REPLICATING THE HIDDEN ART MODEL THROUGH SOCIAL FRANCHISING Dieneke Ferguson Chief Executive Mazorca

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REPLICATING THE HIDDEN ART MODEL THROUGH SOCIAL
FRANCHISINGDieneke FergusonChief
ExecutiveMazorca Projects Ltd trading as Hidden
Art
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WHAT IS HIDDEN ART

• Hidden Art is a membership organisation that
  supports
• and promotes designer-makers, while offering
  companies and
• members of the public access to original design.
  The first Hidden
• Art event took place in 1994. Initiatives now
  include
• Showcasing events (Open Studios, Milan, 100
  Design), training and support services, a
  resource centre (the Bureau) and the Hidden Art
  Design Brokerage service.
• All of these are promoted through the website
  www.hiddenart.com, which features news,
  information and an extensive directory of
  designer-makers work.
• Quarterly colour Hidden Art Magazine

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HIDDEN ART

• Hidden Art is the trading name of Mazorca
  Projects, a
• not-for-profit organisation, company limited by
  guarantee.
• In addition to the support of the Phoenix Fund
  the Hidden Art
• Franchise Pilot Project has also been supported
  by the following
• organisations
•  
• Business Link Hertfordshire, CAN, CREATE Project,
  City Fringe
• Partnership, Government Office for London
  (Objective 2
• Programme), Field Fisher Waterhouse, London
  Development
• Agency, Manual Writers International, Sheryl Webb
  (HR) and UBS
• Investment Bank.

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HIDDEN ART MEMBERSHIP

• Designer-makers who create and make work a
  products with a Predominantly functional use (
  i.e. ceramics, furniture, glassware, lighting,
  textiles and fashion accessories)
• Owner-managers of vulnerable, small to
  medium-sized enterprises, who work mainly as
  designers or designer-makers, 66 of whom are
  women.
• Potential entrants to the sector, including
  recent design graduates, career changers with
  strong creative skills, and members of ethnic
  minorities (20) and designers with disabilities
  who may face cultural and financial barriers to
  market entry. 15 startups, 20 (trading between
  2-4 years), 40 (between 4-10 years), 25
  (trading over 10 years)
•  
• These are considered to be disadvantaged because
  they lack access to information, sector-specific
  support and opportunities to network with other
  designer-makers for peer-to-peer learning.

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HIDDEN ART MEMBERSHIP

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WHAT IS A SOCIAL FRANCHISE

• Defining a social franchise as a franchise that
  reinvests profits to meet the not-for-profit aims
  stated in its mission, it will help
• Support a much greater number of designer-maker
  SMEs leading to business growth and employment
• Help address the reduction in European funding
  after 2006

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REPLICATING THE HIDDEN ART MODEL THROUGH SOCIAL
FRANCHISING

• Support a much greater number of designer-makers
  via franchising the Hidden Art model. This would
  utilise the valuable learning already acquired
  and allow it to benefit a much wider audience of
  designer-makers.
• Enable local networks of designer makers and/or
  key local partners to provide a very similar
  service at a local level, while benefiting from
  the national and international network and
  expertise.
• Improve designer-makers access to a global
  market of new customers.
• Increase sales and create employment in a sector
  that is largely unsupported
• Enable manufacturing companies to gain access to
  new design talent and the joint networking
  facilities
• Maintain the ethos of Hidden Art the creative
  use of local resources, helping designer-makers
  to help themselves and achieve sustainability

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WHAT IS A HIDDEN ART FRANCHISE

• A Hidden Art Franchise is a satellite of the
  Hidden Art head office, providing tailored
  support to designer-makers in a specific
  geographic location.
• As a result of supporting designer-makers
  locally, it also contributes to promoting the
  locality as a whole.
• The franchise concept ensures that there is
  consistency in provision and a clear and
  sustainable strategy.
• Standards and learning can be maintained and
  Hidden Art can continue to represent the
  opportunities offered to the public and
  manufacturers, to discover the hidden talent of
  local designer-makers, while providing a platform
  and meeting place for designer-makers from
  different backgrounds and cultures.
•  

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BARRIERS TO INNOVATION ADDRESSED

• Lack of infrastructure support for
  designer-makers
• Lack of access to skills to develop the
  infrastructure
• Isolation
• Lack of access to global markets
• Lack of networking and information sharing
• Lack of cluster development

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Tackling the barriers to innovation

