As franchisees, I want local players capable of opening several branches.
You passed the 100-branch milestone in early 2014. Where do you stand today, on the eve of Franchise Expo Paris, where your brand will be exhibiting?
We have 125 branches in France, including 14 opened in 2015. In 2016, our goal is to open a total of 15franchised branches, including 8 under the Temporis brand. Temporis Consulting (which already has 8). We are, of course, maintaining our target of 160 branches by 2020.
We are also one of the five networks selected for the "most daring franchisor" of the year competition, which opens to online voting on March1, with the results to be announced on March 23, at the Franchise Expo Paris trade show.
Why have you chosen to develop almost 100% of your business through franchising?
Because I'm convinced that this model is the right one. For me, success means a boss at the head of a unit. I've never taken on investors in my network. Some people came to see me and offered to take over four zones and put branch managers in them. I turned them down. Because I want people who work. I want local players. That's why our network is gaining market share.
One of the ways you're expanding is through multi-franchising. Out of 90 franchisees, 26 have more than one branch. What do you expect from this development method?
A lot. If you set up your own business, you need to be able to repeat that success. That's why our franchisees have the option ofopening several branches. If you recruit people of a certain stature - and that's our case - it's a good idea to give them potential for development.
Our contracts therefore provide for several openings (within 3 or 5 years). They also stipulate that if the planned openings don't take place, another franchisee will be able to carry them out. Because we need good coverage of the territory.
So all your franchisees will become multi-franchisees?
Yes, unless they're in a big city where they'll only have one branch in their area. But then they'll be asked to grow in their agency, to open new branches as well. Temporis Consulting and then perhaps create specialized branches for specific professions.
Is there a limit to the number of branches a franchisee can own?
Yes. I don't want more than two zones per franchisee, or about 6 Temporis branches. This is a limit that we announce from the outset. I'd also like to point out that the allocation of a second zone in our network is very rare, even exceptional. To obtain a second zone, there are 9 allocation criteria (franchisees are aware of these criteria). If you only have 7, we present the file to the Suggestion Committee, which makes the final decision (this committee is made up of 4 franchisees who have already renewed their contract at least once).
You're asking for a €60,000 personal contribution for an agency, but you actually want €90,000. Why so much (out of a total initial investment of 140,000)?
This is because, in our profession, we need a financial guarantee, rather like real estate agents. For us, this roughly corresponds to AGS (Assurance Garantie pour les Salaires). In the event of a problem, the guarantee takes over from the AGS to pay the temporary workers.
The guarantee is set by government decree every year. As of January1, 2016, it stands at 122,128 euros. The financial guarantor therefore expects the contractor concerned to invest a capital sum fairly close to this level.
You're looking for new entrepreneurs. Are you also looking for buyers?
Yes... A few months ago, I took over a struggling agency for one euro, whose franchisee had forgotten to insure against non-payment (contrary to the terms of the franchise contract). I did it so that the Temporis flag didn't disappear from the town. I then put it back up for sale. But this type of takeover is exceptional.
You often emphasize the fact that 50% of your franchisees come from the temporary employment sector and 50% are newcomers. Do you stick to these proportions, and why?
I don't particularly care for this distribution, it's just a fact. And this balance suits me fine. I find it rich. It's not where we come from that makes our choice, it's the person. And whether or not they share our values.
Article published on February 29, 2016, by Jean-Pierre Pamier on Franchise Magazine.
