PUNT OF THE WEEK

WHAT IS IT?

FRANCHISE Brands owns the rights to business ideas, and sells those rights to other companies looking to use the ideas. The biggest is drain unblocker Metro Rod. Others include plumbing firm Metro Plumb, car repairer Chips Away and dog-sitter Barking Mad.

WHAT’S THE LATEST?

In the first quarter, Metro Rod enjoyed record trading, helped by investment in marketing and IT. New franchisee numbers seem to be up this year.

WHO BACKS IT?

The former boss of Domino’s Pizza, Stephen Hemsley, founded it with Nigel Wray in 2016. They own more than 50pc. Other investors include Canaccord Genuity Wealth Management and Legal & General.

WHY INVEST

Russ Mould, of AJ Bell, says: ‘Management has an excellent pedigree and no shortage of ambition. A limited net debt pile of £6m leaves plenty of scope for investment.’ The plan is to increase sales to £100m. It also pays a small dividend.

WHY YOU SHOULDN’T

Mould: ‘The franchise model has its risks and the biggest one is the franchisees demand a greater slice of the income.’