Old Mutual offers financial franchise opportunities

Old Mutual is looking for entrepreneurs with life industry and investment experience who want to start their own financial franchise businesses.

Old Mutual aims to have 60 franchises by year end, enabling industry professionals who want to work for themselves to link with South Africa's largest financial services brand, while expanding Old Mutuals distribution capacity.

The move is part of a broader strategy to achieve a 30% share of South Africas savings and investments by 2010.

Peter McGregor, Executive General Manager of the newly formed Agency Franchise Division, which is charged with recruiting Franchise Principals and helping to set up the businesses, says the approach is an entirely new one for Old Mutual.

"For the first time well have people exclusively distributing our products, but not employed by us, working together with us in a win-win relationship."

He says potential franchise principals should have sales and management experience and be prepared to commit capital to building a successful franchise business.

"We help get the business off the ground by working with the franchise principal to do a feasibility analysis and prepare a business plan. Using his or her own capital and financial resources, the principal then sets up an office that meets our specifications and begins recruiting at least four competent intermediaries.

The basic requirements for intermediaries are at least a years experience in the life industry. This is a minimum to qualify in terms of fit and proper requirements of the Financial Advisers and Intermdiary Services Act (check)(FAIS).

The franchise operates under Old Mutuals Financial Service Provider licence under FAIS and the Agency Franchise Division provides product training, operational training and support to the franchise..

The Agency Franchise Division gives the franchise a mandate to distribute Old Mutuals products which include MAX, Greenlight, Unit Trusts, Galaxy, Oxygen and other products. The range of products covers banking, short-term insurance, single- and recurring-premium investments, risk and healthcare.

McGregor says that franchising distribution is not a novel concept, but argues that by studying existing models Old Mutual has been able to make some important improvements. Key among these is the training and support given to franchisees; something that benefits both the fledgling businesses and their clients.

Initial indications are that the Old Mutual model is working, with 16 franchises already up and running. 
 
"To grow the Agency Franchise Divisionby another 44 franchises by year-end is ambitious, but achievable because weve got a really good management team in place to drive this initiative forward. Having established the first 16 were confident that there are enough experienced managers who want the opportunity to be in business for themselves, but not by themselves," says McGregor.