• The barriers have been addressed through the
  Hidden Art Model.
• The Hidden Art Social franchise aims to replicate
  this through
• Strong Hidden Art brand a franchise would help
  build the brand further
• Acts as a virtual business incubator to
  accelerate development of new business support
  agencies.
• an effective tool to produce social entrepreneurs
  in other areas and transfer knowledge to local
  markets, whilst increasing access to global
  markets
• Presenting an effective way to replicate good
  practice through the network
• Increasing sustainability of the support
  organisation through cutting costs, and through
  access to new ways of generating income
• Increasing efficiency of the support organisation
  through setting standards (including for
  inclusion, equality and accessibility).
• Increasing professionalism

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Effectiveness of tackling the barriers to
innovation

• Applying the Commercial Franchising model to
  Social
• Economy. Benefits
• Greater chance of survival 3 years
• Higher chance of being profitable
• Opportunities across a broad range of sectors
  (part time/full time)
• Sustainability (survivability)
• A route to enterprise low cost entry and
  progression to other forms of business

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Effectiveness of tackling the barriers to
innovation

• Social Franchise model ensures that
• profits are reinvested in the company/community.
• the model is adapted to the local situation
• and access to a global market is facilitated.
• Hidden Art Cornwall is already proving this
• www.hiddenartcornwall.co.uk

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ADVANTAGES OF A HIDDEN ART FRANCHISE

• For franchisees
• Established and growing network of contacts,
  suppliers and buyers
• Follow a successfully tested model system
• Provide targeted assistance to designer-maker
  SMEs
• Less financial risk provided with tailored
  package, training, systems recognised brand
  name.
• For franchisees franchisor
• Opportunity to build brand reputation of
  designer-makers in UK and internationally.

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Franchise assessment and development

• Create/Can Seminar May 03 Franchise Suitability
  Matrix
• Considered range of structural options
  organing, licensing, franchising
• Assess whether ready for franchising
• Feasibility study
• Consider Franchisor Personal Development
  individual and organisation needs to deploy
  different skills
• Appreciate and understand the franchisor
  franchisee relationship
• Develop franchise structure Contract,
  Operations Manual, etc

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Franchise developments Structure

• Feasibility study on franchising Hidden Art
• Funding secured Phoenix Fund (Building on the
  Best)
• Franchise team established
• Franchise contract developed
• Operations Manual developed
• Recruitment process and Franchisee profile
  established
• Development of Business plan template
• Promotion of initiative Recruitment of Pilot
  Franchisee
• 1st pilot franchise (June 05) in Cornwall
  Parent organisation University College Falmouth.
  
• Officially launched 11 November 05

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Hidden Art Franchise package

• A franchise must provide the core services.
  It can also buy into the sales services or
  elements of the business support services.
• Core services Membership, Networking Events,
  Tailored Training and the Hidden Art website
  www.hiddenart.com
• Sales services Design Brokerage, Open Studios
  and Hidden Art stands at trade fairs.
• Business support services the Hidden art
  Bureau a resource library/help desk, the Hidden
  Art Forum, International developments.

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SUPPORT AVAILABLE TO FRANCHISEES

• Flexible Training Package 14 days tailored
  induction on the core services.
• Sales Business Services up to 8 days training
  per service depending on requirements.
• Helpdesk support and free attendance at the
  Forum.
• The Hidden Art Operating Manual detailed
  guidelines on ALL aspects of running a Hidden Art
  franchise.
• Tailored software and bespoke programmes.

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Barriers to effective replication

• Lack of designer-maker presence.
• The organisation interested in running the
  franchise lacks support from the local authority,
  local regeneration agency and/or another local
  agency/organisation ie. an educational
  establishment or renowned organisation in the
  design sector.
• Lack of skills for person running the franchise .
• Lack of cluster development in the area, such as
  an industrial base or an existing network of
  skills and supplies from this base eg.
  metal-working, clothing, jewellery.
• Lack of funding to support the initiative
  initially.
• Lack of understanding of what a social Franchise
  is.

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FRANCHISING - BROADER DEVELOPMENTS

• Exploring options for collaboration with Business
  Link Hertfordshire/CAN through Equal.
• Aim to grow the UK network in the North East of
  England and West Midlands. Have one international
  franchise by 2008.
• For latest, visit www.hiddenart.com/franchising.

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Hidden Art Cornwall

• Extending the Hidden Art franchise to Cornwall
  will give a tremendous boost to designer-makers
  in the county. Work of the highest quality is
  being produced here. If designer-makers in the
  capital can benefit from the networking,
  marketing and advisory services of Hidden Art,
  how much more will practitioners in Cornwall
  welcome the opportunities for collaboration and
  promotion that this franchise can offer
• Chris Chapman, Business Fellow in 3D Design,
  
• University College Falmouth
• www.hiddenartcornwall.co.uk