Frequently Asked Questions

Franchising explained

1. How long have you been in franchising?

Since 1993

2. How many franchised businesses are you running at the moment?

41 and growing

3. May I interview any number of these franchisees? And may I choose whom I interview?

Yes please feel free to talk to any of our Franchisees, we call them Senior Partners their contact details are on: Find a Specialist

4. What does your head office organisation consist of?

CNA is the executive search arm of the Pertemps Network Group Ltd. We are based at 7 George Road, Edgbaston, Birmingham, B15 1NP, United Kingdom. The Pertemps Head Office is in Meriden

5. How many franchise business failures have been experienced by your franchisees?

Since 2008 we have had three, all three recovered the franchise fee through placements but did not feel recruitment was right for them

6. How selective are you in choosing the franchisees?

Very, we spend a lot of time making sure CNA is right for you and that the work we do is going to allow you to grow the type of business you wish to own

7. What does the franchise opportunity cost? What is included in the price? What fees do you charge?

• The cost of the franchise is £30,000 plus VAT

• We charge an ongoing 12.5% of fees billed as our management charge

8. What capital costs will be incurred in addition to this price? And what will these costs be for?

• There are no additional capital costs

• You will need a computer, phone and your own internet access

9. How much working capital do I need?

You will need to cover your cost of living, and we suggest for six months, to ensure you are financially comfortable

10. What will be the gross profit margin and what costs will I incur in arriving at a net profit? (Do these figures take my salary and depreciation into account?)

• For a person working from home the profit margin will be close to 65% but as you bring on more consultants to work with you this will drop to about 35% because of salaries

• This does not take into account income taken out of the business

11. May I see actual accounts which confirm or fail to confirm your projections?

You can see the overall management fees earned but accounts are confidential to individual franchisees

12. What financing arrangements can you make and what terms for repayment will there be?

See question 7, if more funding is needed we introduce you to a number of leading UK banks

13. Can I have a copy of the franchise contract?

Yes but we like to meet you first

14. Am I obliged to purchase any supplies of goods and materials from you?

No

15. What advertising and promotional expenditure do you incur? Do I have to contribute to it, if so how much?

• We are head-hunters so there is no additional expenditure

• Some of our Franchisees advertise and we can provide access to advertising at the same competitive rate as Pertemps is charged

16. Can I work from home or do I need an office?

• Yes you can work from home, if you have a room/office to work from

• We advise in the long term that you work from an office when your business can afford to

17. What initial services do you offer to franchisees?

• Business planning

• Training

• Help setting up your business

• Marketing and Microsite setup

• Back office support

• Full factoring of your fees for cash flow

18. Do you train me? What does the training consist of? Who pays for it?

• Yes

• 1 week’s initial training

• 2 -3 master classes a year

• 2 conferences a year

• One to one coaching when it’s needed and requested

• There is no cost for training for the life of your franchise

19. What continuing/follow-up services do you provide after the franchise business has commenced?

• As much or as little as a Franchisee wants. Some people are in constant contact with Head Office, others only when they request help

• It is your business, you will know where and when you want help

20. Does the franchise contract permit me to sell my business? What restrictions are there affecting my rights to sell the business?

• Yes you can sell on your business

• Pertemps do have first refusal

21. For how long is the franchise granted?

• 5 years plus an additional 5 years

22. What will be my region of operation and how strict are the borders?

• We give you the right to trade as CNA International Executive Search worldwide

• It is a none restrictive contract, but we do have client ownership to protect your goodwill and clients

23. What will happen if I do not like the franchise business? Upon what basis can I terminate the contract?

• If you would like to close your franchise you can do so with 3 months notice in writing

• You can’t trade as an Executive Search business for 12 months

• There is no further charge.

24. What promotional materials do you supply and what do I have to pay for them?

• CNA has marketing material and this is supplied free of charge

25. What IT systems do you supply and do I have to pay for them?

• CNA has it own in house CRM powered by Bond International and supported by our in-house technical team. Monthly charge will apply at the rate £60 per user per month

• You will be provided with an email account fully integrated into all office system

26. What systems do you have for keeping franchisees in touch with you and each other?

• Our own Intranet

• 2 conferences a year

• They talk to each other all the time via phone and email

27. Do you publish a newsletter?

• Yes via the Intranet

28. Do you hold seminars / discovery days

• No, we like to meet face to face and find out your needs first

29. What exclusive rights do I get?

• None we don’t restrict you from working anywhere in the world

• We do have client ownership to protect your business

30. How will I cope with my book-keeping?

• We have a number of UK accountants we can recommend

• Each month we supply you with an overview of what you have billed that month plus any outstanding payment from clients and what credit control are doing to bring these payments in

31. What would happen if I ran into operational problems I was not able to solve? What help would I get?

• If we can help we will always try to resolve problems

• You own this business 100% and are responsible for winning new clients and servicing your clients

• We will help if and when we can

Tell me more about owning a  CNA International franchise