Franchise FAQs

The company:

Who are Auditel?

Auditel is the UK’s leading cost and purchase business franchise opportunity. Established in 1994, we have been franchising successfully since 1997 and achieved Full Membership of the British Franchise Association in 1998. Our network consists of over one hundred franchisees. We have thousands of satisfied clients who have benefited from our unique Total Cost of Purchase approach.

What is cost and purchase management? Why is it needed?

All organisations need to spend money to do business. Premises-related costs, fixed and mobile communications, IT, utilities, waste management, finance and environmental compliance are just some of their operational overheads. Cost and purchase management is the essential strategy to minimise their exposure to a volatile marketplace. As a result of this increasing complexity, many companies welcome the help and advice of our outsourced specialists to manage the cost of these services.

What is the size of the marketplace?

The total cost of key services in the UK is staggering - communications £57.5bn, utilities £50bn, IT £15bn, finance £100bn plus, waste £18.5bn and premises management £105.7bn – and is set to grow even further. There are over 400,000 potential clients in the marketplace, the majority of whom increasingly recognise just how valuable it is to make savings and increase profitability.

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Personal:

Do I need any previous experience for this profession?

No, it is not necessary. Our consultants come from varied backgrounds. Some may have expertise in one of our service areas; others may have gained experience at senior management level or within a profession. But more important is a genuine interest in our work, a desire to be successful, the ability to embrace challenges and to take on new opportunities. Our targeted training will very quickly enable you to become a fully-fledged Auditel Consultant.

What is my status as a franchisee?

You will be a self-employed businessperson within the Auditel network with continuous support from a head office team of over 20 members and over 100 like-minded professionals. You are in complete control of your working hours, your colleagues and your clients. You will also enjoy a far more flexible work-life balance within the security of an established and successful business model.

What is the time frame for becoming a franchisee?

Our franchise recruitment team will send you the Auditel franchise prospectus. You and your partner will be invited to a Discovery Meeting to discuss what we do and our training and support programmes. If the opportunity is right for both parties, we will build an action plan for you to consider. It will cover your due diligence process, review the franchise agreement, arrange funds if required, and finalise your personal marketing and business plan. A suitable training date will be offered. You can be in business within 2-3 months from your initial application if required or a longer period can be chosen.

Will I need staff and premises?

You will not require staff or external premises since you can work from home. Some of our franchisees team up with their partner who can be trained with you at no extra cost. You may grow the business with up to 5 partners subject to additional fees.

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Financial and legal:

What is the cost of an Auditel franchise? What will I receive?

The initial franchise fee is £34,900, plus VAT, which entitles you to use the Auditel trade name and business system and includes your initial residential training courses, copies of all the operating manuals, access to the Auditel Information System and other online business management and analysis tools and a starter pack of stationery and marketing deliverables.

The ongoing monthly management service fees are £195 or 12.5% of income earned, whichever is the greater in months one to eighteen, £395 or 12.5% of income earned, whichever is the greater in months nineteen to thirty five and £525 or 12.5% of income earned, whichever is the greater in months thirty-six to forty-seven, £595 or 12.5% of income earned, whichever is the greater in month forty-eight and beyond.

All fees above are subject to the current rate of VAT.

Among other things, these fees cover unlimited access to ongoing support and training, your personal and professional development programme, innovation and development of the business system, updates to any existing business management and analysis tools and access to any new tools developed after you join, quarterly regional meetings, development of marketing deliverables and campaigns, and development and maintenance of supplier relationships.

Is the franchise agreement renewable? Will a cost be involved?

The initial term of your franchise agreement will be 5 years. However, you will have the option to renew and there is no charge involved.

How do I find finance if required?

The Auditel franchise is highly respected by all the major banks. We are able to introduce you to a local bank manager who is familiar with franchising. Up to 70% of any funding requirements may be provided.

Could I sell my business?

Yes, this is possible and you should be able to realise your investment and the goodwill in the business. Of course as you will appreciate, we must be confident that your would-be purchaser would be right for the Auditel business.

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Day-to-day operations:

What is a typical day for an Auditel franchisee?

You might be in the marketplace seeking clients. You might be conducting an audit on a client’s business expenditure, presenting your findings, implementing your recommendations or monitoring the new services to ensure value is maintained. Some of our franchisees prefer to sell the concept, others to carry out the analysis. You might decide to do both or choose a colleague for the other aspect. Many of our franchisees work in joint ventures.

How do I find clients?

Our simple, step-by-step client acquisition process will show you how to build a solid and profitable client base. It includes advice on how to effectively use your existing network of contacts, how to develop new networks and introducer of business relationships, how to run direct marketing and sequential marketing campaigns and how to generate referrals from existing, satisfied clients. We also have a team of dedicated telemarketers to make appointments for you and our Business Development Director will accompany you on your first two prospect visits.

How do I generate my income?

As an Auditel consultant, you will earn 50% of all savings that you achieve on your client’s behalf. This is usually over a three-year period for each saving, but lasts considerably longer in many cases. Here’s an example:

Total expenditure under review:	£68,000
Savings achieved:	£11,110
Refund on historical billing error:	£ 2,500
Your projected fee would be:	£11,110 x 50% = £5,555 per year
	£16,665 over 3 year savings period
	£1,250 (50% refund)
Total projected fee	£17,915

What is the opportunity for repeat business?

You do not require huge numbers of clients. Your strategic cost management plan will provide immediate savings for a client, but also sustained improvements well into the future. Your initial clientele should therefore provide you with an income for many years beyond the duration of the initial agreement.

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