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L.J.Thorpe

  • Posts: 2056
Re: Franchising?
« Reply #40 on: November 26, 2007, 10:57:41 pm »
in your original post you said "building my marketing on the same price nationwide" adding or subtracting a certain percentage depending on the area means that there is no national price based on £10 for a three bed semi you would charge £7.50 in scotland and £11.50 in London so how is that a national price also i dont want to be pedantic but scotland is part of the uk and we use pounds sterling not euros so you wouldnt want a scholarship studying geography or international finance  ;D

Ian W

  • Posts: 1161
Re: Franchising?
« Reply #41 on: November 27, 2007, 06:34:33 am »
I am relatively new to this business, but I did run a couple of small businesses before. I was never going to make a fortune in either, but both had similar operations available as a franchise. I looked into the costs of each one and compared the 'advantages'. I didn't find any. They were more expensive to set up, had ongoing costs, and offered little in the way of extra publicity. Guess which I chose?

However, I can see that franchises do work, the McDonalds model proves that, so maybe someone can prove me wrong.
Do all the good you can, and make as little fuss about it as possible.
Charles Dickens

clunk1977

  • Posts: 40
Re: Franchising?
« Reply #42 on: November 27, 2007, 10:20:30 pm »
hi all i would just like to share my experience with you all. With being in the drainage industry for some time working for the local water authority i took the plunge and bought into a drainage franchise.  I already knew a lot about drains and sewers and always wanted to work for myself. I got the promise of national accounts with people like Macdonals and Wetherspoon pub chain and thought i could never get that work on my own. After setting up we find out we are just on a big approved contractors list and had to canvass our own national accounts.  A fellow franchisee and me both started and finished after a year and had both nearly lost our houses. Franchising is simple you do all the work they make all the money. I learned a lot and to never trust anyone in business but a least i learned not what to do and am now doing well with me windas.

Ian W

  • Posts: 1161
Re: Franchising?
« Reply #43 on: November 28, 2007, 08:53:15 am »
Clunk, that sounds like a bad experience. Glad to hear things are going well now.
I think this is a good example of spending a small fortune on a franchise, only to get little or no help in getting your business working as it should. Any body considering this style of business should remember the old saying buyer beware!
Do all the good you can, and make as little fuss about it as possible.
Charles Dickens

bluez

  • Posts: 519
Re: Franchising?
« Reply #44 on: November 28, 2007, 10:14:07 am »
I am not advocating franchising but I am saying that imo it is a model that will be an increasing part of the window cleaning industry in the future. The ones that are for sale at present have pricing structures that are national pretty much as I outlined earlier  and I dont mind you being pedantic L.J. but I am very disapointed that I will not be getting my scolorship. ;)
hi

Moderator David@stives

  • Posts: 8829
Re: Franchising?
« Reply #45 on: November 28, 2007, 10:38:01 am »
What percentage do you have to pay the franchise companies.

Dave

I looked into Snap-On a couple of years ago, with them you have to sign up for about £120'000 for the van, tools etc with very linited terratory.

They worked that they would give you enough to live on and they would take the rest until the £120'000 was paid off, there cut was that you sold there tools at there prices.

I told them i needed £500 a week, they said no chance , show us your bills, you can have £300.
Didnt seem viable at the time as a lot of garages were switching to mactools and every garage i spoke to were a bit annoyed with snap-ons new returns policy.

Dave

Davew

Re: Franchising?
« Reply #46 on: November 28, 2007, 12:50:32 pm »
I can see franchises working well if you have a corner of the market that no one else can touch or a branded product that can't be copied perhaps but window cleaning? I came into this trade to escape from my previous career. I have spent around £10,000 to set myself up wfp. I knew when i started there was little chance of recouping my expenditure but it was what i wanted. Now compare that with someone working trad and it looks like financial suicide. Both methods offer pretty much the same sevice but at vastly differing outlays to the operator.
 A franchise to me is right at the top of that scale (huge investment) and not offering much to the consumer that is not there already. The only way to make money would be with large commercial contracts and i can't see the franchise company supplying many of those. So a newbie parts with thirty odd thousand pounds and immediately sinks unless he is very very lucky.
There is no way a van will pick up £90,000 in work in the first or second year at least.
Just my thoughts. :)

clunk1977

  • Posts: 40
Re: Franchising?
« Reply #47 on: November 28, 2007, 11:08:11 pm »
hi all when i had my franchisle i was paying 12 % of turnover and they ended up only giving me one job in 3 weeks which was worth 60 quid. i had a choice either keep going or go bust when i told them i was having to quit they said oh u in breach of contract so wont get your money back. Some franchises are good dont get me wrong but some are taking a normal industry to franchise and ripping people off. With my area they just sold it on for 30 grand same as i paid. Only problem i had was had no spare cash to spend on solicitors to get me money back.

L.J.Thorpe

  • Posts: 2056
Re: Franchising?
« Reply #48 on: December 01, 2007, 12:00:26 am »
get on the concept 2o or o2 or whatever website and find a local operator i counted 10 in total nationwide none in scotland now that dont seem like many i know of 10 window cleaners within 15 miles of me and i know them all by name never mind the ones i see around to wave at o2 / 2o hardly cornered the market have they or is the website out of date  ;D ;D ;D