[Ian Lancaster]

The misconception here is that the franchise owner 'buys' the work

He doesn't.  He buys a franchise.  This entitles him to operate a business according to the franchisors proven system and earn the profits from doing so.  The work is the franchisor's.  This is true for all franchises and in fact most come with no work at all! The new franchisee starts from scratch, building his customer base according to the franchisor's method.  My system is different because we guarantee the franchisee as much work as he can handle.

If the idea that 'self generated' work was the franchisee's 'own' work and not subject to royalties, then no franchising system would work.

[Edge Clean]

Ian

Can I ask, does your franchise license/agreement allow your franchisee to take on employees? Is there an additional franchise fee payable if they do take on employees?

[Ian Lancaster]

Yes.  They can take on as many employees as they like.

No, there is no 'additional' royalty - it's all covered by the basic 20%, i.e. 20% of the franchise turnover, so whatever the gross value of work done is we invoice for 20%.

[Edge Clean]

Thanks Ian

Hope you don't mind a few more questions.

How long does your license agreement last and what is the renewal fee?

Is there reductions in the royalty fee if certain amounts of sales are achieved?
i.e.  First 50k of work royalty is 20%
       Next 50k of work royalty is 15%
       And so on ... This gives franchisee incentive to build his business for both your benefits.

What is the minimum amount of work you would consider franchisable? I like working in batches of £750 per week, but I am in Scotland and prices are not anywhere near what you get down your end of country.

[Ian Lancaster]

The licence is for as long as you want it to be - you decide.  It's guaranteed renewable at no cost provided all conditions have been met during the period.

Again any reduction as an incentive would be up to the franchisor - we don't have such an arrangement because none of our franchise owners have that much ambition.

As I said in an earlier post, we guarantee as much (or as little) work as the franchise owner can handle.  Obviously it would need to be enough for the franchise owner to earn a good income after royalty payments