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select’s martyn forges franchises

Select Group’s chief executive Diane Martyn claims Select is three years ahead of the competition after “aggressively” driving its franchise strategy across all of its divisions.

When Martyn joined from Blue Arrow in December 2000, Select only had 10 franchise offices, but since then she has invested millions in back office infrastructure and has implemented a strategy to award 30 franchise partnerships every year until 2010.

She told Recruiter: “I have always believed in the franchise model in a local marketplace.  It’s local ownership, local inspiration, contacts and relationships, penetrating the local marketplace at very low costs.”

Over half of Select’s branches are now franchise partnerships, which makes economic sense to Martyn because they break even after the first year and make money in month one.  Compare this, she says, with corporately owned branches which take three or four years to break even.

Franchising also solves the problem of retaining staff, claims Martyn.  “Franchise partners are signed up to five-year contracts and they’re running their own business with the full support of Select.  I am very proud of their professionalism and commitment.”

Select now has 40 franchise partnerships, or as Martyn says ‘the Select family.’  That is out of a stable of 65 Select Appointments – the support staff division and 27 Parkhouse offices – Select’s industrial division.  “It is an aggressive strategy deliberately so.  We are about three of four years ahead of our competitors.”

Martyn says franchising is all about credibility.  “If people are going to invest up to £250,000 they need the testimonials from successful existing franchise partners, which is how our model works.”

Last year Select launched its bespoke recruitment service for the hospitality industry and six franchises were awarded last year.  By 2010 Martyn hopes to have 35 Select Hospitality franchises, and between 60 and 70 Parkhouse and 100 Select Appointment franchises.

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