and lost three stone through the programme. This persuaded me to look into running my own Rosemary Conley franchise and becoming a fitness instructor.

'Franchising is a great route for women who require a position that will fit around family commitments. This is because the administration side fits in when you have time, and I teach classes at times that suit my members and my lifestyle. I often teach classes at night, when my husband is home so he can take care of our son. Knowing your earning potential is down to you and the harder you work the bigger your rewards is an attractive incentive!

'The earning potential is definitely there once my loan is paid off - although already I am earning a lot more than I was working as an Assistant Manager. By investing in a franchise I have been able to fulfil my dream of buying a new house because of my wage increase. We have also been able to buy a new car. Although I have not been on holiday in the last two years because I wanted to focus on establishing the business in my territory, I intend to take a break later this year and have a cover instructor teach my classes.'

Lisa decided to invest in Domino's franchise opportunity in 2004. Favouring the pizza business over university, Lisa decided to turn her part time job into a full time career and left university half way through her PE teacher training. She worked as a Domino's employee for six years, working her way up to management level, before deciding to invest in the Domino's franchise opportunity. Four years on, Lisa has four stores operating within her territory generating a combined turnover of £2 million and has a fifth outlet in the pipeline for 2009, which once launched will make her the joint-largest female franchise owner in Domino's Pizza's worldwide network.

She says: 'My decision to invest in the Domino's franchise was easy because I had worked for Domino's for a number of years and loved it. I believed that Domino's offered a great business model and I knew that providing I followed their guidelines I could make a huge success of my own business, while still having the added safety net of a brand like Domino's behind me. I was 23 when I decided to invest in the franchise, so approaching the bank was daunting. However the fact I was able to demonstrate my experience and wanted to invest in such a well-known, successful brand gave the bank the confidence to back me financially.

'I would definitely recommend franchising to other women as I have had a really positive experience and am earning a lot more money as my own boss. Despite my management training, I was put on the franchisee-training course to ensure I was confident in dealing with all aspects of running my own business. This included everything from pizza making to bookkeeping, staff recruitment and training. In terms of support Domino's marketing and IT departments help with any queries I have and my Regional Coach is on the other end of the phone to talk through any problems.

'In retrospect if I had become a PE teacher while I would be earning a good salary I would not have anything to show for all my hard work. However, by owning a franchise I have a sellable asset, which can be sold at a later date to set me up for life. Also, one of the benefits of investing in a franchise is flexible working hours. This means in a few years' time when I have built up the business and there is a structure in place. My husband and I can begin to reap the rewards of the sacrifices we are making now by placing a manager in every outlet in control of the day-to-day activities, which will give us more time to concentrate on growing the business.'

Reported by Jess Sturman