Red Flag Alert franchise

The leading B2B intelligence and data franchise

Red Flag Alert is a business intelligence and data integrity franchise launched in 2014 by founders Dan Archer and Mark Halstead. It's currently the only franchise opportunity in the data/ business intelligence software field, with an estimated market of £936 million and a growth rate of 15 per cent. The goal of the franchise is to help customers work more effectively by reducing the risk of bad debt, vetting both existing and potential future clients and providing access to strong and comprehensive marketing data.

Franchisees aren't expected to have industry experience. Red Flag Alert offers all franchisees a three-week training course and a structured three-month launch programme, as well as ongoing support including business plan reviews, regional meetings, an annual conference and mentoring. This gives franchisees the opportunity to meet one another, share tips and discuss issues.

Franchisees receive a marketing database from Red Flag Alert in addition to centralised telemarketing support and quarterly marketing campaigns. The business also holds information on every business in the UK, with each franchisee being allocated a protected territory containing an equal number of businesses.

The Red Flag Alert franchise would ideally suit people with an accountancy, sales, IT, legal services, finance or telecommunications background. The ability to offer a consultative service to hundreds of small businesses, as well as excellent communication and relationship-building skills would be strong assets.

All potential franchisees are vetted through a rigorous selection process to ensure that the opportunity is suitable for them and the wider Red Flag Alert business. Franchisees are offered help to produce a credible business plan, which is in turn used to assess suitability, along with psychometric testing. However, the character and personality of potential franchisees are equally important in the selection process. These are assessed through face-to-face meetings at the company's head office in Manchester as well as at the franchisee's home.

The Red Flag alert franchise is designed to be started at home, with franchisees moving into an office space once they have grown and employed additional staff. As clients subscribe to the services provided by the franchise, it offers a regular monthly income, with net profits rising to a possible £150,000 by the third year of operation.

The company offers two franchisee routes, with costs dependent on whether the management or lifestyle route is chosen. This ranges from £29,950 to £39,450 plus VAT, with franchisees requiring access to up to £12,000 in funds with bank support for the balance.

Red Flag Alert was developed by Begbies Traynor, the UK's leading independent business recovery specialist, who originally developed the Red Flag Alert system in 2003. The system provides an insight into business performance and has proven to be a crucial tool for small and medium sized businesses since its launch.